For small businesses, it can be challenging to achieve the same level of HR, payroll, and business management services as a larger company. Fortunately, outsourced HR services can help you reach the same quality of results for a fraction of the cost. To ensure your company enjoys the best HR outcomes possible, you need to select the best HR provider for your unique needs.

How To Choose the Right HR Provider

In order to find the best HR provider, you first need to understand what your company needs. Then, you should compare some of the providers in your price range to see if they have the services you’re looking for. You’ll also need to consider other factors, such as the provider’s experience and software integrations.

Figure Out What You Need 

First, you should determine what types of services you may need. For example, you may need help training your managers on which interview questions they’re allowed to ask. Alternatively, you may want someone to review your job listings and Fair Labor Standards Act (FLSA) classifications to ensure your company is legally compliant. 

When it comes to HR, it’s hard to know what you don’t know. There are so many different national, state, and municipal laws that it’s almost impossible for an average person to understand and navigate all of them. Because of this, it’s a good idea to get a professional HR consultation and assessment to determine where there are gaps in your processes. Then, you can create a concise list of all the HR services your company needs.

Consider the Provider’s Available Services

Each provider is different, so their offerings can vary. The best HR companies often provide some or all of the following services.

• Employee self-service features
• Wage garnishment management
• 100% compliant payroll taxes
• Integration with your general ledger and payroll
• Time-tracking integrations
• FLSA audits 
• Employee training and development tools
• Compliance updates
• Onboarding assistance
• Performance management tools
• AI-enhanced recruitment and job posting tools
• Legal support

Look at the Cost

As you review different providers, you should consider the total cost of their services. Add up the cost of all of the services you require, added fees, and any other expenses. Then, compare all of the HR providers within your budget range. While the cheapest HR provider is often not the best option, it’s still important to consider prices beforehand because you need something that will fit within your budget.

Consider Scalability

Ideally, the HR provider will be big enough to support your future growth. As your small business becomes larger, you’ll need an HR team that can grow with you. Because of this, you’ll likely want to find an established HR provider that can handle your company’s long-term development.

Check Out Their Experience and Background

If you’re a manufacturing facility, your questions and needs will likely be different from those of a Wall Street financial firm. Because of this, you may want to find an HR provider that has experience working with your industry. As you talk to different companies, make sure to ask them questions about their background and the type of clientele they typically partner with.

Find a Company That Has Excellent Customer Service

At some point, you’ll likely have questions and need help. Because of this, you should prioritize HR providers that have excellent customer service. If it seems like you can never reach the HR company by email or phone, they aren’t the right choice for you.

Each company’s needs are different, so take your time to evaluate your existing HR approach and potential gaps. Then, look at the offerings of different HR providers to figure out which option will be the right fit for your organization’s needs.

Review the Contract Length, Services, and Pricing Structure

After you have narrowed down your search for an HR provider, check out the contract length, services included, and pricing structure. Pay close attention to any add-on services and charges for breaking the contract early. Your company’s needs can change quickly as you grow, so it’s important to find out if you’ll be charged for extra services or customer support.

The Benefits of Working With a Top HR Company

Even large companies frequently choose to outsource some of their HR services. No matter how big or small your business is, outsourced HR allows you to be nimble and ready to grow or shrink at any moment.

• Better HR Services: A top HR provider spends the majority of their time handling HR tasks each day, meaning they can provide better, more compliant services. 
• Improved Affordability for Small Businesses: If you have fewer than 50 employees, paying the cost of a full-time HR specialist is likely unnecessary for your organization. Instead, you can save money by outsourcing your HR needs.
• Increased Scalability: Instead of having to add HR team members as you grow, you can scale effortlessly by using outside HR teams.
• Lower Cost: Because the price of HR services, overhead, and personnel are divided across all of the businesses that use the HR provider, a typical HR provider will often cost less than the cost of setting up an entire HR department.
• Less Time Spent on HR: Often, owners and non-HR staff have to handle HR tasks when businesses are starting out. By working with an HR provider, you can free up your energy to focus on other topics.
• Specialized Knowledge: HR professionals have years of experience working in the industry, so they possess a high level of expertise in compliance topics, recruitment, performance management, and other HR topics.
• Better Recruitment and Retention: In today’s competitive hiring landscape, you need the best job postings, interview process, onboarding, and recruitment strategies possible. By partnering with an HR expert, you can boost your company’s ability to recruit and retain top talent.
• Semi-Anonymous Reporting: Often, employees feel more comfortable seeking help and reporting labor violations to an outsider. For the same reason, outside HR teams are an extremely effective way to conduct exit interviews.
• Penalty, Fine, and Lawsuit Prevention: By working with compliance experts, you can reduce the likelihood of an employment lawsuit, penalties, and fines.
• Up-To-Date Knowledge of Employment Laws: HR laws change all the time, so you need a team of dedicated experts to keep you updated about all of the latest changes.
• Improved Onboarding and Employee Development: An outsourced HR team can help you standardize your onboarding procedure, so your new hires are given the same consistent, high-quality training.

Learn More About the HR Services Your Small Business Needs to Thrive

Before you take the next step in growing your small business, you need the right HR procedures in place. Through the help of an experienced HR company, you can get world-class onboarding, recruitment, retention, and compliance services. 

To take the next step in finding the best HR provider for your company, reach out to our team of small business payroll and HR experts today.