Business is a game of balancing the bank account and company productivity, especially when you are a small to medium start-up business. Although you are small now, you don’t always plan to stay there, so you should set up a human resources department to take care of the necessary background functions of your company. Employee pay, invoicing, 401k, insurance and balancing the books all go through the Human Resources department, but should you set up an in-house human resources department or should you be outsourcing human resources.
In-House or Outsourcing Human Resources
A lot of times the choice to build an in-house team, or outsourcing HR, comes down to your bank account. You shouldn’t make a move until you can guarantee someone’s salary is paid, or at least a large portion if the spot is that important to fill. So let’s take a look at the differences in setting up in-house HR and outsourcing it.
In-House Human Resources
Having an in-house HR team has the benefit of having one client, you. With that being said, they can be extremely expensive and tricky to build. Finding the right people to cover your books in and out, handle employee issues, file taxes, etc., can really turn into a challenge, and can often times require multiple people depending on the size of your company. Even if you think, “well, I’ll just find a human resources generalist to take care of everything!” you’re still in for spending a pretty penny. A typical HR generalist salary will set you back about $70k – $80k… to start.
If your employee is good, but can’t do everything you need, you will also have to invest in training, or another person for the staff to fill the gaps in your team’s talents.
Everything is all under your roof when you build the team, but can you really afford to sustain a team? Even if you say yes, you might still want to look into outsourcing HR for your business.
Outsourcing Human Resources
Outsourcing your human resources lets you put your business’ books in the hands of a trained professional team without having to spend any extra on training. You get guaranteed bookkeeping with the highest level of experience to back them.
With an outside human resources team, you cover the jobs of a small HR team and then some. From small to medium business, you can save time and money by outsourcing your human resources team.
The biggest advantage of outsourcing HR is the saving on cost. Let’s take Bell Solutions as a prime example. Our top package will cost you $850 a month, but you get a full HR solution for your money. That’s $10.2k a year for an in-depth HR department for your business.
