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When Should You Add a Human Resources Service to Your Business?

Posted August 15, 2022 in Human Resources

3 Minute Read: 

A human resources department is an integral component of any business entity and is actively involved in almost every area of the company. Professional human resources (HR) practitioners provide several services that enhance employees’ experience, improve productivity, and strengthen business operations. 

Three employees having a meeting in conference room.

Whether you are going to have an in-house HR team or outsource HR services, the main objectives of your HR department will be to keep your company functional, strong, successful, and free of costly litigations by coming up with sound policies for handling employees’ matters.

If you are not sure if it is time to hire HR services, Gallant Risk & Insurance Services, LLC, is an excellent firm to consult. Get in touch with us at (951) 368-0700 to learn more about the benefits of hiring HR services.

When Is the Right Time for A Business to Hire HR Services?

In the initial stages of a business, it can make sense for the business owner to handle human resources tasks themselves. 

In fact, about 54% of small business owners choose to handle human resources on their own. 

However, as your business grows in size and complexity, managing human resources can become a daunting task, meaning that you might need the services of a professional HR expert. 

Some of the important factors you should consider when deciding whether or not to hire HR services include:

Number of Your Employees

There is no rule stating the number of employees you should have to warrant hiring HR services. 

If you have just a couple of employees, it may not be necessary or economical to hire HR services. However, if you have more than 15 employees, handling their issues may become too hectic for you, and therefore, you may need to hire an in-house HR team or outsource HR services.

Amount of Time Spent on HR-Related Tasks

Unless you run an HR firm, you did not become an entrepreneur to be handling employees’ issues. 

In the initial stages of your business, you may not have much to do, meaning that you could have enough time to handle all HR tasks on your own. However, as your business grows, you may find that you have more to do than time can allow. 

The rule of thumb is that if you are spending more than 18 hours on HR tasks every month, then you should consider hiring HR services.

Should You Hire Your Own HR Personnel?

Once you have decided that your business needs HR services, you may decide to employ HR experts to help you manage human resources. Alternatively, you can decide to outsource HR services. 

The right decision for you depends on several factors. For instance, if your company is small and you have just a few employees, having an in-house HR team may be uneconomical, meaning that it might be wise for you to seek the services of an HR firm. 

On the other hand, if your company is large and you have more than a few employees, you might need to have an in-house HR department to exclusively handle employees’ issues. 

An in-house HR department can also help with shaping your company’s culture and improving the relationship between a company and its employees.

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