Business Owners See Increase In Time Spent Managing HR Administrative Tasks

Many small businesses with 50 employees or less often do not have a dedicated Human Resources manager leaving the burden of day-to-day responsibilities associated with having employees to the business owner. As your business grows, once seemingly minor tasks such as payroll processing, hiring, and benefit selections become increasingly vital to the success of your company requiring more time to manage properly.

In addition, steadily increasing federal and state employment regulations result in even more time dedicated to the administrative side of your business. Between 1980 and 2000, the number of labor laws and regulations grew by almost two thirds, says the federal Small Business Administration, which estimated owners of small or mid-sized business spent up to a 25% of their time on employment-related paperwork alone. On average, according to recent industry surveys, many business owners spend up to 40% of their time on all related HR related tasks.

Outsourcing some core HR functions can be a time and cost-saving solution as an alternative to hiring your first dedicated HR manager. By hiring an HR service provider, employers gain approximately 100 hours a month that can now be dedicated to core business functions. Among the top HR tasks outsourced by businesses today:

  • Employee Relations
  • Compensation/Benefits
  • Recruitment
  • Training
  • Payroll

Many business owners find that it takes less time, effort and cost to manage the outsourcing relationship than it would be to have these tasks in-house. How do you know it’s time to consider working with a human resource provider? One sure indicator is if your staff resources are consumed by HR tasks exceed the cost of hiring one. Combined with the overall cost savings on services HR providers deliver, rates can be less than a full-time human resources manager.

Ready to learn more about human resource outsourcing? Principle Strategies LLC provides strategic Human Resources and Business Solutions services. To find out how we can optimize your business to save you time and money call us at (757) 626 – 3533 or email Solutions@PStrats.com.



  • http://www.napeo.org/peoindustry/industryfacts.cfm
  • http://www.dohertyhro.com/resources/todays-storm-hr-responsibilities
  • http://visual.ly/when-hire-hr-manager
2016-01-06T21:41:55+00:00Human Resources|