In a post this week on Workology, a site focused on the trends, tools and case studies for HR, recruiting professionals and business leaders, the subject of HR and Startups was discussed. The article outlined the many reasons why hiring an HR professional is an important step for Startups and one that needs to be done sooner rather than later. In the article, Jessica Miller-Merrell says, “…once the company has a founder and more than two paid employees, your third employee should be an HR manager.” She goes on to state that this HR manager should be “…highly experienced with HR compliance, strategic hiring, and work culture and structure.” That hiring a newbie can be dangerous since no one in your organization can train them.
While I agree with the reasoning, I question the timing of the suggested hire. Is that the best allocation of your resources? An experienced HR professional will require a salary of at least $50k in most of the United States. As a Startup, your resources are limited and focused on growth. Is that salary better allocated to marketing , sales or research and development? However, the idea is solid. Human Resources is essential to the success of a company. The risk of mismanaging your personnel, making compliance errors, potential lawsuits – they can sink your company before you have a chance to succeed.
Human Resources includes many components and some essentials may be neglected in a Startup. Are your benefit plan offerings up to par; are you offering a complete package to attract the best talent? Are you filing payroll taxes correctly? Who handles your workers’ compensation; what happens if an employee is injured? Are your personnel forms and notices compliant?
There are many roles that are important for the success of any business, and essential to a Startup. Why hire 3 or 4 HR people when you can outsource and retain top talent at a fraction of the cost? Outsourcing these functions to Spirit HR allows you to focus on growing your business while we keep you compliant and up to date. Our benefits package allows you to offer a wide range of supplemental benefits in addition to health and a 401(k) plan. Our cloud-based software gives you ease and accessibility for your payroll processing while our risk and workers’ compensation departments keep you safe and compliant. And as far as the Human Resource needs discussed in the Workology post, we’ve got you covered. Our highly experienced HR staff will keep your company up to date, compliant and assist with any issues that may arise. Outsourcing is a simple way to fulfill many needs for a growing Startup.