Outsourced HR Manager for Small Business

The Milestone Team February 23, 2024
Outsourced HR manager for small business

Does your small business or startup have a dedicated HR department? If not, your leadership team is likely bogged down with tasks like maintaining legal compliance and writing job descriptions. So why doesn’t every business have HR professionals ready to tackle these initiatives? For many, an in-house HR team is out of budget. Fortunately, outsourced HR for startups offers a budget-friendly solution for small businesses to power up their HR team. In this guide, we show you how.

What Does HR Do in a Small Business?

The role of HR in a small business or startup is to ensure your internal processes run smoothly so the rest of your team can excel in their roles. Think of small business HR as your mechanic. They keep your business’s engine tuned and your oil clean, so nothing goes wrong on the road ahead. To achieve this goal, human resources services provide the following:

What Does HR Do in a Small Business?

Monthly HR Support

These services are designed to keep your business functioning smoothly on a daily and monthly basis, and they can cover:

  • Employee onboarding and offboarding
  • Employee/employer relations
  • Exit interviews
  • Employee handbook development and distribution
  • HR compliance monitoring
  • Employee Benefits, COBRA, 401K, and leave administration
  • Unemployment claim administration
  • Annual personnel file audit and maintenance
  • Labor law postings

Strategic HR Initiatives

These services are designed to support your team and propel them towards achieving key strategic goals, like growing your team:

  • Total rewards management
  • Talent acquisition and retention
  • HR assessments
  • Providing learning and development opportunities
  • Performance review coordination
  • Employee engagement surveys
  • Stay interviews
  • New manager playbook creation
  • Quarterly business reviews
  • Fostering a productive and inclusive company culture
  • Handling PEO unbundling

Payroll Services

These services focus on an absolutely critical piece of any business—ensuring your employees get paid and get paid on time. Money makes the world go-’round, and the following services keep your business going with it:

  • Payroll processing and administration
  • State and local registrations
  • System selection and implementation

Have trouble checking all of these boxes? Then, it’s time for a change. Fortunately, you don’t have to go it alone. For businesses with limited resources, outsourced HR services can step in where you need them for a fraction of the cost of growing your HR department. Check out the HR checklist for startups to learn more.

What Does HRO Mean in Human Resources?

In the world of human resources, HRO stands for human resources outsourcing. Outsourced HR services (also referred to as HR outsourcing services) are services provided by a third party that assist in the functioning of your business’s back office. The primary goal of outsourcing HR is to free up resources to invest elsewhere in your business, such as product development or marketing and sales.

According to Salary.com, the average salary for a human resources manager is $118,442 per year. HRO—also known as fractional HR services—costs only a fraction of that to perform the same services (see, it’s in the name).

If you’ve ever wondered how quickly your business could race ahead if you could send more gas to the engine, it’s time to consider outsourcing HR services. Our team is ready to help you make the leap.

What Does HRO Mean in Human Resources?

Why Is Outsourcing Good for Small Businesses?

Outsourcing human resources solutions for small businesses is often advantageous because you gain access to expert help only when you need it. Think of it like hiring a roofer. You wouldn’t add a roofer to your full-time team if you only had a leak once a year, right? That would cost a ton in salary and benefits for a lot of downtime. It’s similar to when small businesses outsource HR.

Certain HR functions can work the same way. For example, your business will go through periods of time when you want to expand your team. You’ll need a robust HR department to fine-tune compensation packages, write job posts, work with recruiters, conduct interviews, oversee onboarding, and plan ongoing training and development initiatives. You may even need to hire additional HR members to get all of these jobs done.

But what happens once you’ve filled all of your vacant roles? You’ve brought on extra HR team members to handle the mountain of work, but now you’re back in the valley. That’s where human resources outsourcing comes in. These services are fractional, so they’re easy to implement when you need them and easy to take a break when you don’t. Ultimately, HR outsourcing service means more resources for investing in the areas of your business that need it most.

There are plenty of HR outsourcing companies, but at Milestone, fractional HR services are our specialty. Our experts are ready to jump in for as much—or as little—as you need. Give us a call to learn more.

What Does an HR Manager Do in Outsourcing?

Traditionally, an outsourced HR manager for a small business oversees the work of external team members. While this can still be the case, it’s no longer the only option. Small businesses and startups can also outsource the role of HR manager. This role is typically responsible for tasks such as:

  • Recruiting
  • Interviewing
  • Hiring and Onboarding
  • Communicating with Executives

For startups who don’t already have an established HR department, outsourcing the role of HR manager is a quick (and cost-effective) way to build one. Without a specialized department, after all, HR tasks still need to get done, and they fall on the shoulders of leadership members who are already stretched thin.

If the above situation sounds familiar, you’ve probably been searching for an “outsourced HR manager for a small business near me.” Milestone could be the solution. With experience across a multitude of industries, situations, and business sizes, we’re ready to make a positive impact quickly. 

What Does an HR Manager Do in Outsourcing?

What HR Services Can Be Outsourced?

Outsourcing in human resource management can be effective for nearly all HR services. This includes:

  • Recruiting and hiring
  • Retaining top talent through financial compensation, professional development, and other benefits
  • Optimizing employee performance
  • Improving company culture
  • Communicating and enforcing safety policies

However, there are a few critical decisions that shouldn’t always be made by outsourced partners alone. For situations like final hiring and firing decisions, it’s important to get an internal stakeholder involved. This way, everyone can get on the same page and move forward as a team.

When it comes to finding an outsourced HR services provider to work with, you should find a partner who gets to know your business and puts your best interests first. That’s exactly what you get with Milestone. Get in touch to learn more about how your business could benefit from fractional HR services.

What Are the 5 Types of Human Resources?

The five types of human resources are:

  • Recruitment and Staffing
  • Employee Relations
  • Learning and Development
  • Performance Management
  • Company Culture

Just like your finance department manages money coming in and out to yield the most benefits for your business, HR ensures your people are enabled to support your organizational goals. From making sure you have enough people on your team to ensure your valuable employees stick around and continue to grow in their careers, HR is an absolutely critical function. 

What Are the 5 Types of Human Resources?

How Do You Choose HR Outsourcing Services?

The first way to choose an outsourced HR company for your small business is to ensure they provide the services you need. However, that’s not the only qualification you should consider when searching for “HR services for small businesses near me.” Experience with small businesses in your industry is a must. Another essential is finding a partner, not just a service provider, who doesn’t take the time to truly get to know your business.

Looking for a partner that’s bursting with experience and tailored services? Then it’s time to give us a call.

How Much Should HR Cost a Company? Is an HR Outsourcing Provider Expensive?

Like any aspect of your company, you want the best results with the lowest cost. For small businesses and startups who want a lean operation, outsourced HR services can offer the best of both worlds. That’s because these services cost less than adding additional full-time positions to your payroll.

How can outsourced HR services provide high-quality services at a fraction of the cost? By giving you the opportunity to pay for only what you need and nothing more. Your team can partner with an outsourced HR provider for a project, to achieve a strategic initiative or to supplement your current team.

For a better idea of how much these services can cost, contact us! Our team would be happy to walk you through your options. And if you’re not quite sure which services would benefit your business, we can help with that, too.

How Much Should HR Cost a Company? Is an HR Outsourcing Provider Expensive?

Sharpen Your Small Business’s Competitive Edge with Milestone!

HR likely isn’t the first thing you think of when it comes to rocketing past your competition. However, it’s absolutely essential. You can’t make an excellent product or service without great engineers and designers, and you can’t close deals without top-notch marketers and salespeople. HR recruits top talent to your team gives them reasons to stay, and provides them with the tools they need to succeed.

Not all HR outsourcing services are created equal though. For the best HR outsourcing services, look no farther than Milestone. At Milestone, we have the know-how to help you leverage your HR systems to work for the rest of your business, not against it. Contact us today to get started.

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