At what point should a small business look for HR help?
I'm looking to hire for my small business. However, I've had a bit of difficulty in assessing potential hires, and finding quality applicants. Do you have any tips for hiring for a small business? At what point should I look to outsource HR help?
Hold tryouts. Give projects that allow a candidate to showcase their skills.
In lieu of this, hire for who they are.
But really, staffing will likely be the hr of the future and since you are just getting started you probably don't have a lot of restrictive policy.
Hire a hero, outsource.
I provide persons on a results orientated contingency.
Hi Colette. It all depends where you're based but here in the UK., immediately to ensure that you stay abreast of current legislation and avoid heavy fines or future tribunal costs through failure. Here and elsewhere there are plenty of "outsourced" services for a nominal monthly fee, who will keep you up to speed, issue contracts etc. When it comes to hiring, the same goes for recruitment agencies. It will cost you a commission but you can at least "try before you buy".
Colette, many great responses on your question. If you chose to outsource payroll (recommended) the provider should be able to offer you a cost effective HR solution. We offer HR support for as little as $10 per month (self serve) or $30 per month (full serve) with 800# to call PHR certified people.
Determine 4 or 5 key skills required for success in the position you are trying to fill. Then develop 2 or 3 behavior based questions for each skill. This should result in 12 to 15 questions to use in and interview. This will go a long way to better placing the right person in the right role. Hope this helps and best of luck.
Yes There is Important protection for employee ,Protection company interest and motivating employee
Each state has different workman compensation requirements, unemployment insurance costs as well as others. Go to a paycheck company and learn the details and costs. Some of the information will make your head spin. Once you understand the full cost of adding an employee, think carefully about how many and whom. Being stingy will also bite you in the rear. Loyalty is not purchased for 9/hr.
You could look into Virtual Assistance or Independent Contractors. The benefits are cost effective.
I am an HR professional who has been brought in to support several start-up companies at various stages of growth and I would say ALWAYS seek professional HR advice from the beginning if you wish to hire other people. I have had to resolve issues that could have been avoided, such as addressing incomplete or ineffective contracts of employment which would have landed the company in hot water had they been taken to tribunal.
However, I would never advocate spending money unnecessarily so I would recommend that you are selective about the type of HR support you acquire. One company I worked for needed highly specialised technical staff and paid a retainer to a headhunting agency to source them; however, in the absence of inhouse HR, this agency was also asked to source admin staff but there is no need to pay 40-50% of salary for these less specialised roles. Hiring an HR professional actually saved these companies a significant amount of money.
I’m sure you will be able to find an independent HR professional who can give you ad hoc advice on matters that concern you for an hourly rate.
I also think the ‘Small Business Employment Law for Dummies UK Edition’ is really useful. If you read through that, it will give you a very good idea of possible scenarios you may come up against, giving you the opportunity to assess where you really wouldn’t be comfortable or it wouldn’t be appropriate to handle it yourself, and then get in the professional.
The best way to hire employees is from word of mouth referrals. You can use your social network to get the word out. If you use a staffing company, it's a good deal to consider temp to hire placements so you can try your new hire out without committing to a permanent hire situation. Some businesses offer an online HRIS system so you can manage applicant tracking and offer screening tools. If you feel you cannot assess potential hires, then perhaps you should consider a staffing company and then try to obtain some training in recruiting to help you for future hires.
Colette. About now seems a good time to get some HR support. The hiring project is the place to start. The HR support can help with getting the right people into the business and prepare the necessary documentation to ensure compliance with legal responsibilities. As the business grows the HR support can provide further support in terms of systems and dealing with issues.
There are many Job finders companies, these are HR agencies. Jobs.com is one I have used in the past, you post with them what you are looking for, experienced, newbie, talents, skills. You will be notified when they find a candidate.
When do you need an HR person/ help, well I would think when you find your time no longer gives you the space needed to perform the tasks yourself.
Today, I think more than at any other time in this country you need RESUME's. And verifiable work histories. So many people need work, and their word can not always be relied upon. Professional help is very difficult to find, and the right fit for your organization is even more difficult. HR agencies can be of great value in bring prospects to your door, however in the end only you can make the final decision.
As a business owner, I can tell you that a small business is no place for a full time HR person. You may be at the point where getting some outsourced help is the answer and there are plenty of consultants and firms offering such assistance out there. Do not let hiring get away from you and do yourself a favor and do not reach out to recruiting firms at this point. They are seeking to move bodies mainly for the fee and do not always have your best interests at heart.
As the owner and founder of the company, you want to build things right and I cannot stress enough that you do your research as to the types of personalities and skills you want in your company. I have a great mix of young and older experienced staff and it really shows as we have become a great team being able to balance each other out. There are many resources online that can help you with assessing potential applicants and you can do the usual background checks through an outplacement firm for minimum cost.
Think about how big you want to grow, but always keep in the back of your mind that applicants these days want to see a fair amount of transparency in you as the company leader and HR often clouds that view.
You are describing two different roles, both of which get lumped into HR:
1. Setting up your employee systems so that you are in compliance with all the myriad regulations, and to assure a productive workplace. For this you need a top-level HR consultant, but not for a lot of hours. Doing this properly from the beginning saves you so much grief later.
2. Helping you interview and hire, so you get the best people and get them started off on the right foot. Somebody with strong interviewing experience can take 80% of the load off your shoulders, while insuring that you make the needed input and choices. This takes a skilled person, but they're not as expensive as the HR consultant.
My wife is an HR consultant. Her clients are those who neglect #1 above. They let these issues slip until the government comes after them, they get sued by a disgruntled employee, or productivity crashes, taking their profit margin along. They pay her a lot of money to correct problems that could have been inexpensively prevented.
Here is a resource that might be useful: http://bit.ly/1pc4EV6
You have received some great advice here. I can tell you from my experience with working with small business owners especially when hiring their first employees it usually comes down to one of these factors:
1. Focus more on skills than attitude
2. Focus more on attitude than skills
3. Unclear on what they need the person to
I walk business owners through a process where the last thing there are doing is interviewing people. Be sure you know what qualities you want the person to possess and how will you determine if they possess them. Only once you have that can you create an ad or tell people you are hiring.
When to look for outside HR help? As soon as you feel you need a consultant. Again, be clear on what you want from them and then start talking.
I would be happy to discuss further if you have more questions.
After working with and for entrepreneurs for years, I realized that so many needed help with hiring but couldn't afford to outsource this function. So, that's why I created my company, Hire With Ease. We charge low flat fee rates to help small business owners with the hiring process. Let me know if you would like some help. I'm happy to give free advice as well, if there are just a few pointers you're looking for. There are tons of tips to share, so if you have some specific needs, please reply with them and I'll point you to some good resources.
When you don't feel comfortable with the task... outsource it. Learn more from your outsource and go from there!
It is always good measure to have an HR consultant around to answer any question that you might have in the beginning and as you grow. This way you don't have to back track and recreate documents and other things that might be good to have from the start. They will also be able to help you with find the right people for the position you want to fill. It is also important to keep your budget in mind have an idea of what you want the HR person to handle and you should do well.
It doesn't matter the size of the company. Remember how comfortable it was to be introduced to your new work environment, safety procedures, career perspectives. Or simply having someone that took the time for you, to make you feel comfortable in order to be performant. Small sized companies have a peculiar aspect about the flexibility of the workforce. Permanent motivation is easier because everything is new and everyone is trying to get used to the performance indicators that are being developed as the company thrives forward. At this point you are the best HR help that anyone could need or even afford. These important moments, just like children in their adoloscent times. You are the only one that can give them the profile, the manners, the habits, the drive and the smarts that YOUR company needs to grow. My experience has shown to me that the best person to assist you in this is your personal assistant.
When routine starts hitting the fence, than it is time to get some more professional help that will help you structure a career development program, eventully connected to bonification and/or salaries. Training is also important and should be done by professionals. Your responsibility at all times (HR) is to ensure that the company is given its employees all support that was promised and with respect to your ideal. Finally it is just a matter of being human to humans. Outsourcing is to do those tasks that are important, but not critical to your business. The critical tasks are your responsibility.
If HR isn't the thing you excel at immediately would be the correct answer. You may need to look into the legalities of your state for instance in the state of California when you hit the threshold of 50 employees you need a full-time HR professional on your staff. In assessing and finding quality talent first where are you placing the hiring ads if it is craigslist, you probably will have a very hard time going through the multiple applicants to find the quality you would like. In my experience it may be useful to hire a professional to complete this process, and give you tips on the selection process. I would definitely hire them only as a 1099 independent contractor, and check their references. I find in addition depending on your business, it may be better to try and connect to a local community college to source candidates, or non-profits. Occasionally local chambers of commerce can help you also with the hiring process. On e last option is a temp agency, where you can test drive a potential employee before you make them an official member of your team.
When it comes to small business, HR only needs to help when it comes to venturing into an unknown country's legislation. If you are a local business venturing only within your vicinity, the business owner would have known local country's legislation pertaining to labor law and other disciplinary HR procedures besides monthly attendance and payroll.
Here is how I would suggest you go about it, no matter what size of business.
• Have a business plan in place, for the next few years..
• Based on the above identify the critical areas to effect the plan.
• Understand how many people would you require to man critical areas.
• Prepare the roles and responsibilities for each of the roles envisaged.
• Hire an HR consultant, to discuss each role, iterate and take it forward.
• Hire the resources who best fit the skill set and the culture you aim to create.
• Grow and add as per need
Best of luck