When to Outsource HR
Once an organization decides to provide HR services to its employees it needs to decide if it makes most sense to hire an internal HR team member or an outside HR team. According to Entrepreneur Magazine, there are a few key criteria in considering that decision:
- Is your company large enough to need internal HR? Most companies outsourcing human resources tend to have between 16 and 80 employees, however there are many exceptions. The general rule is that when administrative processes begin slowing down productivity, it might be time to outsource.
- What level of control is important to you? With an outsourced HR team, the ideal situation is to find one that works in partnership with your organization to ensure all policies and practices nurture the culture you’ve worked so hard to create. Although an outsourced HR team will have its own business culture and practices, it’s wise to invest time in finding one that complements you and your organization.
- What services do you need? You may know which HR services you need or you may not. That’s okay. Ideally, you want a team of HR experts who will work with you to figure out what’s best for your organization. Ask if they have experience in your industry and province, and how much face-to-face support you’ll receive.
- It is also important to consider if the HR services you require are best accomplished by an individual contributor or by a team. Important factors to examine in the analysis are the years and type of HR experience required, your HR needs or expectations and the budget. The following table may help:
|Job Title||Years of HR Experience|
|VP of HR||10+|