Originally published in the Eastern Pennsylvania Business Journal on October 3, 2011
Hiring and managing good employees for your small business can be a burden. That’s why many entrepreneurs are turning to professional employer organizations to handle the complex, time-consuming administrative tasks of human resource management.
These organizations are companies that help businesses find and hire people, plus manage such things as health benefits, workers’ comp claims, payroll, and unemployment insurance. As a business owner, you contract with an HR organization to assume these and other responsibilities, allowing you to concentrate on the revenue-producing side of your operations. They establish and maintain an employer relationship with the workers assigned to you, and assume many employer responsibilities and risks.
Most small businesses are new to the human resources field. But one advantage of using a professional employer organization is that they already have experienced HR pros who can handle benefits, payroll, OSHA compliance and just about everything else you will need,
By bringing employees into a larger overall group, such an organization can offer your workers benefits such as health insurance and retirement plans – valuable perks you’d be hard-pressed to deliver on your own.
Pre-employment testing is another area in which they can help. Without a screening process, you risk placing the wrong person in the job, leading to lost productivity and costly turnover. These organizations tailor pre-employment tests to predict loyalty to you as well as success on a specific job. The tests aren’t foolproof, but they can have a big impact.
Small business owners often dread the prospect of reading mountains of resumes and conducting interviews for prospective hires. These organizations can reduce this burden and deliver candidates quickly, then handle the paperwork for the new hire. Some have entire divisions devoted to recruiting and helping small business owners gather information to make the right hiring decisions. Small wonder why many entrepreneurs credit these organizations with helping them quickly grow their businesses.
An excellent source of information for indentifying and working with organizations like this is the National Association of Professional Employer Organizations. Their website, www.napeo.org, describes how they work, the benefits they offer new and growing small businesses, and guidelines for selecting one that’s right for your HR needs.
This article was prepared by SCORE, a nonprofit organization who provide free, confidential business counseling and training workshops.