Human Resource System
A human resources department is a critical component of employee well-being in any business, no matter how small. HR responsibilities include payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws.
Any mix-up concerning these issues can cause major legal problems for your business, as well as major employee dissatisfaction. But small businesses often don’t have the staff or the budget to properly handle the nitty-gritty details of HR. Because of this, more and more small businesses are beginning to outsource their HR needs.
When you outsource HR functions, some services go with the “all-or-nothing” approach, requiring that they handle all your HR functions or none at all. Others offer their services “a la carte,” meaning you can pick and choose from the services they offer.
Typical services include:
- Payroll administration: Produce checks, handle taxes, and deal with sick time and vacation time.
- Employee benefits: Health, Medical, Life, cafeteria plans, etc.
- HR management: Recruiting, hiring, and firing. Also background interviews, exit interviews, and wage reviews.
- Risk management: Workers’ compensation, dispute resolution, safety inspection, office policies and handbooks.