Starting a business as an entrepreneur takes a lot of upfront energy to make it happen. Entrepreneurs are a special breed of people. Not everyone has what it takes to create a successful business. If you've been able to accomplish this, congratulations. You deserve all of the fruits of your labor, but are you taking the time to enjoy your success? How much time are you spending on your business? If you are spending more time on your business than you are anything else, chances are there are things you are doing that could and should be done by other professionals. Human Resources is one of the hardest departments to manage in your business, especially if it is all being done by you. The reasons you should delegate HR are many, but we'll focus on the most prominent five.
When your business was as brand new as your title of Entrepreneur, everything needed to be done by you. Unless you had a business partner splitting up the duties, the job of every department was you. But things have changed now that you are up and running, have you?
Every entrepreneur endeavors to grow their business to its full potential. How are you going to do that if you are doing everything by yourself? The most apparent reason that entrepreneurs will give when you ask them why they won't delegate is money. It is true that hiring professionals to do other jobs, like delegate HR, takes investment. But growth takes investment also, be it time or money (or both).
Focusing on money as the reason you don't delegate HR or other job functions is nearsighted and flawed. You can't give something you don't have, and if you are leaving HR up to you, there isn't going to be time for focusing on your growth strategy.
The next thing that stands in the way of growth is burnout. A staggering 82% of employees in a recent survey said they felt overworked. How much more so their CEO? When most of your workforce is feeling the pinch of job stress, how are you doing? Overworked employees are not as productive as they should be. Don't fool yourself, neither are you. If your business isn't where you want it to be today, it may be that you are working too much, rather than too little. Entrepreneurs need to delegate HR and other functions like payroll and compliance to people who do that for a living. If you want to be more productive, the answer is delegation not less sleep and no weekends off.
No one thinks they need help with HR until a situation happens. HR laws and labor compliance are complicated. You can unwittingly walk your company into trouble by just not knowing what you should know about hiring, firing, and just plain employing people legally. What are all the labor compliance laws in your state? Do you know? Have they changed since the last time you looked? What happens when you have to let someone go, are you prepared to do that legally?
Don't wait until a letter from a past employee's lawyer hits your desk. HR professionals are the ones entrepreneurs should delegate HR to. It's their job to protect you from non-compliance of labor laws and to understand how to navigate employment the right way.
Yes, you need workers compensation insurance. It's not a nice-to-have. Unfortunately, businesses that aren't manual labor focused tend to think it's not a priority, but anything can happen to injure an employee in an office. Being caught without workers compensation insurance could cost much more than what avoiding paying the premiums are. Insurance equals protection. An HR professional will understand why this is necessary and what to do to find you the right coverage. When you delegate HR to a professional, you are creating space for confidence that you are doing right by your employees and your business.
The last reason for entrepreneurs to delegate HR to professionals is not having to be the one everyone goes to for everything that pertains to employees and employee relations. Having to negotiate interpersonal issues in a business is a tricky area for even the most seasoned of employers. You need to make sure issues are being handled cleanly, especially with things like harassment in the workplace. How is your confidence level with touchy subjects like this? An HR professional knows what to do and what to avoid with messy things that come up when you have employees. Let them handle it before you get into trouble.
If you saw dollars signs roll by like a stock market ticker tape as you were reading this, don't panic. You don't have to go bankrupt, trying to cover all of these issues with an HR professional. The answer to all your HR woes and then some is as easy as working with a PEO. If you have never worked with a PEO before, you will quickly find out they are the answer to an entrepreneur's prayers when it comes to employment.
A google search on PEOs will generate hundreds of results. Which one is the right one for your kind of business? Working with a PEO broker like PEO Spectrum will help you find the PEOs that work best for your business type and size. They have a system to find results efficiently and cost-effectively. Best reason yet, the cost of using their service to find a PEO is free. Want to know how PEOs will help your business grow by delegating HR? Contact PEO Spectrum today to find out more.
If you’d like to find out more about how PEOs can help you provide great benefits and payroll management at less than you are paying now, contact us today for a free consultation.
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