• Size of the organization - as the business grows, some companies still can't justify the cost of having a full time in-house Human Resource role/department
• Demand or awareness of the need for human resources - many may not realize the HR compliance requirements that are associated with running a small business
• Cost dedicated to having someone fill the role on a full time basis when perhaps the needs are only occasional

A viable alternative is outsourcing the strategic human resource function to an HR Consultant who can fulfill the role on a part time or "as-required" basis.

The Benefits
Human Resource Consultants provide a variety of HR solutions such as:

• Recruitment and Selection - demands of day-to-day activities preclude a senior manager from taking on a detailed search and screening of qualified applicants
• Policies and Procedures - putting organization around basic policy and procedures is time consuming and can be handled more efficiently by an outsourced specialist
• Employee Performance Management - structured in an effective and consistent manner by a seasoned professional
• Standardized forms - includes Offer Letters, Non-Competes, Vacation Requests, Performance Appraisals, Counsel Records, etc.
• Job Descriptions - setting structure and substance around detailed requirements
• Orientation Programs – an activity that, when consistently conducted, can be rewarding for both the new employee and the organization
• Outplacement services - when performed effectively, can result in a departing employee feeling better about their situation

And the list goes on…

When deciding to outsource these functions, ensure the human resource needs align with the organization's goals and strategies. Conduct a SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) with the HR Consultant to prioritize the organizational needs and determine how the human resource function can be strategically allied in achieving business goals.

The Rewards
Outsourcing Human Resources services can:

• Reduce costs by bringing in an experienced professional for key tasks/projects
• Ensure HR processes are handled effectively, consistently and in compliance with statutory requirements
• Assist with organizational growth and support of employees
• Maintain and enhance management/employee relationships
• Guarantees dedicated focus on Human Resources, optimizing employee and management proficiency

When considering an outside source for human resources, keep the lines of communication open with employees and ensure their commitment to the process, as this is a significant change. The seasoned HR professional can be very supportive and effective in handling this transition.

Human Resource solutions can be provided as required or grouped together to maximize costs. The best option is to have a dedicated HR Consultant retained on a monthly basis. At a moderate cost, the smaller sized organization has professional expertise "on staff" without the total cost of a full-fledged HR department.

Outsourcing the organization's human resource functions is a major commitment as well as a convenience so be sure to ask for references before proceeding.

Good employees come from good policies, which recruit good people and provide effective training. This leads to better direction of skilled employees, bringing the best out of their contribution in a healthy and communicative environment.

Article by Dinah Bailey, HR ByDESIGN