Reduce Risk by Outsourcing Human Resource Functions for Small Business

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Outsourcing has a bad reputation. People see outsourcing as a threat to their livelihood, or a company “selling out” exchanging reduced costs for poorer quality of service. This is not always the case. Especially for small businesses who want better human resource service.

Reduces Compliance Risk

According to a survey by the Society for Human Resources Management, 22% of companies outsource HR functions to improve compliance. As a small business owner, you may be handling the HR functions of the company yourself or delegating them to an individual such as an Administrative Assistant or Office Manager not specifically trained in HR. This combined with the dramatic increase in regulations due to laws and guidelines such as the Family Medical Leave Act (FMLA), the Americans with Disabilities Act (ADA) and the Affordable Care Act (ACA)–just to name a few–can lead to mistakes. Some of which can result in lawsuits, fines and penalties.

Outsourcing human resources functions to highly skilled and trained HR specialists can significantly reduce the risk associated with them. They are familiar with these laws, experienced with how companies handle them and know what needs to be done to ensure compliance.

Outsourcing human resources for Chattanooga, TN

Reduces the Risk of a Bad Hire

As a small business owner, you might not have a lot of experience interviewing candidates or know the “red flags” to watch out for on a prospect’s resume or application. There are also interview questions that seem innocuous but are actually illegal (For example–When did you start working? Do you have any children?) and can lead to charges of discrimination, a lawsuit, or an investigation by the Equal Employment Opportunity Commission (EEOC).

A solid HR professional can weed out the candidates that are not a fit for the job or your company, saving you time and energy, and can advise you on what specific areas to focus on during the final interview where you ask the questions.

Outsourcing HR can also reduce the risk of missing something critical on a background check such as criminal activity, drug use, falsifying school or employment records, etc. Background checks take time to do them right and that is time that you might not have as a small business owner.

Ready to Reduce Your Risk by Outsourcing Human Resources Functions?

We are ready to guide you through the process. Just give us a call at (423) 777-4822, email us at or complete our simple online contact form to speak to a HR outsourcing solutions professional today.

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