HR administration

HR isn’t really necessary, is it, when you only have a handful of employees?

That’s a question that many startups and newly formed small businesses ask themselves. They have limited resources: every bit of capital needs to go to their revenue-generating product or service; and with only a small team of employees, time is always crunched. Frequently, HR is seen as a job function that belongs to larger, more established companies, something that these small and new organizations will invest in “someday.” 

Previously, we wrote about the growth stages of a small business, illustrating how the priorities and challenges facing an organization shift as it grows and matures. Something else that changes along the way: how much money or resources to devote to various business segments, like HR. The answer to that question is different for every company, but even within a single company, it can be a moving target. It’s particularly challenging when you consider the following two points:

While there may be a lot of reasons businesses choose to outsource their HR functions with a Professional Employer Organization (PEO), these are the top five reasons startups use PEOs.
Small businesses need an edge when competing with larger companies for top talent.
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