CHICAGO (TheStreet) -- There are certain milestones all small-businesses owners reach as they grow from a one-person startup to a multi-employee operation. The moment they realize they can no longer function effectively from their home office in the basement. The moment they make their first hire. And the moment they realize they just aren't equipped to handle all the paperwork and regulations that come along with building a workforce.
Human resources departments are a must-have for large corporations, but having a dedicated HR pro is a luxury for most small businesses. When there are only a handful of employees, you hardly need someone tending to their needs full time. But as small businesses grow, their needs change. A dozen new employees may need to be hired on short notice, which means crafting job descriptions, determining salaries and designing training procedures. Wouldn't it be great if you could bring in an HR expert to handle it all?
You can. Many human resources functions lend themselves to outsourcing, allowing small businesses to pay for just the services they need rather than keeping a full-time human-resources specialist on staff. Payrolls, for example, are often handed off to outside firms; industry leader ADP (ADP) processes payments for one in six workers in the United States. Employee benefits can also be handled by an outside vendor, saving business owners the hassle of sorting through mind-numbing health care plans.
One solution that has been growing in popularity over the past decade are professional employer organizations, which operate on the concept of "staff leasing." The PEO provides a dedicated human-resources point person for your company, who works in your offices, handling all the financial and legal aspects of employee relations.The PEO you've contracted with then becomes a "co-employer" of your business's workers. Legally, that company (and, by extension, the HR specialist who works in your office) are responsible for employment-related services and liability issues such as risk management, payroll and tax compliance. The way such arrangements are structured is intended to be long term. You don't hire a PEO for a few weeks to set up a human-resources system and then leave; they stay on as the business grows (or until it is big enough to justify hiring an in-house HR specialist).
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV