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Outsourcing HR for Startups

Posted by Kanika Sinha

April 9, 2018

Outsourcing is the secret weapon for startups. It’s part of an effective business model, and one that can help you succeed.

While there are several areas in which you might find outsourcing beneficial, let’s look at outsourcing HR as this is one area where it’s definitely a good idea.

You already know that growing your startup is an exciting time as well as one that leaves you wearing many hats.

The good news is that with outsourcing, you don’t have to do everything. When you outsource your HR, you can take care of growing your company.

Outsourcing HR Services Helps You Grow

When your HR duties are being handled adeptly by your outsourced team, you are free to grow your company.

Your outsourced human resources team is uniquely qualified to handle any of the following:

  • Creation of your company’s processes as well as your policies.
  • The creation and management of your Employee Handbook including making sure staff understand and abide by it.
  • HRIS Set Up – this is your Human Resource Management System which is the HR software that combines your systems and processes to easily manage human resources.
  • HRIS Maintenance – maintenance of your management system.
  • Payroll – outsourcing this task provides you with extra time in your work schedule.
  • Benefits Administration – outsourced staff can take care of setting up and managing your employees’ benefit programs.
  • Exits and Terminations – no one likes to handle this, so your outsourced team does the heavy lifting for you.
  • Statutory Compliance – there is a legal framework that your business must operate within with regards to the treatment of your employees. Your outsourced team makes sure you comply with labor laws.
  • Performance Management – employee reviews take a lot of time. So, when you hire an outsourced team for your HR, they conduct your performance management reviews, so you don’t have to. It also allows a non-biased third party to take care of the difficult reviews.

Other Benefits of Outsourcing HR Services for Startups

You’ll find more benefits to outsourcing your human resources tasks that include the following:

  • You reduce costs by using outsourced help to handle your human resources.
  • Your liability is reduced because an outsourced team is up-to-date on the latest laws and regulations when it comes to employment.
  • Outsourced HR gives you access to the best in IT. Outsourcing firms usually employ state of the art technology that grows right along with you. This means that your HR can scale with you, and you don’t need new staff to accommodate your growth.
  • Your outsourced team is also uniquely qualified to assist with your hiring and onboarding. They can also make sure you have the best benefits packages to attract the strongest staff. This means you attract and retain stronger talent because someone is dedicating their time to managing this duty.
  • You can expand cross-borders with little problems because your outsourced HR team is also well-versed in operating procedures nationally and even globally. You don’t have to worry about tax laws and regulations if you want to hire outside your state.

Final Thoughts

The digital age and advances in technology have made it easier for startups to grow than in years past.

This progression in technology also means that startups have access to professional help without having to pay a full-time salary and benefits.

While exponential growth is the goal for most startups, problems arise when companies scale so quickly they can support themselves. Adequate preparation is a must.

This is where outsourcing your HR comes in. Let the professionals handle your human resources so you can focus on what you do best.

By engaging a third party to handle your recruiting, training and onboarding, policy training and enforcement, payroll, benefits packages, performance management and terminations, you are setting your startup on the road to success.

Are you a new startup ready to succeed? Are you looking to get your new business off the ground and watch it rise to success? We are here for you. We can help answer your questions and guide you through the process. Outsource your HR duties, finances, payroll and more to us. Contact Escalon today to get started.


Kanika Sinha
Kanika Sinha

Kanika is an enthusiastic content writer who craves to push the boundaries and explore uncharted territories. With her exceptional writing skills and in-depth knowledge of business-to-business dynamics, she creates compelling narratives that help businesses achieve tangible ROI. When not hunched over the keyboard, you can find her sweating it out in the gym, or indulging in a marathon of adorable movies with her young son.

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