Preparing to Scale Your SMB with Outsourced HR Services
The skills required of small- and mid-size business leaders are akin to tightrope walkers. They must always keep their eyes looking ahead while remaining ever-conscious of the present moment. Become side-tracked, and surely, they’ll slip off the rope.
No doubt there is much at stake while balancing future and present priorities – say nothing of being ready to pivot when necessary. Growing an SMB demands strong leadership, a strategic vision, and smart resource allocation. As you prepare your SMB for its next phase of growth, there are things you can do to streamline your efforts and realize success more quickly.
In this article, we’ll discuss some of the ways your SMB can maximize its resources while on the road to growth. Specifically, we’ll look at things like:
- What to do if you’re stuck in a no-growth cycle
- Preparing to scale up your business without falling flat
- How to cut costs while growing your SMB
- What to know about custom HR solutions
- Making the case for outsourced HR services
If you have questions about managing business growth, get in touch with our team at The OIS Group today.
Preparing Your SMB for Its Next Phase of Growth
Small- and mid-size business leaders must simultaneously live in the present and manage their ongoing daily operations while also having a strategic eye on the future. As you prepare your SMB for its next phase of growth, that means maximizing your team’s resources and outsourcing certain roles and responsibilities like HR services so you can free up your employee’s time and enable your SMB to scale more quickly.
Sometimes this goes swimmingly. Other times, it comes in fits and starts. If you find your SMB stuck in a no-growth cycle, it might be time to reconsider your approach.
Here are some clues your current HR strategy is not working and reasons your growth may have plateaued.
- High Employee Turnover – When employees start jumping ship, it can set off a cascading effect if you don’t take care to address the root cause of the issue. High turnover rates can be costly and disruptive, and they most certainly will affect the productivity and morale of those employees who do stay. Regardless of your turnover rate, exit interviews should be part of your HR processes so you can understand why employees are leaving. Sometimes it has to do with management practices. Other times it may be because your benefits package isn’t competitive. Armed with new feedback, you should work to implement lasting changes.
- Inconsistent Policies – Inconsistency can lead to confusion and unequal treatment among employees. If this goes unchecked, it can lead to resentment and distrust (say nothing of potential legal troubles). Ensure you have a comprehensive employee handbook that covers all necessary HR policies so you can fairly, consistently, and legally enforce policies.
- Compliance Concerns – Remaining compliant with HR, payroll, and tax laws is a full-time job. Your SMB can’t afford to slip up. If you’re struggling to keep up with HR compliance in-house, it may be time to turn to an outsourced HR solution for help.
How to Scale Up Without Falling Flat
Getting to the point where you are ready to scale your business is a key milestone for any SMB, but crossing the threshold of growth comes with a unique set of challenges. Expanding your operations, increasing your customer base, and growing your revenue are major endeavors that require a strategic approach. If you scale too quickly without a solid foundation or clear path ahead, you could risk significant setbacks. Here are a few tips to help you scale your business effectively and avoid common pitfalls.
Solidify Your Foundation
Before you start scaling, take a close look at your current operations. Identify what’s working well and what needs improvement. This includes evaluating your processes, systems, and team capabilities. Look for opportunities to optimize your business processes and strengthen your core workflows. This may mean investing in new technology to help free up your team to focus on strategic growth initiatives.
Grow Confidently with the Right Partners
In addition to increasing revenue, scaling a business requires you to carefully consider your internal resources as well. Careful management of employees, compliance with regulations, and staying on top of competitive benefits package offerings are critical to sustainable growth.
To successfully scale a business, it pays to have an expert partner at your side. A professional employer organization (PEO) is one such partner that plays a key role in helping SMBs manage their HR function and overcome potential challenges that often become prominent during growth transitions.
What’s more, teaming up with a PEO is a win for HR managers and your SMB. HR managers bring personalized, in-depth knowledge of the company and its employees, while PEOs offer broad, specialized expertise and resources. Together, they ensure comprehensive HR management, enhanced compliance, and improved efficiency. Read more here for other ways PEOs ease burdens for in-house staff and make growth seamless and efficient for the business.
Remain Agile During Growth
The business landscape can change rapidly, and flexibility is key to successful scaling. This is where leveraging outsourced partners can be especially beneficial. Be prepared to pivot your strategy if market conditions, customer preferences, or competitive dynamics shift. Staying agile during periods of growth will help you navigate challenges and seize new opportunities.
What to Know About Custom HR Solutions
While every employer needs HR services, not every employer needs every HR service offering. In fact, one-size-fits-all is generally not a good idea for growing SMBs. Instead, you should consider a custom HR solution that can be designed to address the unique challenges your business faces.
The most common types of HR solutions that are ripe for outsourcing and customization are professional employer organization (PEO), administrative services organization (ASO), and payroll services. To learn more about PEOs and ASOs, check out our guide to outsourced HR services.
5 Good Reasons Why You Should Outsource Your HR Services
Outsourcing HR can provide significant advantages to small- and mid-sized businesses. Here are a few reasons why your SMB should consider teaming up with a PEO, ASO or other custom HR solution.
- Cost savings – Hiring a full-time, in-house HR team can be expensive. Salaries, benefits, training, and office space for a full staff all add up. By teaming up with an HR partner or PEO provider, you’ll save money by only paying for the services you need. Plus, for the majority of SMBs, there’s inherent value in maintaining an in-house HR manager while also offloading many of the day-to-day tasks to an outsourced partner. When done successfully, HR managers and PEOs can team up to help the business grow in the right direction.
- Expertise and compliance – HR laws and regulations change frequently and many are state-specific. Outsourced HR providers stay up-to-date with these changes to ensure that your business remains compliant and reduces the risk of legal issues for your SMB.
- Increased productivity – Outsourcing HR tasks frees up valuable time for your team so everyone can focus on their core competencies, which is a more efficient and productive use of everyone’s day.
- Better benefits – PEOs have access to a wider range of benefits at more competitive rates than small businesses can obtain on their own. If you want to offer competitive employee benefits but find it financially challenging to do so, a PEO can provide access to cost-effective benefit plans that are on par with Fortune 500-company offerings. These benefits attract and retain top talent, which will in turn help your business grow.
- Scalability – Scaling a business often means adding more employees and expanding operations. PEOs offer scalable HR solutions so businesses can easily adjust their HR services to accommodate growth without the burden of managing additional administrative tasks.
Contact Us at The OIS Group Today
Strategically growing your small business requires a planned approach that balances efficiency with investment in growth opportunities. As consultants and PEO brokers, our team at The OIS Group offers clients a full review free of charge so we can find the right HR solution and other tools to help them succeed. We take a holistic approach to understand your needs, save time, and obtain cost-effective results so your business can thrive. Contact us today to schedule a consultation.
