How to tell which human resources services are right for you

There is more to human resources than hiring, firing and employee payroll. There are regulations and compliances that must be met in order to avoid the risks of fines, lawsuits and other costly repercussions. Your human resources company should provide all the services needed to allow you the freedom to move away from administrative duties and focus more on the success of your business.

Different HR companies will offer different HR services. When picking the company that is right for you and your business, be sure to pick the one that offers the services you need, whether offered bundled together or individually to meet your needs.

There are numerous factors to consider when it comes to establishing, or growing, the human resources services at your company. Perhaps you are a startup company and have very little knowledge of what is even necessary for an HR department. Or maybe your company is rapidly expanding and you are struggling to keep up with all of the human resources regulations. No matter what type of business you have or people you employee, it is essential to have the human resources services in place to ensure that you are always in compliance with employment laws and regulations.

If you are a startup on the verge of hiring your first few employees, your focus should be on finding the top candidate for each position. But before you even start interviewing potential employees, you should have a human resources guide in place. Without one, you are at risk for HR complications later, as well as a loss of credibility with your new employees. Some human resources services to consider are proper job descriptions, employee handbooks and a benefits plan. You need to make certain you have laid out your company’s PTO and holiday policies, as well as maternity and other leave policies.  It is vital to have all of these potential issues covered well before you start the interviewing process.

Once your business is established, there are many further human resources services to consider. The Fair Labor Standards Act establishes minimum wages, overtime pay, recordkeeping and youth employment standards affecting employees. It is important to understand who is exempt and eligible for overtime pay. Past the day-to-day operational tasks, human resources services include employee retention and termination, pension administration, disciplinary issues and sexual harassment claims. A human resources company can help mitigate the effects of various employee relations issues like unemployment compensation claims and termination assistance. Counsel may be needed to help limit the risk and expenses for your company, should your company face a considerable downsizing.

There are a number of questions you should ask yourself when assessing whether you are prepared for all human resources issues. Including, have you considered worker’s comp? Many employers do not think about the consequences should an employee be hurt on the job. Issues like these come with a barrage of forms, compliance requirements and ever-changing laws. Human resources services such as these, should be left to an HR professional, in-house or otherwise.

Other questions you may be asking yourself that can be answered by a human resources professional are:

  • What is the IRS’s differentiation between employee and an independent contractor?
  • When is an employee appropriately considered salary and exempt from overtime?
  • What is enough documentary proof to terminate an employee with minimal legal risk?
  • What is the difference between PTO and vacation or sick time?
  • What criteria do you use to prioritize employee benefits decisions and compliance?
  • How do you remove a long-term employee with integrity?
  • What are employers’ federal, state and local reporting requirements?
  • How do you discipline employees without setting precedent that ties your hands in future situations?

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