Outsourcing human resources isn’t the right choice for everyone, but it is an option that all business owners should carefully consider as part of their overall growth strategy. If you’ve ever asked, “Should I outsource my HR?” following are six of the Twelve Identifiers we at Servant HR use to help prospective clients figure out whether they are a good fit for our PEO services. These indicators would be useful for any business owner considering working with a PEO. (To get the complete “Are You a Good Fit: Servant HR’s Twelve Identifiers” digital workbook, download it now for free.)

Human resources can be tricky. If you don’t make it a priority for your business, serious legal and financial repercussions can result. When an employee termination is bungled, a tax change isn’t heeded or payroll is mismanaged, that’s an HR issue. When you add a new employee, revise benefits or are faced with worker’s compensation issues, that’s HR too.

Not everyone needs to outsource their human resource services. If you own a small company that isn’t going to grow, and you don’t mind managing the paperwork and compliance issues that come with having employees, then you’re probably okay. If you don’t fit into that mold, read on to see if you identify with one or more of the following Twelve Identifiers.

Ask yourself these questions and — here’s the important part — answer each one honestly. If your answers show that you do relate to one or more of these scenarios, contact us. We would be happy to discuss your situation and see how we can help.

No. 1

You aren’t spending as much time generating revenue as you should be. As a business owner, your energy is best spent carrying out revenue-generating tasks. Getting bigger and better requires focus and time. If you need to put more energy into capturing market share, increasing sales or flexing your marketing muscle, you may need Servant HR. Would product or service improvements make you bigger

and better? Would your people be more efficient and happier if you had time to dedicate to their development? If you know that you could be more effective and work more in depth with clients if you only had more hours in your workday, outsourcing your HR might be a good option for you.


What are you not doing to improve your business or your life because you’re taking care of HR tasks? List 3 things:


Were you able to list 3 things? If so, you should consider outsourcing your HR.

No. 2

You have more risk than you bargained for. When you’re engaged with Servant HR, you get knowledge on demand. There are real deliverables, tangible tasks and constant access to HR resources and advice. There is also the peace of mind knowing that you aren’t solely responsible for all HR-related issues. As a “co-employer,” Servant HR partners with small and mid-sized companies through an administrative employment agreement. This arrangement makes Servant HR the coemployer of all of a company’s working staff. As a result, employment responsibilities are shared between Servant HR and the client. This allows the client to manage the work performed by employees and farm out the HR obligations. Servant HR assumes responsibility for a wide range of employer responsibilities and risks; pays and reports wages and employment taxes out of its own accounts; and administers clients’ benefits to employees. Are you taking unnecessary risks? Does co-employment sound smart to you?


Are you…

1. Relying on your own knowledge to make wage and hour decisions?

2. Assuming job descriptions are not necessary?

3. Assuming your forms and documents are sufficient to reduce compliance risks?

4. Under the belief that your “good relationships” with employees are sufficient to eliminate risk of lawsuits?

If you answered “Yes” to any of these questions, you are assuming too much risk as an employer

No. 3

You want to be a top employer. Your internal and external audiences know that you make a high-quality product and provide a great service, but what about your reputation as an employer? Take a look at how your employees characterize you and how current and potential clients describe you as a leader of your team. Is your business considered to be a great place to work? Managing administrative HR tasks by yourself can give the impression that you aren’t as professional as you should be. Correct that false impression.


What do others think about you as an employer? List 5 adjectives:


If these answers aren’t what you want to hear, you should consider outsourcing your HR services.

No. 4

You manage multiple vendors who handle separate HR-related services. You’re proud that you are big enough to need all of this help, but managing relationships with more than one vendor isn’t worth the hassle. Streamlining not only simplifies the situation, but it also can help you identify areas that have been falling through the cracks.


What services and areas of expertise are my HR vendors providing?

If you can’t thoroughly and confidently answer this question, that’s a red flag.

No. 5

You aren’t doing what you should when it comes to worker’s comp. This is a big one. If one of your employees gets hurt on the job, are you prepared? Do you want to carry all the risk if you aren’t completely sure of your preparedness? With a barrage of forms, compliance requirements and law changes, worker’s compensation management and reporting is best left to professionals.


What are you doing when it comes to worker’s comp?

If you can’t thoroughly and confidently answer this question, that’s a red flag.

No. 6

You can’t answer your employees’ HR questions. As your company grows more sophisticated, so do your employees. Can you answer the questions they are asking, or are you wasting time tracking down answers that you’re only vaguely sure are accurate? Your workforce requires a more sophisticated process and sound HR knowledge.


1. What is the IRS’s differentiation between employee and independent contractor?

2. When is an employee appropriately considered salary and exempt from overtime?

3. What is enough documentary proof to terminate an employee with minimal legal risk?

4. What is the difference between PTO and vacation or sick time?

5. What criteria do you use to prioritize employee benefits decisions and compliance?

6. How do you remove a long-term employee with integrity?

7. What are employers’ federal, state and local reporting requirements?

8. How do you discipline employees without setting precedent that ties your hands in future situations?

If you can’t thoroughly and confidently answer these questions, that’s a red flag.

Congratulations! You are halfway through this self evaluation. Don’t lose your momentum. Download the complete “Are You a Good Fit: Servant HR’s Twelve Identifiers” digital workbook for free now.


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