16 · SBJ.NET MAY 6-12, 2024 FOCUS SMALL BUSINESS after year and organizations that send their people and their newer managers every semester,” said Coffman. “I think just by consistency and sometimes from years of sending people to us speaks to how impactful it is for business.” For owners who prefer not to handle HR matters themselves, they have the option to outsource their HR departments by hiring professional employment organizations and administrative services organizations. Outsourcing HR functions can save owners up to 27% in HR-related costs, according to the Society for Human Resources Management. HR Advantage Inc. is a human resource consulting firm based in Springfield that offers the functions an in-house HR department might need. “We excel in the space of small business as oftentimes smaller businesses are not in the space of having a full-time or regular part-time HR professional on their payroll,” said Business Development Director Elizabeth Hurst. “We are an ideal solution for smaller businesses as we provide the value of having regular service and support during critical times and can buffer complicated matters associated with having employees.” A dedicated HR contact, whether inside or outside of the organization, is important to employees. The Secure Data survey found 64% of employees say their boss has a hand in HR operations and 24% feel uncomfortable about it. Hurst said her company helps take over all the major responsibilities of hiring and handling in-house matters to reduce the stress an owner or employee might feel if handling everything themselves. They also offer a recruitment division that helps employers find and hire a full-time HR person. The national average cost of outsourcing is anywhere between $45-$1,500 a month depending on the amount of services provided, according to Complete Payroll Solutions. Hurst believes as a company grows, the owner needs to hire an HR handler that can take on those responsibilities with a professional background. “We do see employers reaching out around that 10- to 25-employee mark where they’ve grown into a need for processes and guidance,” said Hurst. While outsourcing HR functions through a professional employer organization is an option for small-business owners, Wesley Scroggins, a professor of management and human resources at Missouri State University, believes small businesses should always have an HR generalist that understands a business or has managerial skills. He notes that it is important to align HR function with the overall organizational function. “I’ve never been a big fan of outsourcing your HR functions because often when you outsource your HR functions to a third party, you lose some degree of control over those functions,” said Scroggins. “You want to use HR strategically, and it needs to be a really good fit with your organization.” Lindsay Bauer, director of people and culture at Keep Supply, an industrial equipment supplier, believes that outsourcing HR is fine until a small business reaches the 50-person mark because as a company grows, it is important to hire someone who understands and protects the company culture. “You want to have someone who values your business values and goals,” said Bauer. “It is pivotal for us to have an internal team because we are driving the scale of culture that we have at Keep Supply.” Bauer started her career with Keep Supply as an HR consultant but was hired full time in 2022 when the company reached 41 employees. The company has since grown to 83 employees. Scroggins notes that good relationship management and building relationships at work are critical competencies. “The HR person really needs to know how a business functions, what makes that business successful, and how it operates,” said Scroggins. “They need to be familiar with that and good HR people are.” • Balancing: Experts say aligning culture with human resources is worthwhile endeavor Continued from page 9 Command Family Medicine ATTENTION: BUSINESS OWNERS Minimize time off for employees with sick children by offering instant access to their PCP via phone, email, or text with same or next day appointments. Ensure superior care at an affordable price. COMMAND FAMILY MEDICINE Serving patients in Springfield and Branson command.md | 417-351-2900 12:24 PM My son fell off the slide at school. They are worried his arm might be broken. What should we do? We have an opening at 1:30 this afternoon. We can x-ray his arm here at the office today. LOCALLY OWNED AND OPERATED BY DOUG & ANDREA WINDSOR © 2023 Five Star Painting SPV LLC. All rights Reserved. Commercial & Residential Painting 417.720.2376 FiveStarPainting.com 80% Small-business owners handling HR with no experience 10 Employee threshold when the U.S. Chamber of Commerce recommends hiring an HR professional Elizabeth Hurst: Companies begin reaching out for HR services when they reach between 10-25 employees. 27% Savings to business owners when outsourcing HR
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