Running a business requires a dedication to the industry and the ability to compete within it. Once a business begins to grow, it starts to require more attention to details outside the core competency or function of the business. One of the things that has become an issue is human resources. While your staff literally is a group of human resources, most business owners know far more about what their business does, than about what a hiring process is or how to make sure that they are in compliance with regulations as they pertain to employing people.
For many business owners and managers, the requirements that human resource management places on them tend to add unneeded stress and take time away from their core functions. If they choose to hire employees to handle HR matters, then they must foot the bill for additional payroll, benefits, and sometimes even space to accommodate those employees.
One way to avoid this stress or the necessity of hiring a large HR department is to outsource some of the HR functions to a staffing agency. It makes sense if you think about it. A staffing agency exists to perform HR functions. They hire, stay on top of insurance and regulation and perform other HR functions, not as a required part of their business but as the business itself. They have the dedication to the staffing industry that many people in other businesses do not. This dedication allows them to perform most HR functions better than individual Human Resources departments.
Take the hiring process for instance. Individual HR managers take time to list jobs, audit resumes and applications, and bring people in for interviews. Hiring is an occasional part of their job, whereas it is a huge part of a staffing company’s job. They have more time to focus on coming up with the best interview questions and have more experience actually interviewing people, which often makes them better judges of candidates. Hiring is their business so it doesn’t have to be yours.
The biggest issue that HR departments have to deal with is compliance. To have employees in Arizona an HR manager must consider:
- Keeping payroll and related expenses within budget
- Workers’ compensation, the laws associated with it and making sure that their company has the right coverage at the best price
- Occupational safety and health standards that dictate what a workplace must have and how it must operate (although you’ll need at least passing knowledge of this regardless of how you source your staff)
- Youth employment laws
- The vast and specific employment laws
Not only do these issues take a sound knowledge base, but they also take time and money. If you choose to let someone else handle these issues for you, it can really help out. Staffing agencies that can provide you with temporary or even permanent staff have their operations set up around these issues. They can focus on them and streamline processes like hiring or constantly keeping up with changes in employment law. The ability to streamline means they can usually address these issues at less cost than businesses that focus on other things.
Less cost for them often means their customers save money when they use their employees. The can also buy larger insurance policies which can sometimes bring their costs down as well–yet another way they can afford to provide you with employees at reasonable prices. There is nothing wrong with not being able to outperform a well-run staffing agency; after all it is what they do.
Especially right now, as the economy seems it might be taking a slight upturn, why not save time and possibly even money by using a staffing agency? You can go about your business while they send over workers who have already passed a screening process. Using temporary labor is a great option because it allows you to see if your recent successes will last and allow you to bring on full-time staff. If you bypass temps and hire people on full time you might have to fire them in a few months. If they have worked for you long enough they may even qualify for unemployment benefits which can cost you in raised premiums.
Yet another example of the finer points of human resource management getting in the way of running your business. HR functions must be addressed, just not necessarily by you.