This difficult economy creates critical challenges to the small business. In the face of increasing costs on all fronts, combined with declining markets in the ace of a recession, many small companies simply can’t survive unless they rein in the costs of non-revenue producing back office chores that eat up a considerable amount of employee time if done in-house.
Added to the problem is an increasing amount of regulations following Sept. 11. For example, in Arizona, everify is now a tightly enforced law, requiring employers to verify the eligibility of all workers or face stiff state penalties. Small companies need to be able to control their costs yet process an increasing stream of paperwork. Many small businesses are realizing that the economic advantages of outsourcing their HR consulting have become a necessity for survival.
Arizona everify is a time-inclusive procedure that small businesses can’t afford to ignore. The Arizona Legal Workers Act requires employers to verify the eligibility of all Arizona workers, facing suspension or a possible loss of business license if ignored. This is an added chore for the small company, who would otherwise need to dedicate in-house staff that adds further costs to an already over-strapped budget that struggles to meet the demands of a challenging market. However, small companies can hire this service out to an outsourced HR consulting company.
Human resources are an integral piece of the strategic planning of a company. Hiring a full-time human resources manager is vital yet often too costly for a small business, especially in the face of a global recession. The increasing regulation demands, however, make this role absolutely needed in the small business world. Small businesses can adequately protect themselves and fill all legal requirements by hiring an HR consulting Management Company. Such a company handles payroll, workers comp, and safety compliance and audits.
Arizona features complex regulations and laws that can be a full time job for a small company to manage. By hiring an outside company that specializes in these regulations, small companies can legally protect themselves, mange payroll and workers comp issues for a cheaper cost than hiring a fulltime employee to deal with it all. Needs may differ from region to region, as well as city to city. A professionally outsourced HR consulting team can provide the same expertise at a cheaper cost, adequately protecting the rights and interests of small businesses without a large amount of overhead.
In addition to being familiar with the regulations of a particular area, an outsourced HR consulting company also needs to be familiar with the languages of the area. The United States features a number of different languages, each varying according to the specific region. It’s critical that the consulting company be familiar with the languages in the area it serves. Speaking Spanish is often every bit as important to a team as being able to translate government regulatory code.
Small businesses are realizing the power of an outsourced human resources team in cutting costs while adequately meeting the regulatory demands of the industry. Indeed, outsourcing these services may spell the difference between survival and bankruptcy.
bout the author:John Rico is the director of human resources for National PEO, a professional HR Consulting team that helps small businesses meet their resource needs for an efficient cost. His team helps navigate small companies through the Arizona Everify process, making sure they are legally compliant without costing the company too much cost in overhead. He can be reached at 480-429-8098. His office is located at 4800 N. Scottsdale Road, Suite 2000, Scottsdale, AZ 85251.