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Outsourcing Human Resources: When Your Small Business Needs to Consider It

Outsourcing Human Resources: When Your Small Business Needs to Consider It

Buzz Marketing Group, a Philadelphia-based viral marketing and research firm, had a big year in 2012. They celebrated their 16th year in business and landed huge clients like Dell, driving their yearly revenue up 112%. The ability to handle this influx of growth, BMG needed to do something.

Founder Tina Wells was getting overwhelmed with the amount of time she was spending on human resources, instead of developing her business. Wells says that she spent almost 8 hours per week managing tasks like updating employee handbooks, tracking vacation time, and creating job descriptions.

Wells had also hired five of her family members, including two siblings, over the course of the business. Wells says that family members had the misperception that they should receive special treatment within the firm, and it created unwanted tension.

The Solution – Outsourcing Human Resources

Wells decided to expand her contract with Paychex, a third-party HR and payroll firm. Buzz had been working with Paychex to manage its payroll since 2011, and decided to hire Paychex to manage its human resources department in 2012. The company’s handbook went from 20 pages to a staggering 130 pages, creating detailed job descriptions, coding all the firm’s policies, and keeping track of employee performance.

With a human resources system that was completely online, employees were able to easily access company forms and manuals, and keep track of their own paid time off. After expanding their services to take on the additional HR roles, Wells says roughly 1% of the BMG budget goes to Paychex.

Source: Entrepreneur

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