It’s not easy being the owner of a small business, particularly since there are a lot of details to handle. You need to make sure your business keeps moving forwards, look for opportunities to grow, and make sure new and returning clients are happy. Handling just those tasks can take a lot of time and energy out of your day, and that’s why more small businesses than ever making the choice for HR outsourcing.  

It seems easy on paper, right? You just pick a company you like, sign on the dotted line, and then turn your attention to your business. Well…it’s not that easy. Sending HR tasks out-of-house might be a smart move, but sometimes problems can pop up if you’re not careful. Read on to learn a few issues you can sidestep if you opt to outsource your HR.

Ask For Credentials

Before you sign any paperwork and begin sending out work, you need to make sure the HR team you’re considering knows what they are doing. Ask for their credentials, how long they have been in business and examples of their work. Reputable companies should be willing and able to provide you with references. Conducting a brief interview will allow everyone to ask questions and get to know each other.

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Ask How Tasks Will be Done

Think all HR outsourcers do what they do the same way? When you send out your HR needs, don’t make assumptions about how things will be done. Be sure to give a detailed explanation of not only what you need, but also how you need it done. It can be helpful to provide an example along with your request. That ensures that everybody is on the same page and tasks are done right the first time.


One of the most maddening scenarios an HR outsourcing team gets stuck in is when a client says they need things done, “in a couple of days.” Does that specifically mean two days, or is it something different? When you’re communicating with your team, give them a deadline of when you need the work finished. If your deadline is unrealistic, they will say something. By keeping lines of communication open and expectations clear, you can prevent things from getting chaotic.


How much is it going to cost you to outsource your HR department, anyway? Many teams have established fees, and you’ll want to know what that is early on in the process. If the team you’re working with doesn’t have established rates, make a reasonable offer early on. You can do some research and find out how much it costs on average, then calibrate your offer based on what you can afford and what’s fair.


Next, let’s talk about schedules. You don’t have to be in contact with your HR team daily, but you do need to establish a timeline for when tasks should be finished up. Having said that, make sure both parties can reach each other quickly and easily if a problem arises. Plus, you’ll want to determine what your payment schedule is for your HR team.  


Finally, once terms have been agreed upon, make sure it all goes into a contract that both parties sign. This helps to reinforce your plans, make sure everyone stays on task, and provide legal protections.

Get in touch with The Medical Link for a consultation with our team of professional human resource managers.