As small businesses grow, owners and managers begin to realize the frustration of spending time on HR administration. Dealing with payrolling, talent management and benefits can take up 40 percent of a business owner's workday, according to Entrepreneur magazine.
Many companies are outsourcing HR services to outside companies that specialize in administrative work, recruitment and other tasks.
"Most small businesses are under 25 employees, and that means the owner is the most productive, is critical to the success of the business, and has to get out there and generate sales and products," Milan Yager, president and CEO of the National Association of Professional Employer Organizations, told the magazine.
By choosing an external service provider, business leaders are able to focus on other responsibilities.
More employers in Ohio are seeking services from professional employer organizations, according to Crain's Cleveland Business. In addition to easing business owners' workload by handling everything from payroll processing to workers compensation, these companies are employing large amounts of people across the country.
Companies considering investing in a partnership with an HR administration provider should examine some popular reasons business owners give for seeking these services. Not having to deal with healthcare reform complexities and other government regulations is a commonly held sentiment, as is not having to handle tax changes.
