4 ms·
I don't know why outsourcing HR seems like a good idea for anyone. 40 employees, 100 bucks for each every month, that's the salary of an HR manager. Don't do i
by Iv 14y ago
I don't know why outsourcing HR seems like a good idea for anyone. 40 employees, 100 bucks for each every month, that's the salary of an HR manager.
Don't do it yourself if it is not your focus, but don't outsource it. You need someone in-house who can not only manage the administrative paper works but also give you advices about what's best for your own company.
- sudonim 14y agoThe median salary for an HR Manager is $78,000 according to glass door .http://www.glassdoor.com/Salaries/hr-manager-salary-SRCH_KO0,10.htm http://www.glassdoor.com/Salaries/hr-manager-salary-SRCH_KO0... You're looking at 65 employees at $100 a month to make that pay off. For most companies between 4 and 65 people, outsourcing HR is a big headache reducer. Having worked at companies with outsourced HR, I can tell you it's not amazing, and it could be way better. But HR is a cost of doing business, and not something you should be trying to do yourself as a young business.
- shuzchen 14y agoDon't forget that the cost of an employee isn't just their salary. Insurance, health, and other benefits all add up (I think I read somewhere up to 30% more), not to mention that you now have another person to manage.
- cbsmith 14y agoA funny thing too: having an HR manager tends to automatically increase this cost. ;-) NOTE: Not a strike against HR, just reflecting a reality that salary figures for HR people probably disproportionately understate their overall cost. HR people are much more unlikely to work at a company where the only compensation is salary.
- gk1 14y agoThe actual cost of that HR manager to the company would be much greater than their salary if you consider all the overhead. Even if you manage to find someone for dirt-cheap, you'll still need an internal system for managing everything, which won't be free.
- ryancarson 14y agoYou should add 30% to any salary to account for benefits.
- jonknee 14y agoWould an HR manager be better? You can host your own email servers for less than Google Apps for Business, but it's not something I would recommend. Update: even if you do hire some flesh and blood to sit behind an HR title, they are still most likely going to outsource things like payroll. Companies like Paychex are huge because they make sense and save a lot of money.
- thedillio 14y agoAgreed. Keep in mind the liability aspects as well. From what I understand, payroll mistakes are not easily forgiven. That is part of the reason there are so many HR outsourcing companies.
- MattGrommes 14y agoOne of the benefits of an outfit like Trinet is that since they manage so many employees they get good prices on benefits. Trinet has all kinds of discounts they offer employees on buying computers and lots of other stuff. It's basically taking advantage of economies of scale for HR.