Success in business is measured by its profitability. Success also depends on the ability to get employees to work together as a team. One of the hardest challenges faced by retailing business owners is searching for good employees. Even in a franchise for sale business, good employees and sales workers are hard to find. It takes time to recruit, interview and maintain a staff, which is reliable, trustworthy, and hardworking.
The good news is that there are human resources outsourcing businesses out there. According to the market research firm Dataquest’, this type of service is estimated at approximately $37.7 billion in 2003. Outsourcing HR is great advantage, as tasks like payroll, recruiting, training, employee manuals and handbooks, and compliance are eliminated from a small business owner’s shoulders, so he is free to focus his attention on the growth and development of his business.
Outsourcing is right for a business if it has fewer than 100 employees. Its advantage also lies on the price and the time given for retailing business owners to focus their energy on the business at hand. By streamlining HR efforts, both the employees and business owner will be assured that the business is on track and headed for great success. A person who has just bought a franchise for sale also benefits from outsourcing since they will be able to keep their expenses low.
Four basic avenues of business could be outsourced: payroll administration, employee benefits, employee management, and risk management.
Payroll administration covers payroll processing, tax planning and preparation including 1099, W-2 filings and payments.
Employee benefits include management of the workforce’s health care benefits. An outside source can recommend the best option in employer/employee contributions, establishing new hires, and performing cost analysis and provision for a solid solution to those health care issues.
Employee management can be outsourced, so the business owner does not need to do the recruitment, interview and onboarding of new employees. Some HR agencies provide the complete package for recruitment, while others only handle the head hunting of candidates.
Risk management looks after workers’ compensation, dispute resolution, safety inspections, employee policies, and handbooks.
Every retailing business owner must decide if outsourcing is a viable option for his small business. People who have just bought a franchise for sale should definitely outsource as much as possible in order to save money. Try the following cost analysis. Take the estimated costs of an outsourced program, compare it against the average salary and maintenance of an in-house HR director or staff then see if the total difference in savings is worth it. Find out if there is a considerable time loss, or an increase in production. If the answer is positive, then try outsourcing for a small period of time.