The Benefits of Fractional HR for Small Businesses
The struggle is real for small, geographically dispersed companies with no internal HR support. Read more to learn how Fractional HR can help and what to look for in a Fractional HR Partner.
In today’s vibrant and competitive business ecosystem, small growing companies often find themselves grappling with unique HR management challenges. From recruiting top talent and understanding labor laws intricacies to managing employee performance and morale, the spectrum of responsibilities can seem overwhelming, especially for smaller organizations that are geographically dispersed and have various state laws to deal with.
The bad news is that HR complexities for U.S. employers of every size are here to stay. New regulations and compliance requirements continue to emerge, like the new I-9 compliance requirements hitting this summer and the continual state-driven pay transparency laws impacting small businesses this year.
Increasing HR Complexities
Changing employment laws and regulations can create a significant burden on every organization, especially small businesses that are running lean, often without a dedicated HR Resource.
This brings to light a challenge our recent client had, like many emerging tech companies during the pandemic, our client found themselves with a geographically dispersed employee base – and no internal HR support to manage compliance, onboarding or the day-to-day.
Like many other companies operating on a bootstrapped budget they were trying to manage HR internally but understood they didn’t have the knowledge or the time needed to build a solid HR foundation. Thus an introduction to Hire Ventures and a call with our Founder Teresa Murphey began the relationship at a critical time. They had added a number of new employees and the leadership team was struggling with a payroll system implementation and preparing for an upcoming benefit renewal.
Understanding the Concept: What is Fractional HR?
This is a perfect scenario in which fractional HR makes sense, we were able to step in, do the heavy lifting and the work to get them on the right path. Fractional HR offers small organizations the ability to have senior-level HR support on a part-time basis, to take all of the HR tasks and initiatives off your plate.
With this client, we were able to quickly finalize the payroll implementation and setup, as well as develop a HR Roadmap ensuring HR initiatives and deliverables were aligned with company goals and growth plans.
We started with an HR Audit and Organizational review, to identify critical HR needs, which are often around hiring and onboarding, performance management and crafting a new employee handbook.
Fractional HR Services offer smaller companies a solution to manage their teams with the benefit of having an HR professional on staff, but without the cost of a full-time hire.
Strategies for Aligning HR Goals with Business Objectives
Having an HR partner in your corner is more than the basics, a good HR partner can position your organization for scalable growth. This covers the HR fundamentals plus working with leadership to develop and deliver on the HR Strategy. This should include:
Creating a modern performance review processes
Designing onboarding that works
Building out employee engagement policies
These are the kind of HR practices and programs that keep your people engaged and on a career path where everyone wins!
Small business owners deserve the peace of mind of knowing that HR is being handled by the pro – so they can focus on what they do best, running the business!
To learn more about our Fractional HR and our team, connect with us today!