In the first part of this 3-part series, we discussed the many ways in which an HR department or person can add value to your company. Now that you know where an HR person can add value, you will want to consider if you need to hire someone or if software is the answer – or a combination of both. Here, we’ll spell out the pros and cons of each option to help you make your decision.

1. Hiring an HR Team Member

Before making your first in-house HR hire, you should ask yourself:

  • Should this person be part time or full time?
  • Should they start on a contract-to-hire basis so that you can make sure it’s a good fit?
  • Do you want someone who is more expensive but has created HR departments at companies before or has a lot of experience? Or do you want to hire someone cheaper who will take direction from you and/or other managers?
  • What is the most important area for them to have experience in: payroll/benefits, performance or recruiting?

2. Using HRIS software

You can also choose to use a Human Resources Information System (HRIS) software. Yes, there is software out there now that can:

  • Run payroll and all payroll compliance with it
  • Track time, attendance and PTO with employee portals
  • Provide benefits services of all kinds
  • Provide recruiting and performance management services

Some HRIS software even has on-demand customer service agents so that your employees (and you!) can talk or email with a real person if you have an HR question. Depending on your company culture, you might still want an HR person in addition to an HRIS, or you might want to hire someone to implement the HRIS on a project basis since that alone can also be a lot of work.

3. Use a PEO

If you want to outsource everything, you might consider working with a Professional Employer Organization (PEO). You should keep in mind that they will become a co-employer, but they also take over a lot of the tough paperwork and other tasks that would otherwise take up a lot of an HR manager’s or your time, like fighting unemployment claims, worker’s comp audits and so forth. A PEO also controls all of the aspects that an HRIS would control, such as payroll, benefits, employee onboarding and even recruiting.

About the author

Christy Hopkins

Christy Hopkins

Christy Hopkins, PHR, is a Human Resources consultant and writer at Fit Small Business. Her areas of expertise include recruiting, performance management, organizational change, and implementing HR systems. In addition to writing for Fit Small Business, Christy maintains an HR consulting and recruiting firm that boasts over 30 small business clients across the United States.

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