When Small Businesses Should Outsource HR Duties

Jake Posey [email protected]

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As a small business owner, it may be difficult to employ a full-time HR person to hire and fire employees and properly oversee employment matters. This is why small businesses have several options to explore regarding human resources management, including:

• Make arrangements for “a la carte” services with a professional who is skilled in Texas human resource laws 
• Outsource key HR functions to a Texas business attorney
• Hire an experienced, in-house HR professional
• Have daily access to a general counsel lawyer for consulting about workforce requirements

Not every company needs to hire a full-time HR person; however, it will depend on the nature of the business and whether there is high turnover. If there is a need for constant employee orientation due to frequent new-hire and entry-level employees coming and going, an in-house HR specialist may be beneficial. If there is less frequent turnover, a business will find it financially beneficial to outsource their HR needs.

An in-house human resource professional can develop an employee handbook, create policies and procedures, and develop employee-related documents and agreements; however, a skilled Austin employment law attorney can do the same things and advise small business owners about employment law issues.

Not only is an HR professional needed in hiring and drafting correct employment policies and contracts, but he is required to know the laws surrounding terminating employees. Firing an employee can be a potential liability for the company if an employee isn’t terminated in the correct manner. Having access to an HR professional can be the most cost-effective way small businesses can get the legal expertise they need without having to hire a full-time HR manager.

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