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Questions to Ask When Choosing an HR Outsourcing Company

Working with a third party to handle your HR needs can free you up to focus on the things that really matter – like growing your business.

Written By: Editorial Staff


Working with a third party to handle your HR needs can free you up to focus on the things that really matter – like growing your business. But before you sign up a top HR company, here are some smart questions to ask them (and yourself).

Does the company work with small businesses?

If the answer to the question above is yes, then how small a company will they work with? If you are a staff of one or two people, you want to make sure that you’re well taken care of. And only those HR companies that cater small business will be able to give you that pledge. You want to work with a company where your business is just as important as the Fortune 500 client next door.

What types of Payroll services does the HR provider offer?

You want to work with an HR company that can handle taxes, health insurance and 401K deductions, direct deposit, check mailing and more! Make a checklist of everything you want them to execute, then ask away!

What type of recruiting does the company handle?

If you are going to need C-Suite Level executives down the road, make sure your potential HR provider has experience at that high level. Consequently, if you are going to need a large number of temps, check that your HR firm doesn’t only hire those who dwell in the corner office. If the HR outsourcing company doesn't specialize in recruiting, keep recruiting software in mind for assistance in hiring quality talent.

How are costs handled?

Although HR companies can save you a lot of money in the long run, you still need to know how much their services will cost you. Ask the HR company representative about how they bill their clients; Are there monthly contracts or retainers involved? Do they work on an hourly or per project basis? The more you know about billing procedures, the more accurately you can set your HR outsourcing budget.

 

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