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7 Tips for Outsourcing Your Human Resources Department

By Special Guest
Gary J Wilkinson
August 07, 2018

When your business starts growing and you need to hire additional talent, this is an exciting time. With more people working in your company, there is more to think about. Every person is different and if you aren’t well versed in human resources, you might not know how to deal with some of the issues that arise.

Many startups decide that they want to have someone else take care of their HR department and find the best PEO service for their needs so they can focus on what they do best.  If you think this is what you need to do as well, make sure to read through these following tips to make the process as easy as possible.

#1 – Check Customer Support

When you are going to have an outside company handling your HR, you need to make sure that they have good customer service. If you don’t have access to them readily so you can talk over important issues, this is a red flag. You need to have quick access so that you know what is going on in your business at any given time.

Don’t make a decision too quickly so that you can see how the company works and responds to your queries. You want a long term relationship so it is important to see how well they respond and act upon your contact.

#2 – Read Client Reviews

It is important to look through reviews of past and current clients. Not only should you check their website to see what positive things people have to say about them, but also look on industry forums to see what you can find out about the company. It is better that you know about them before you decide to work with them than finding out something negative afterwards.

Even if you do find something negative, that doesn’t mean they are a bad company. That simply means that person did not find them to be a fit. If you have concerns about the review or comment, you can always ask the company for clarification on the issue to see if your concerns can be satisfied.

#3 – Check Their Legal Department

Laws are always changing and even if they weren’t, there many laws to know and since every situation is different, you have to understand how those laws play into the situation. If you don’t understand this, you need to make sure that the legal department of the PEO you are working with has a legal team that knows how to deal with any issues that might arise within your organization.

#4 – Inquire about Recruitment Practices

Since the new blood in your business is the lifeblood, you have to make sure that their recruitment process is up to your standards. There are many mundane tasks that have to be done throughout the process such as reading resumes, doing interviews and more. While you might not worry so much about what their process is, you want to make sure that they come out with the best candidates and that is why you need to find out more about their recruitment practices.

#5 – Understand Their Processes With Admin Tasks

More tedious but important work goes into admin tasks. Payroll processing, benefits, relocation planning, there is a lot to do for a HR professional and unless you have a big team, it can be a lot of work. If your HR department is overworked, you need to get help so that none of these important tasks fall between the cracks. Make sure that the company you will be working with has proper processes in place to take care of these things.

#6 – Know What They Do for Organizational Development

Having someone on the outside take a look at your organization can be a great help. While it is hard to see what is happening under your own nose, an objective eye can help you see where you can improve your culture and operations.


Oftentimes they will help you set up various systems for evaluation, workflow, executive compensation plans and more. Having to develop these system in house without experience could take a long time, but bringing in professionals to streamline the process, it can be done much sooner.

#7 – Conduct a Cost Comparison

You didn’t think that we would forget about money did you? Of course not. You need to look at your current model and compare it against the model that you are considering. If it takes a lot off your plate and allows you organization to run better without breaking the bank and going over budget, you might find this is a good solution for you as many other people have noticed in their businesses as well.

Speaking with key organization stakeholders to discuss their viewpoints and whether or not you want to move forward with this change is important.


When you are going through this process, you will probably find a lot of areas in your HR that there is room for improvement. The good news is that now that you know where you need to improve, you can work on it and get the help that you need to make those areas more productive and more cost effective.

Make sure you know what a PEO is and what you can expect from their services. Not all PEOs are created equally so make sure that you review each of your options and see if they are a good fit for your company and your specific needs.


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