What’s the Sign that Your Small Business Needs Help from a Human Resource Management Company?

Just because you have a small business to run does not mean that managing it is easy. Sometimes, your core business alone is already difficult to handle. Adding HR functions into the mix just will not help at all.

Just because you have a small business to run does not mean that managing it is easy. Sometimes, your core business alone is already difficult to handle. Adding HR functions into the mix just will not help at all.

Satisfactorily performing your company’s HR needs involves payroll, taxes, deductions, insurance, a lot of math, employee engagement, and a whole lot of strategizing.

Juggling all of these tasks can put a lot of strain on you, your workers, and your business. If you are seeing some or all of the following signs in your organization, it is time you contracted a reliable HR management company to take over your HR functions.

Nobody is formally educated or trained to perform HR functions.

It is admittedly quite rare for small companies to have formal HR departments and personnel. What usually happens is that the owner or a relative of the owner, who is untrained in HR, handles all HR functions together with other business-related responsibilities.

In fact, this may even be your business setting. However, this kind of setup can potentially bring other problems, the scariest of which are reporting inaccuracies. Such errors can cost you a lot in terms of money, reputation, and employee relationships.

If you see that you do not have anyone on staff who is specially educated and trained to handle HR, do not even attempt to move forward without asking for outside help.

Everyone is already multitasking.

Multitasking is common practice in small companies with lean teams. A lot of business owners are confident to jump right into this bandwagon, complacent that they can pull it off the same way other companies can.

What you need to understand is that, most of the time, multitasking works only when the tasks being handled simultaneously are more or less of the same nature. In that scenario, the multitasker utilizes roughly the same skill set, knowledge, and resources.

Unfortunately, what usually happens is that an individual tasked with purchasing and negotiating with suppliers is suddenly asked to help out with year-end payroll processing. The employee handling customer orders, who also coordinates deliveries, is suddenly working on insurance deductions.

Everyone is already working overtime.

Attempting to handle HR functions in house consumes a considerable amount of time because of two factors: lack of expertise and lack of appropriate and updated technology.

If you ask employees to do something they are not familiar with or educated or trained for, they will naturally take a while. There is a learning curve to follow, and these individuals are more prone to committing errors (and consequent regressions during the work process). Moreover, attempting to fulfill HR tasks manually obviously takes time.

Productivity is suffering.

Take a look at your books, and see if the same amount of input at Points A (then) and B (now) yield the same output. Yes? It looks like you have everything covered and you are good to go. Is it falling? Then something else is definitely keeping your employees busy, and it is robbing you of profit.

If your productivity is decreasing and everyone’s hands are already full, then you clearly do not have the opportunity to handle HR functions anymore.

You have history of getting penalized by the CRA, among others.

The Canadian government is very particular about compliance in terms of HR functions, such as payroll, taxation, and labor laws. Erring employers face stringent sanctions and steep penalties.

If you already have a firsthand experience of these punishments, then you are definitely in no position to try your hand at doing HR tasks again. This is the best opportunity for you to seek the help of a good HR service provider.

Investing in HR technology is not feasible.

Nowadays, no company should be running without a trustworthy and reliable HR information system (among other related packages) in place. These software packages make running your HR department a lot easier, faster, and error-free.

The problem is that these HR tools are costly. In addition, they need to be updated every now and then due to changes in legislation, rates, and more. As owner of a small business, you may think that the cost of these applications outweigh their reported benefits. This is understandable and probably even accurate in some businesses.

The good news is that working with an HR management firm allows you to take advantage of top-of-the-line software that are updated in a timely manner without spending as much as you would if you bought the software yourself.

You want to pay your workers via direct deposit.

If you have been paying your employees via paper checks, then you are surely already aware of the disadvantages of this practice. First, paper checks can and do get lost, damaged, altered, and counterfeited. These issues annually cost businesses tens of thousands of dollars.

Paying your workers through direct deposit lets you avoid these potential sources of problem. In addition, your employees will surely benefit from being able to get cash from their salary more conveniently, quickly, and securely than when using paper checks.

If you are attracted to the thought of switching to direct deposit, then you may want to look for an HR management partner right away. These firms can easily set up this payment method for you as they have the necessary paperwork, network, and know-how.

You’re always worried that you’re not doing things right.

Doing tasks that you are not trained for is naturally worrying. Have all approved time-off requests been plotted? Have the deductions been remitted? Wasn’t there a new law passed in some jurisdiction some time ago? And which province was that anyway? Working with a reliable HR management service provider wipes all of these worries out of your mind. The thought of having someone with the skill, knowledge, and experience at the helm of your HR department gives you peace of mind.


Fulfilling a small company’s HR needs is nearly as chaotic as running the entire business itself. If you attempt to take on it without the capabilities required, you risk putting unnecessary strain on your business and reducing profitability.

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