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# 5 Pros and Cons of Outsourcing Small Business HR
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## 5 Pros and Cons of Outsourcing Small Business HR
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5 Pros and Cons of Outsourcing Small Business HR2020-06-082020-06-08 Recruiting & HR
Fast-growing businesses need the ability to hire and onboard new employees quickly. Too many small businesses invest hours on a new hire, only to slowly discover the person is not the right fit.
What if you could save yourself that time and effort *and* hire the right person *and* free yourself up to focus on strategy instead of paperwork? Those are a few of the benefits of partnering with an HR expert, but many small business owners have reservations about outsourcing HR functions.
This post will cover the ins and outs of outsourcing human resources: pros and cons, how it works, and when it’s right for your business.
## Human Resource Outsourcing Examples
What does outsourcing HR look like? It depends which functions you choose to outsource. Recruiting is the most commonly outsourced HR function, but HR professionals also offer services like:
* Customized employee handbooks
* Orientation materials
* Performance management documents and assistance
* Job descriptions
* Performance reviews
* Help with termination and onboarding
Human resources experts can be consultants, firms, or companies. You might choose to work with an HR representative on an as-needed basis, or you may decide to outsource all human resources responsibilities. It’s all about finding the right match.
## 5 Pros of Outsourcing HR
### 1. Free up your time to focus on strategy
Managing human resources is a time-intensive process. Even just bringing on a new employee involves:
* Writing job descriptions
* Filtering resumes
* Conducting multiple interviews
* Onboarding and training
* Crafting agreements and contracts
By working with an experienced HR professional who offers recruiting services, you have more time to focus on big-picture initiatives like operations, productivity, and leadership.
### 2. Gain value and save money
While working with a professional comes with additional overhead costs, hiring the wrong person can result in much greater losses. In 2010, Tony Hsieh, CEO of Zappos, estimated his own bad hires to have cost the company well over $100 million.
The right hire is someone who:
* Possesses the skill set you’re looking for
* Has a passion for the business
* Fits within the culture of your company
Outsourcing your HR to a specialist increases the chances that your employees will add long-term value to your company.
### 3. Greater expertise
As HR professionals, our specific skill set lies in employee recruiting, hiring, orientation, and performance management. We also have a network of industry resources and a database with excellent candidates we can call on. Our expertise relates to:
* Employment trends
* Recruitment practices
* Job knowledge
* HR industry standards
### 4. Better productivity and morale
Good HR leads to happy, motivated employees. Conversely, a bad hire can have a lasting negative impact on current employees who invested time and energy into training someone new. It can be frustrating and exhausting to find they have no future with the company.
Investing in HR allows you to cultivate an environment where employees are committed and productive.
### 5. Risk management
Running a business comes with inherent risks. Every business should be prepared for an unexpected workplace accident or legal dispute, even if such an event seems unlikely. Outsourcing HR functions can ensure that:
* Policies are in place to protect your business, including an 
* Your company is handling any issue legally and within employment law guidelines
* You are in compliance with the latest employee regulations, tax issues, and OSHA requirements
* Your employee handbook is comprehensive and legally sound
## 5 Cons of Outsourcing HR (and How to Overcome Them)
### 1. Choosing the wrong HR professional
This is an understandable concern. Just as hiring the wrong employee damages profit and productivity, so does choosing the wrong HR company. Follow these steps to find the right fit:
1. Define HR’s role in your company. What does an HR professional need to achieve for you?
2. Decide which HR functions you want to outsource and which (if any) will remain in-house.
3. Make a list of questions for all the HR companies you are considering.
4. Reach out to one or more of the HR company’s current clients as a reference.
5. Choose an HR professional who knows how to listen and understand your business goals and strategic direction.
6. Make sure they are able to tailor your HR package to the specific services you need.
### 2. Losing the human factor
Many small business owners worry that outsourcing will depersonalize employee interactions. The truth is, if you choose the right HR partner, this will not be an issue. We can take responsibility for time-intensive tasks, like making performance review templates and assembling onboarding packages, saving you hours of valuable time that could be spent interacting with employees.
We also offer coaching and consulting on HR-related issues so you can get the most out of meetings with your team.
### 3. Additional overhead costs
Outsourcing HR sometimes comes with an initial investment. For the vast majority of small businesses, the value added more than makes up for the additional overhead cost.
Hiring an HR professional can be very affordable depending on the HR company’s fee structure. Some HR consulting firms charge by the employee, by the month, or require a minimum 1-year contract. While others charge hourly fees as needed, or on a project basis, which can cut down costs especially for smaller companies.
Rush Recruiting & HR uses an hourly fee structure with no contractual obligations or minimums. See our related blog post: 
### 4. Delayed communication
Many business owners worry that, once they outsource HR, addressing employees’ problems will become a slow, convoluted process.
This is why it’s so important for HR professionals to be responsive and proactive. By staying engaged with your business and making use of virtual communication tools, good HR professionals can address your needs quickly.
### 5. Fear of losing control
Many business owners prefer to stay in control of day-to-day operations. For some businesses, the in-house approach makes sense, but for most, it eventually becomes unmanageable. As your business grows, delegating important tasks to specialists gives you *more* control over other domains where you can have the greatest impact.
At Rush Recruiting & HR, we take the time and energy burden off your plate, but you are still the decision maker. Take recruiting, for example: We handle the arduous search and resume review process, and then present you with the top candidates. This ensures you have all the resources you need to make important decisions.
## How to Know When It’s Time to Outsource HR
When should you outsource HR? In general, outsourcing HR makes sense when outsourcing becomes more efficient than trying to complete HR tasks internally. This is typically when your HR needs become specialized enough that no one in your company has the time, skills, and expertise to complete them. It’s possible to *ease* into Outsourced HR by choosing to outsource a specific project or specialized task. Examples include:
* Updating or creating an employee handbook
* Developing job descriptions
* Winnowing down a long list of job candidates
* Handling employee conflicts with minimal workplace interruption
 can help you decide if it’s time to consider outsourcing your human resources responsibilities.
### Looking for an HR professional who knows how to deliver results?
Since 2009, Rush Recruiting & HR has provided award-winning services throughout the Portland metro area. We would love to help you with your business’s HR needs.  today for a complimentary consultation!
Lori Rush is the founder and President of Rush Recruiting & HR. In addition to having over 20 years of experience and being certified in STAR behavioral interview techniques, Lori is an active member of the Home Builder's Association (HBA) and Oregon State University Alumni Association Board of Directors.
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# Pros and Cons of Using a Personality Test for Hiring
 »  » Pros and Cons of Using a Personality Test for Hiring
## Pros and Cons of Using a Personality Test for Hiring
 In , 
Pros and Cons of Using a Personality Test for Hiring2018-04-182018-04-18 Recruiting & HR
Contemporary hiring managers often find themselves  every time they post an opening. Many candidates will have resumes touting great credentials, skills, and experience.
However, employment can often come down to more than a skill set. Candidates must fit the corporate culture, work well with their new colleagues, and demonstrate loyalty to their employer. That’s often why companies use a personality test for hiring.
## What are the Advantages of Using a Personality Test for Hiring?
Often, people ask, “why use a personality test for hiring?” A personality test helps hiring managers to take a deeper look at a candidate. Rather than simply assessing skills, a personality test will show what type of person is attached to that skill set.
It will be useful to assess, for instance, how a candidate might relate to their co-workers. If you are staffing a department full of strong, outgoing personalities, a more introverted personality might feel overwhelmed or stifled amongst so many loud and brash people.
Personality tests also tell you how a candidate processes information. They might take things at face value with little other thought. Other candidates might be prone to interpret and apply their natural intuition to a situation or problem. With this sort of knowledge, you can begin to assemble a strong team with a diversity of strengths.
### Understand unique skill set
When you use a personality test for hiring, you can discover unique skills or attributes in a candidate. Your candidate might be a whiz at bringing people together and discovering commonalities. This sort of skill might not directly apply to the nuts and bolts of a project, but if they can bring extra cohesion to a team, that is the sort of asset you can’t teach or buy.
On the other hand, you might need a stronger leader on the team. If you are managing a team of introverted programmers, a stronger leader might be useful when it comes time to make a presentation to the Board or to motivate teammates on a daily basis.
### Match for culture
Hiring is a delicate art of creating a working culture based on individual skills and personality traits. You need an instrument that will give you the insights you need to determine where a new candidate will fit within your culture.
Do you need another strong salesman type or does the culture need a big-picture philosopher-type? With personality testing, you can find the best players for your team.
### Match for position
While you might have a candidate who has held similar positions in other companies, you need to know whether they will fit the specific position you have available. You might be hiring for a receptionist or a file clerk, for instance. In that situation, a personality that craves entrepreneurism and creativity might not be a great match.
On the other hand, a personality that craves routine and predictability might not work best in a sales or other position that requires outside-of-the-box thinking.
### Avoid biases
One thing personality tests do is help you avoid biases. When you have a set of objective test results, you can take a look at who the candidate is apart from any bias you may have about them. We all have biases, so these tests are a great way to look past our emotional responses.
## What are the Disadvantages of Using a Personality Test for Hiring?
It’s true, personality tests are great tools for hiring. However, they are only one of many tools you can use in your hiring process. If you rely too much on them, you will eliminate many of your own intuitions. Hiring is an art and it would be disadvantageous to rely too heavily on scientific measures to create a human result.
Another reason to not use a personality test for hiring is that it might not be the right test, or that it might contain certain biases. Evaluate the tests carefully before applying them to your hiring process. If you want a culturally diverse employee base, it will be important to screen out tests known to have cultural biases.
### Accuracy
Personality tests of various sort have been in use for well over a century. Contemporary tests are the most accurate we have, and they are highly effective tools for you to use in hiring. As long as they have been vetted for cultural bias, you can use a personality testing protocol to establish certain baselines for your employees.
Remember, however, that you should not rely on them 100%. No personality test can yet assure us perfect accuracy, so continue to use your time-tested intuitions. When you use a personality test for hiring, no matter how accurate, never forget that it is just one of many tools at your disposal.
### Reliability
In the contemporary world, our personality tests are far more reliable than those in the past. When you choose a test for your hiring process, research which ones are considered the most reliable.
Read testimonials and read any related scientific studies to verify their efficacy. Most are quite reliable and will help you arrive at a more objective perspective on your hiring, as well as your existing team. However, if you choose a test without research behind it, you could be getting incorrect results.
### It’s not the end all
Using a personality test for hiring is not the ultimate method for staffing the best team. However, they are strong and reliable tools that are at your disposal when you need them.
You should spend quality time in interviewing candidates, getting feedback from their potential teammates, and examining their resumes. Personality metrics can’t yet give us a full experience of who a person is, much less how they will perform in a new situation with all-new people.
Also, it’s important to note that employers should check the laws in their state about personality tests and tests used for hiring to ensure you are following applicable employment laws.
## Rush Recruiting is Here to Assist
Rush Recruiting has a  that will help you implement personality tests or other methods for hiring the best staff. Give us a call at or . We are here to help!
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