Jessica Yuen is the head of people at Gusto, a human resources, benefit and payroll processing company. She offers sound advice for small businesses looking to hire, pay and offer benefits for employees.
(Photo courtesy of Jessica Yuen)
Why should someone hire a human resources company?
There are two main reasons to consider hiring an HR company as a small business. First, taking care of your employees is important in any business. Many small business owners want to be thoughtful about that, but just don’t have the time or resources to do it well amidst taking care of customers, operations and sustaining their business over the longer term. Second, there’s the practical reason that things like payroll or insurance can be complex. Folks who start a small business want to pursue a passion, which usually doesn’t include learning about topics like payroll taxes or compliance. Learning is great, but the language of these topics is not always straightforward. In fact, it is complex enough that 40 percent of small businesses are fined every year for filing their payroll taxes incorrectly, which is about $850 per business.
Any great HR company wants to put people first and take care of a business owner’s needs. That is why at Gusto we invest in simple and intuitive design that’s easy to understand, features to alleviate a business owner’s headaches like AutoPilot, automatic payroll, as well as a delightful customer experience.
What should small business owners consider when starting the hiring process?
Before growing your team, first plan out what you’d do with the additional help. List out tasks they’d help with such as hours they might work, skill sets you would want them to have and any training needs. Will you need to create guidelines or rules for them? Then consider if finding and training this person will be worthwhile. To determine the answer, consider the practical implications of hiring an employee, as it’ll trigger a few regulatory and tax implications, and whether a contractor or employee makes more sense. Then, last but not in any way least, it is extremely important to understand how each hire influences a team. For small business owners, it is even more important to find someone who is a strong match since each person will greatly influence the company. At Gusto, we focus on finding alignment along three dimensions.
- Values. Are they passionate about our mission and how we approach our business?
- Motivations. Is what they want in the next stretch of their career aligned with opportunities we can offer?
- Skill-sets. Do they know how to do the job, or have they shown that they can learn to do the job quickly? Will they represent our business well?
This alignment ensures a successful jumpstart to finding the right folks for a company.
This article was written by Robin D. Everson for Small Business Pulse