Human Touch

Where to find qualified HR help? Increasing numbers of experienced HR people have set up shop as consultants, with many-like Henderson and Winning-specializing in small business. Yellow Pages listings usually show several under "Management Consultants," and SBDCs can typically point you to more. But be cautious in making your decision. "Not all HR consultants understand a small business' special dynamics," warns Henderson. "Make sure your consultant has appropriate experience, and check references, too." Beyond that, a good HR consultant should be able to point you to the many specialized companies that have emerged to solve the particular HR problems faced by small businesses. In many instances, these niche companies not only perform HR chores better than an entrepreneur is likely to, but they also do it at a far lower cost. Consider payroll administration. For the entrepreneur, this can be a nightmare of federal, state and local tax forms. But outsourcing this chore for a business with 10 employees costs about $23 total per pay period, says Gene Polisseni, vice president of marketing at Rochester, New York-based Paychex Inc., a leading payroll administration company. "With tax laws constantly changing, I frankly don't think a small business can afford not to outsource payroll," says Polisseni. "Stop and think what it would cost you to do this in-house, and you'll find it's probably lots more than the fees we or our competitors charge." Still other outsourcing companies have emerged to handle background checks on job applicants, to counsel employees with personal problems (from simple discontent with their jobs to drug abuse), and to help entrepreneurs recruit quality employees. Experts expect the numbers of these businesses will multiply in the coming years because the number of small businesses that need help is growing, too. The bottom line? "It isn't hard, not today, for a small business to get the HR help it needs before it gets into trouble," says Henderson. "For almost every small business, buying needed HR assistance now is more effective and far cheaper than waiting." So what's stopping you?

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