Friday, June 1, 2007

Where Small Business Owners Receive Their HR Education

find it interesting when speaking with small business owners, just how limited their knowledge is when it comes to human resource matters, and interesting where they "pick-up"some of their education.

Last month I was discussing issues related to employer payroll and taxes with a group of small business owners in Phoenix. Each "entrepreneur" admitted ignorance when it came to such issues and mentioned they received much of their "education" from the sales reps that came from the service bureaus or Professional Employer Organization (PEO). While I believe that most of the leading service bureaus and PEOs train their personnel very well (and most reps have worked in at least a couple different companies in the space) their knowledge may be limited and not 100% accurate.

All the individuals in our discussions agreed that payroll and "HR stuff" is not core to their business and to outsource it makes sense (10-45 employees).

I completely agree with outsourcing as much of the HR function as possible and what is viable for your business, but before accepting the appointment with the sales rep, do your homework, educate yourself. Knowledge is power! Speak to your CPA, outside counsel (if versed on employment law) or HR consultant. A little time and money spent now may pay dividends in the future!

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