If you’re considering starting a business, you may want to avoid the hassles, headaches, and burdens of building your HR infrastructure.

The greats are doing it!

As recently as the early 1990s, HR outsourcing was a very small emerging option that was met with skepticism by large companies (over $1 billion in revenue). These early outsourcing companies didn’t have the tools, pathways, or resources to meet the demands of their early customers, but with the vast improvements of the Internet and workflow processes, in the early 2000s, human resources outsourcing had become a $165 billion industry.

Not only did it grow but it grew very well in terms of retention. An Accenture study in the mid-2000s showed that more than 80% of companies that chose to outsource HR functions were satisfied at both the management and employee levels. During this period, Shell Oil Corporation was able to reduce HR infrastructure and overall HR costs by 40% while improving benefits and employee retention.

Great, it works for the big boys, what about the startup?

With this in mind, anyone considering starting a business can stay focused on the business they are building, trying to stay compliant with policy issues and finding all the right tools to track all employee needs. This cumbersome task is time-consuming and expensive.

With a little research and due diligence, a new business can identify profitable solutions that are now plug-n-play and will develop a partnership with their vendor. Many of the options in today’s market are well suited to grow as the underlying startup grows.

Any look at the startup world today shows the dire need for HR to get it right from the start, rather than the insane struggle that seems to be in the news on a weekly basis as companies fail on this most critical problem in the management of a business.

Cash is king!

As a new business, it’s always important to hold on to cash for as long as possible. What many new businesses fail to see is that high-cost investments in HR infrastructure have no ROI, these costs can be avoided by turning to the outsourcing company. Yes, there is still a cost, but it is spread over each new hire.

Two other cost-saving benefits that many are not aware of in today’s market are pay-as-you-go, worker’s compensation, and payroll financing. Each of these silver bullets can be a cash-saving lifeline for any new business.

With the proper background screening, all of these great tools can be a part of any new company that chooses to outsource their HR infrastructure.