This small business HR guide outlines the four common types of HR solutions you can choose from: an HR manager, an HR department, a PEO agency, and an HRO agency. In this video, business.com editor Skye Schooley explains the pros and cons of each option, as well as the types of businesses that benefit most from them.

Timestamps
00:00 Business.com staff writer Skye Schooley breaks down the four main types of HR solutions in this HR guide for small businesses
00:40 You can keep your human resources in-house by hiring an HR manager. Benefits include employee satisfaction, company culture, and control. Limitations may include finding the right person and limited time or knowledge.
01:22 This HR guide for small businesses explains which types of businesses benefit most from hiring HR managers.
01:29 If you want to expand your business into an HR department, the benefits include employee satisfaction, company culture, and control. Limitations may include cost and internal bias.
01:54 Schooley explains what type of businesses benefit most from hiring human resources departments.
02:03 If you choose to outsource your human resources to a professional employer organization (PEO), you will enjoy benefits such as time and cost savings, benefits, legal compliance, and recruiting. Limitations may include limited control, potential privacy issues, and delayed dispute resolution.
02:52 Schooley explains what types of businesses benefit most from partnering with a PEO.
02:59 If you’re looking to partner with a human resources outsourcing (HRO) service, benefits include time and cost savings, legal compliance, customizable HR options, and hybrid HR capabilities. Limitations may include limited control, potential privacy issues, and delayed dispute resolution.
03:54 Schooley explains what types of businesses benefit most from partnering with an HRO.
04:09 The best HR solution for your business will depend on your specific needs, and these may change over time.

Human resources handles a variety of business functions, such as payroll, benefits administration, risk and compliance management, training and development, and company culture. That’s why it’s critical to choose the right HR solution for your business. This guide to human resources for small businesses explains the four common types of HR solutions. For example, you can keep your human resources in-house by hiring an HR manager or HR department, or you can outsource them to a PEO or HRO. Learn the benefits and limitations of each option to determine which one is best for your business.

Skye Schooley is a writer for business.com.

For more information on when to hire an HR manager, visit https://www.business.com/articles/when-to-hire-an-hr-manager/

To learn more about the pros and cons of an HR department, visit https://www.business.com/articles/hr-department-pros-and-cons/

For more information on SMB considerations when outsourcing work, watch https://www.youtube.com/watch?v=h255YbJ2h4k&t=56s

To find the best PEO for your business, visit https://www.business.com/categories/best-peo-services/

To find the best HR outsourcing service for your business, visit https://www.business.com/categories/best-hr-outsourcing-services/

For more tips on starting and running a business, visit https://www.business.com/

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