Ep. 8 - In-house vs Outsourced HR for Startups

In this episode, I delve into the intricacies of HR outsourcing, particularly for startups navigating growth phases. Below are the main topics discussed:

Understanding PEOs (Professional Employer Organizations): Insights into how PEOs help small businesses, especially those with fewer than 50 employees, manage compliance, payroll, and benefits efficiently. I explore the cost advantages and challenges, particularly when a company nears 100 employees.

Talent Acquisition Strategies: The importance of in-house candidate evaluation and the potential role of third-party recruiters. I discuss when and how to utilize external recruiters, especially for niche roles, while maintaining control over the assessment and hiring process.

Building a Scalable HR Infrastructure: Essential elements of HR infrastructure that support a company's growth, including the role of scalable HR processes and technology. I talk about when it might be beneficial to outsource these areas to third-party experts.

HR Strategy Alignment with Business Goals: Exploring the advantages of aligning HR strategies with broader business objectives, supported by research from the Society for Human Resource Management.

Outsourcing Strategic HR Work: Evaluating the options between hiring a fractional HR leader versus project-based consulting for developing HR strategy, including the financial and operational implications for rapidly growing companies.

Navigating Vendor Relationships: The importance of partnering with tech-agnostic HR consultants and being wary of those with vendor biases due to referral arrangements.

Conclusion and Next Steps: Reflecting on how to balance outsourcing with in-house HR responsibilities, tailored to unique company needs, and a preview of the next episode focusing on leadership in fast-growing companies.

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