Most business owners would probably rather stick a knitting needle in their eye than tend to the administrative functions of running a company, but many are finding themselves increasingly distracted at a time when focusing on profit has never been more important.

 

By 2009, the number of labor laws and regulations in the previous two decades had grown by nearly 100%, leaving small and mid-sized businesses to spend up to a quarter of their time on employment-related paperwork, according to the Small Business Administration.

 

The added pressures of a harsh economic climate that has forced many businesses to lay off workers and do more with less have provided little relief. But professional employer organizations, which are essentially outsourced human resources, are flourishing in this climate by offering small businesses the chance to outsource their headaches and save money at the same time.

 

Human resources outsourcing in a down economy is something that gains a lot of attention because part of the value proposition is some reduction in costs, whether that's hard costs or soft costs. So in this economy, you have lots of companies doing everything they can to cut costs. If a company can save costs, they can then save jobs.

 

If you work for a small company, encourage them to cut costs before they do a lay off. Cutting overhead is always better than cutting employees.



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