small business owner team

As a small business owner, you often face tough decisions that impact your team, your time, and your bottom line. One of the most important decisions you’ll make as your company grows is how to handle human resources. Should you invest in HR software to automate your processes or hire an in-house HR manager to handle everything personally?

What’s Best For You?

At TANDIUM, we’ve guided many businesses through this exact decision. There is no one-size-fits-all answer, but with the proper perspective and support, you can find a solution that fits your company’s size, culture, and goals. Let’s break down the pros and cons of each path to help you make the best decision for your business.

The Case for Small Business HR Software

HR software has become increasingly popular among small businesses seeking to automate and streamline their human resources operations. These platforms can handle payroll, onboarding, time tracking, benefits enrollment, performance reviews, and other HR-related tasks.

Advantages of HR Software:

  • Efficiency: Software can automate repetitive tasks and organize employee data in one place, saving you hours each week.
  • Cost-Effective: Subscription-based HR software is often more affordable than hiring a full-time employee, especially for businesses with fewer than 50 employees.
  • Scalable: Many systems grow with your business, offering add-ons or integrations as your needs evolve.
  • Compliance Tools: Some platforms offer reminders, reporting tools, and legal updates to help you stay compliant.

Limitations of HR Software:

  • Limited Human Insight: Software lacks strategic thinking and emotional intelligence, both of which are crucial for resolving employee issues and shaping company culture.
  • Overwhelming for Beginners: Business owners without HR experience may find themselves unsure how to set up or use the tools properly.
  • Support Can Be Inconsistent: Many platforms offer chat or ticket-based support, which may not be timely or personal enough for pressing HR needs.

The Case for Hiring an HR Manager

Hiring an experienced HR manager brings a human element to your organization. This person can work closely with your leadership, your team, and your business goals to build a people-first culture.

Advantages of an HR Manager:

  • Personalized Strategy: An HR manager offers tailored support for your company’s structure, industry, and team dynamics.
  • Culture Building: They help shape and reinforce company values, foster employee engagement, and improve retention.
  • In-Depth Compliance Oversight: HR professionals know the regulations and how to apply them to real-life situations, reducing your legal risks.
  • Real-Time Problem Solving: Whether it’s a conflict between employees or a tricky benefits question, your HR manager is there to handle it personally.

Limitations of Hiring an HR Manager:

  • Higher Cost: Full-time salaries, benefits, and training add up. For small businesses, this can be a significant expense.
  • Dependency on One Person: If that person leaves or takes time off, your HR operations could stall without a backup plan.
  • Hiring the Right Fit Takes Time: Finding someone who aligns with your company culture and has a deep understanding of your industry can be challenging.

So, What’s Right for Your Business?

Here are a few questions to help you decide:

  • Do you need day-to-day administrative help or high-level HR strategy?
  • Is your business growing quickly or relatively stable?
  • How much time are you spending on HR tasks now?
  • Are you confident in managing legal compliance and people issues, or do you need more hands-on support?
  • Do you have a budget for a full-time hire, or are you looking for a flexible and cost-efficient solution?

Where TANDIUM Fits In

The good news is that you don’t have to choose between software and a full-time HR hire. At TANDIUM, we offer a third path: HR consulting and support services tailored to your specific business needs. We combine the ease of software with the strategic guidance of an experienced team, all without the cost or commitment of a full-time employee.

Whether you’re just starting to set up your HR processes or you’re outgrowing your current system, we’re here to help you build a solution that suits your needs. You can lean on our experts for everything from onboarding and policy creation to compliance audits and benefits administration. And because our services are flexible, you only pay for what you need.

Helping You Make the Right Move

Choosing how to manage HR is a big decision, but you don’t have to make it alone. At TANDIUM, we care deeply about the success of our clients and their teams. We take the time to understand your business, your people, and your goals so we can recommend the solution that makes the most sense for you.

If you’re weighing your options and want to discuss them with someone who truly understands both sides, we’re here to help. Let’s find the path that supports your business today and grows with you tomorrow.