Solid HR Practices are Key to Achieving SMB Success

December 02, 2013

One of the most difficult jobs to undertake is operating a small business, which requires the owner to wear multiple hats and work long hours. According to a 2012 report from the U.S. Small Business Administration, when it comes to longevity, seven out of 10 new companies remain in business two years, and only about half of those survive five years.

Even as the economy improves and the marketplace screams for an owner’s undivided attention, the business of running a company has never been more complicated or demanding. One of the most critical areas is human resources (HR), and poor HR practices can have a negative impact on a company’s bottom line.

Failure to address fundamental functions such as recruiting, employee benefits management and employer-related compliance with laws and regulations, like the Affordable Care Act (ACA), can cause long-term damage to an organization. When HR is diminished, the effects can wreak havoc on employee morale and retention. As a result, productivity levels can dwindle, which may ultimately impede the company’s ability to stay competitive in the marketplace.

Many high-performing companies have gained a competitive advantage by outsourcing HR functions to a trusted advisor. Insperity, for example, provides an array of HR and business solutions designed to help improve an organization’s performance.

The advantages of outsourcing to a full-service HR and business solutions provider are numerous and may include:

Administrative relief and comprehensive HR support

It is important for a business owner to focus on the big picture, like growing the company, and enable employees to handle their designated jobs. Outsourcing important HR tasks not only allows time to focus on growing the business, but it can also improve processes and procedures by infusing order and discipline into areas that previously languished.

Envision a thriving small business where top-notch employees are recruited, retained and excel, while employer-related administrative tasks, such as payroll processing and related tax filings, employment verification and employee benefits management are handled by professionals who focus exclusively on HR matters all day, every day. This mirrors the environment at an organization that outsources HR tasks to an established, full-service provider.

Access to better benefits

Organizations that turn to full-service providers to for their HR needs often receive employee benefits they may not otherwise access. Comprehensive employee benefits packages can include medical, dental, vision and prescription drug coverage; tuition reimbursement; life and disability insurance; and even adoption assistance. Better employee benefits packages can help a business attract and retain quality employees who may otherwise choose to work for a larger company.

Assistance managing employer-related laws and regulations, including ACA compliance

Staying on top of the growing number of ever-changing government regulations has always been complicated and time consuming. And now, the complexities associated with health care reform have compounded the issue. An established, credible HR provider is equipped with the knowledge necessary to help business owners manage employer liabilities and compliance issues. They can help a company mitigate risk related to ACA compliance, unemployment claims management, wage claims and audits. No business, large or small, is immune to the costly fines and penalties that can result from not complying with employer-related laws.

With access to a variety of resources, tools and technologies, business owners are more equipped than ever to grow their organizations. A business with sound HR practices can help ease frustrations and losses, and provides a solid foundation to help build a stronger company that outperforms the competition.

Winning in business, like winning the World Series, requires laser focus, relentless drive and the ability to execute. Do not make the high-priced mistake of underestimating the important role that HR plays in a company.

This article was co-written by Eric Bonugli and Kay Oder

Eric Bonugli is a district manager and Kay Oder is a Certified Business Performance Advisor for Insperity located in the company’s Austin office. Insperity, a trusted advisor to America’s best businesses for more than 27 years, provides an array of human resources and business solutions designed to help improve business performance. For more information, call 800-465-3800 or visit

Topics: Business Operations, Featured, Content Type

Kay Oder


Kay Oder has owned six companies, has been a resource to thousands to businesses and brought solutions to help business owners minimize risk, improve business performance and navigate today’s highly regulated and complex “business of being an employer”.

Today, Kay uses the insights gained throughout her career as a speaker, business owner and business advisor. Audiences enjoy her candid, informed perspective on HR related topics as well as her razor-sharp southern wit.

Kay is also a Certified Business Performance Advisor with Insperity, the $2.6 billion business performance solutions provider she has called home since 1993. Kay has consistently been among the company’s top producers during her 20 plus years with the organization, earning Insperity’s highest honors, including the Top Volume, Circle of Excellence and the Chairman’s Club awards.

Prior to Insperity, Kay was the President and Co-founder of Texas Valve Specialists, a supplier in the oil and gas industry. She has also owned companies in the construction, demolition, machining and promotional apparel arenas. She spent four years as a client of Insperity and upon selling her last venture, joined the Insperity team.

From an early age Kay demonstrated an entrepreneurial spirit, beginning at age six when she sold cantaloupes from her parents’ front yard, which she offered three for fifty-cents, with a free puppy.

Kay and her husband, Dale, relocated to Austin from the Houston area in 1996 when a theft occurred in their family: their granddaughter was born and stole their hearts, so they had to follow.

Insperity, a trusted advisor to America’s best businesses for more than 30 years, provides an array of human resources and business solutions designed to help improve business performance. Insperity® Business Performance Advisors offer the most comprehensive suite of products and services available in the marketplace. Insperity delivers administrative relief, better benefits, reduced liabilities and a systematic way to improve productivity through its premier Workforce Optimization® solution. Additional company offerings include Human Capital Management, Payroll Services, Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Financial Services, Expense Management, Retirement Services and Insurance Services. Insperity business performance solutions support more than 100,000 businesses with over 2 million employees. With 2016 revenues of $2.9 billion, Insperity operates in 61 offices throughout the United States. For more information, call 800-465-3800 or visit

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