Small Business Owners: 3 Signs That You Should Hire A Compensation Consultant

30 October 2015
 Categories: , Blog

As a small business owner, you might normally handle payroll and similar matters yourself. It might not seem necessary to develop a human resources department when your company is small. However, there is a great alternative -- hiring a consultant when needed, like a compensation consultant. These are a few signs that you should hire a compensation consultant.

1. You're Struggling with Payroll Expenses

Are you having a difficult time handling your payroll expenses? A compensation consultant may be able to talk to you about different options. For example, he or she can ensure that you are in-line with industry standards in regards to your payroll and that you aren't paying new hires in certain positions too much. A compensation consultant can also help you find ways to cut costs, such as getting a better rate on the insurance benefits that you offer your employees.

2. You're Having Trouble Recruiting the Best Talent

If you're having a hard time recruiting the best talent, you might not be paying enough or offering the right benefits packages. A compensation consultant can talk to you about how to better attract good employees. It might be time for you to offer a higher pay scale for certain positions, or you may want to explore certain benefits options, such as offering better insurance.

Along with helping you determine a better compensation package for new employees, a compensation consultant can also help talk to new hires about the pay and benefits that you are offering. For example, he or she can explain the value of the benefits that you offer and can discuss how competitive your rates are when compared with averages in your area.

3. You Need to Make Tough Decisions

Some decisions are not easy to make -- or explain. If you need to reduce salaries for some of your higher-end employees, for example, you might not want to explain this to your team. You may also need a neutral party to help you make compensation-related decisions that you might be biased on. It can be tough to make these tough decisions and announcements within the company, but an outside party can help.

As you can see, there are some situations in which even a small business can benefit from the services of a compensation consultant. Luckily, these consultants will work on a freelance basis, so they can provide you with the services that you need without incurring too many additional costs for your small company.