Introduction

A Human Resources (HR) department is a critical component of employee well-being in any business, no matter how small. Human Resources responsibilities include payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws.

Any mix-up concerning these issues can cause major legal problems for your business, as well as major employee dissatisfaction. But small businesses often don't have the staff or the budget to properly handle the nitty-gritty details of Human Resources. Because of this, more and more small businesses are beginning to outsource their HR needs. In fact, the HR outsourcing industry is expected to grow from $13.9 billion in 1999 to $37.7 billion in 2003, according to the market research firm Dataquest.

Today, HR outsourcing goes beyond just handling payroll and benefits. Deciding which HR functions to offload and which firm to outsource to can be quite a challenge. This buyer's guide will help you to easily navigate through the process.