by Ann Donnelly
For small business owners, the “to-do” list is often a mountain that never levels off. Between managing growth and daily operations, the complex world of human resources—compliance, payroll, and employee relations—can quickly become a liability rather than an asset.
Jennifer Barry, J.D., HR Consultant Practice Leader at GTM Payroll & HR, says businesses don’t have to choose between a hefty salary and a “recipe for disaster”.
“Asking non-HR staff to take on these duties is risky,” Barry said. “You may alienate the employee, you may lose them, and frankly, they may just get it wrong. Many HR areas require strict compliance, and there is no room for error”.
Fractional HR is emerging as a major tool for smaller businesses or startups operating on a lean staffing budget. The concept is simple: instead of hiring a full-time mid-level HR professional at an average salary of $80,000 per year, a company can hire a highly experienced consultant for 10 to 12 hours per week, only when needed.
“Consultants can often do in 10 hours per week what a full-time employee can do,” Barry noted. “Because they aren’t ingrained in the organization or distracted by day-to-day office operations, they work with a level of efficiency that is hard to match internally”.
At GTM, the consulting team functions like a “Halls of Justice,” providing clients with access to a “superhero” on call. These generalists bring up to 30 years of experience to the table, supported by a network of specialists in areas like employment law, training, handbook development, and benefits.
For many owners, the sign that it is time to look outward is a simple lack of “peace of mind”. Barry suggests owners ask themselves: What am I doing that I don’t like? What is taking too much time? Where do I lack the knowledge to proceed?
“When a business grows beyond the abilities of the owner, or hits that 20-employee mark, it’s time to seek professional help,” Barry said.
Even organizations with dedicated HR staff may need outside counsel. External consultants provide a neutral, objective view that is critical during sensitive investigations, such as harassment complaints, where in-house staff may lack specific experience.
The HR landscape is shifting rapidly. Today, HR is finally gaining a “seat at the strategic table” as C-suite executives begin to prioritize work-life balance. However, this new seat comes with new challenges, particularly in managing a multi-generational workforce spanning five to six generations.
“Because of generational diversity, it is impossible to have a single strategy for recruiting and retaining talent,” says Barry. “We are seeing young people managing older employees and a workforce that speaks different ‘languages’.”
Flexibility remains the top demand, with employees seeking remote work options and non-traditional hours. Meanwhile, technology—specifically AI—is transforming recruitment. While AI is a powerful tool, Barry cautions that widespread distrust remains.
“AI must be used as a tool, not as the sole source of information or a replacement for a full role,” she said.
A significant current trend is the dramatic increase in benefits costs, which have soared by about 40% recently. This substantial jump necessitates a change in how the traditional employer-employee relationship operates.
“Employers simply cannot absorb that much additional cost,” Barry explained. “As a result, employees are having to contribute more toward premiums or take on higher deductibles. We are all hoping these costs will eventually come down”.
When hiring an agency, Barry advises businesses to vet their flexibility and industry-specific knowledge. While an outside consultant may not initially be as “engaged” with a company’s culture as a full-time hire, a quality consultant will have a clear plan to learn that culture.
“You want to know how they will learn about your culture and what their availability looks like,” Barry said. “The goal is to find an objective partner who provides the expertise you need, exactly when you need it”.
For more information on GTM Payroll & HR, visit gtm.com.