How to structure a business without an HR depatment?

Question

Is it possible to set up a small or medium size compay without a human resources department, leaving hiring decisions to managers and outsourcing payroll/benefits? Would that likely work? This is a hypothetical situation.

Answer 1

You can do your business without having a in house HR department.

In fact, the company I work for outsourced their HR department and payroll department. The managers interview, and hire employees. It does work for a small company.

Of course as the size of the company grows, it may potentially get tougher.

Answer 2

Sure, just be sure your managers understand the local, state and federal employment laws.

Answer 3

It's possible... but I don't think it would work too well. Outsourcing payroll is risky, you'd probably be better off training administration staff to set up and use MYOB to process payroll.