At cavnessHR we can also create how HR is delivered to companies with less than 50 employees.
cavnessHR will deliver great HR to small companies after they have obtained a good market fit with a product that can satisfy that market, and up to the time they reach the 50-employee mark. cavnessHR will deliver great HR to small companies at a cost that is not averse to them. cavnessHR will be the company every business with less than 50 employees in the U.S. uses for their HR.
Around 543,000 new businesses start in the U.S. each month. According to the Small Business Administration there are over 5 million small businesses in the U.S. These businesses account for the employment of over 31 million people and over $1.15T in annual payroll. To break this down further, businesses with less than 20 workers make up 89.6 percent of small businesses.
There is a misconception that most companies have HR resources, either through a dedicated HR person or by using a HR Consultant. However, most small companies do not have anyone dedicated to conduct the HR Business function for them.
One reason for most small companies not having dedicated HR is the cost associated. The cost for an internal HR person can be from $50,000 to $100,000 or more per year. You then have HR Consultants who charge from $150 to $400 or more per hour. Both current options are cost prohibitive to small businesses. Which is one of the reasons why small business owners make the decision not to bring on HR. New businesses cannot afford the high cost of HR as it is currently delivered.
This places them at risk for various compliance challenges and places them at risk for not being able to scale when performance levels and efficiency are required by larger operational demands. This also places them at risk for not paying their employees correctly (either too high or too low). These are just some of the risks small companies take by not having HR.
Currently HR is now delivered to small businesses by high interaction and high touch points. We believe that great HR can be delivered to small businesses without a high interaction between the small business and cavnessHR while still providing great customer service. cavnessHR will deliver great HR through a cloud based system that will allow for the minimal amount of interaction possible.