Professional employer organizations can help franchises enjoy the same HR benefits as large companies without the considerable overhead.
IFA:
When starting out, many would-be entrepreneurs believe that franchises are foolproof. According to the Wall Street Journal’s StartUpJournal.com, one common mistake made by failing franchises is that too little attention is given to human resource practices. This thought is echoed by a recent BusinessWeek article, stating that poor HR practices ‘can cause entrepreneurs serious legal trouble if their operation is not set up correctly.’
In the excitement surrounding a new business, many entrepreneurs fail to give proper thought to all the responsibilities that come with being an employer. The average franchise owner isn’t equipped with either the knowledge or the time to comply with the mountain of regulations required by the government. According to Angie Masters of Fish Window Cleaning, many of the franchisees she works with have little knowledge of HR administration or of the complexities of compliance issues.
‘I am frequently amazed at what the government expects our franchisees to know concerning human resources,’ Masters said. ‘Starting a business is a stressful time. Having to fill out loads of paperwork and read up on proper HR practices are the last things on the minds of our franchisees.’
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