Top HR Consulting & PEO Firms in Chattanooga

Are you a business owner or HR leader in the Chattanooga area looking for various types of HR support? HR support and consulting can range from a few hundred dollars all the way up to tens of thousands of dollars per month. Here is a fast breakdown of the types of services HR consulting companies provide and a quick definition of each.

We’ve also reviewed local and regional Chattanooga-based providers below so depending on what you’re looking for, we can point you to the right provider.

Need HR Infrastructure

For small companies, you sometimes need the basics to get started. You need an employee handbook, pick payroll provider, onboarding forms, and basic compliance in different states.

Need Monthly Ongoing HR Advice

For small companies, you can’t hire a full-time person for HR but you still have HR needs. Every month certain things have to happen such as payroll getting run, reports being submitted to each state, HR compliance questions, and someone to help onboard and offboard employees. There are HR consulting companies to help you with this.

You Want to Outsource HR Projects

You may have one-off projects like a strategic hire you want to outsource, or you want someone to build a training program for your company. There are hundreds of types of one-off projects that may need to be accomplished where you need a training consultant.

You Want to Outsource All or Portions of HR

Some companies decide not to hire HR people as they grow. Instead they outsource all or certain functions of their HR. This can happen in a lot of different ways but thinks like payroll processing, benefits administration, recruiting, and the HR hotline can all be full outsourced or certain functions can be outsourced. Everyone is still hired as an employee of your organization, you just don’t need actual W-2 HR employees or you may only have one or two HR people vs building out an entire team.

You Want to Outsource to a PEO (Professional Employer Organization)

Many people are confused about a PEO and exactly what it is. At it’s most basic level, a PEO takes on employing all your employees. Your organization has little to no employees and everyone works for the PEO (but they still do tasks for your company). This usually has a per employee cost but the benefits are mostly reduced risk and better benefits than a small business can get on their own.

In this article, we aim to simplify this process by highlighting the top five HR outsourcing service providers and PEOs in Chattanooga and providing you with important tips to help you choose the best fit for your business.

Why Should a Business in Chattanooga Consider HR Outsourcing?

By outsourcing HR tasks to specialized firms, Chattanooga businesses can tap into a reservoir of expertise and innovative solutions, allowing them to focus on growth and competitiveness in this vibrant market. To give you more reason to consider HR outsourcing, here are some of the key benefits:

  • Many small businesses hire an HR person once they get to a certain size (50+) employees. When you’re a small business you have a decision of having someone internally handle HR that also has other responsibilities, hiring part-time HR employees or looking for an third party service to help 
  • Understanding HR can be very difficult, there are a lot of unique situations that come up where having professional support would help
  • Not having appropriate HR representation can be very risky and potentially expensive. Ensuring you have the right setup, processes, and ongoing support is critical
  • For most businesses your people are your business. Ensuring you’re hiring the right people and making sure they’re engaged is critical – not all business owners know how to do that.  

5 Best HR Consulting & PEO Firms in Chattanooga

1. Management Recruiters 

Management Recruiters stands out for its specialized approach in connecting organizations with top-tier executive and leadership talent. With a focus on understanding the unique needs of each industry, they leverage a deep network of professionals to find candidates who not only meet the technical requirements but also align with the company’s culture and values. Their expertise in executive search ensures that clients receive personalized and strategic recruitment solutions.

Address:
6005 Century Oaks Dr. Suite 400, T.N. 37416, United States

Phone Number:
+1 (423) 894-5500

City:
Chattanooga

Key Features:

  1. Specialized in executive and leadership talent acquisition.
  2. Part of the globally franchised MRI Network, with over 325 affiliate offices.
  3. Extensive experience with over 45 years in the industry.
  4. Award-winning firm, known for its high success rates in placements.

Pros:

  1. Deep industry knowledge ensures a high match quality.
  2. Global network allows access to a wide pool of candidates.
  3. Personalized and strategic recruitment solutions tailored to each client’s needs.

Cons:

  1. Specialization in executive roles may limit options for entry or mid-level positions.
  2. Services may be more suited to organizations looking for high-level positions.
  3. The extensive process might not be the fastest solution for urgent hiring needs.

2. Integrity Staffing Solutions

Integrity Staffing Solutions excels in delivering flexible staffing services tailored to meet the dynamic needs of industries like warehousing, manufacturing, and customer service. Their commitment to creating opportunities for talent to thrive is evident in their comprehensive vetting process and support services, ensuring a perfect match between the job seeker and the employer. Integrity Staffing stands out for its ability to rapidly respond to the staffing needs of businesses, emphasizing reliability and quality in every placement.

Address:
6227 Lee Highway Suite A, Chattanooga, TN 37421, USA

Phone Number:
423-414-3185

City:
Chattanooga

Key Features:

  1. Specializes in temporary, high-volume staffing, and direct hire recruitment services.
  2. Offers staffing solutions across various industries including call center, e-commerce, general staffing, light industrial, business, and professional sectors.
  3. Committed to putting associates first, ensuring their success and growth.
  4. Provides custom-built flexible staffing solutions to meet dynamic market demands and business needs.

Pros:

  1. Wide-ranging industry coverage ensures a comprehensive service offering.
  2. Focus on associate success and satisfaction promotes a positive work environment.
  3. Experience and adaptability in responding to business and market changes.

Cons:

  1. The focus on high-volume and temporary staffing might not align with all business’s permanent staffing needs.
  2. The breadth of industries covered may lead to variations in service quality across sectors.
  3. Potential delays in communication or process as noted in online feedback.

3. Express Employment Professionals

Express Employment Professionals offers a comprehensive range of employment solutions that cater to both job seekers and employers across administrative, professional, and commercial sectors. Their unique value lies in their localized approach combined with a vast international network, providing personalized service while accessing a wide talent pool. Express is dedicated to helping people find meaningful employment and companies to find qualified talent quickly and efficiently, making them a pivotal partner in employment services.

Address:
5922 Shallowford Rd, Chattanooga, TN 37421

Phone Number:
(423) 893-8099

City:
Chattanooga

Key Features:

  1. Offers a wide range of employment solutions from temporary staffing to direct hire.
  2. Works with local businesses to provide skilled workers tailored to their requirements.
  3. Committed to helping individuals find good jobs and clients find good people.
  4. Part of a large network, aiming to put a million people to work annually.

Pros:

  1. Comprehensive employment solutions catering to a broad spectrum of industries.
  2. Strong local presence in Chattanooga, backed by a vast international network.
  3. Commitment to community and individual success through employment.

Cons:

  1. Services might be more aligned with temporary and high-volume staffing needs, which may not suit all job seekers or businesses.
  2. The vast range of services could potentially dilute personalized attention for specific roles or industries.
  3. As with any staffing agency, experiences may vary based on individual recruiters and the specific needs of businesses and job seekers.

4. Partners Personnel

Partners Personnel distinguishes itself by prioritizing partnerships with their clients to understand and meet their specific staffing needs. Specializing in sectors such as light industrial, finance, and administration, they offer customized staffing solutions designed to enhance productivity and operational efficiency. Their commitment to fostering strong relationships and understanding the nuances of each industry allows them to adeptly match the right talent with the right opportunities.

Address:
2275 Gunbarrel Rd, Suite 101, Chattanooga, TN 37421

Phone Number:
(423) 226-4220

City:
Chattanooga

Key Features:

  1. Specializes in light industrial, finance, and administration sectors.
  2. Customized staffing solutions for enhanced productivity.
  3. Strong commitment to building partnerships with clients.
  4. Recognized with the 2024 Best of Staffing award for exceptional service.

Pros:

  1. Industry-specific expertise ensures a precise match between talent and opportunities.
  2. A proven track record of enhancing client productivity and operational efficiency.
  3. High client satisfaction with a notable rating for service quality.

Cons:

  1. The focus on specific sectors may limit options for those in other industries.
  2. High demand for their services might impact response times.
  3. The specialized approach may not cater to all types of temporary staffing needs.

5. Aerotek

Aerotek sets itself apart with its industry-specific expertise in technical, professional, and industrial staffing. By focusing on sectors such as engineering, aerospace, and automotive, Aerotek is able to provide clients with candidates who not only have the required skills but also a deep understanding of the industry’s unique challenges and opportunities. Their dedication to building strong, lasting relationships with both clients and candidates ensures a high level of service and successful placements.

Address:
1206 Pointe Center Drive, Suite 100, Chattanooga, Tennessee 37421, United States

Phone Number:
(423) 242-2620

City:
Chattanooga

Key Features:

  1. Specializes in engineering, aerospace, and automotive staffing.
  2. Industry-specific expertise for a deep understanding of challenges and opportunities.
  3. Strong commitment to building lasting relationships with clients and candidates.
  4. Offers a comprehensive range of staffing solutions, including temporary, temp-to-perm, and direct hire placements.

Pros:

  1. Deep industry knowledge ensures precise matching of candidates to job roles.
  2. Long-term relationships with clients and candidates enhance service quality.
  3. Wide network across technical, professional, and industrial sectors.

Cons:

  1. Focus on specific sectors may limit options for those in non-targeted industries.
  2. High specialization might result in longer wait times for niche placements.
  3. Services highly dependent on the current demand within specialized industries.

How to Choose the Right HR Outsourcing Service

Choosing the right HR outsourcing service in Chattanooga requires a thoughtful approach, considering various aspects that align with your business needs.
Here’s a step-by-step guide to help you navigate this decision-making process:

1. Packaging Options:

Start by reviewing the different packages offered by HR outsourcing providers. These packages can range from basic HR support to comprehensive solutions that include payroll, compliance and employee training. It’s important that you choose a service that not only meets your current needs, but also has the flexibility to adapt as your business evolves. Consider the scalability of the packages and whether they can keep pace with the growth of your business.

2. Range of Services:

Evaluate the range of services offered by each firm. Not every HR outsourcing company offers the same services. For example, if you are primarily looking for staff, you should make sure that the provider specializes in talent acquisition and recruitment. If your primary focus is employee training and development, look for companies that have a strong track record in these areas. Your goal should be to match your immediate and future staffing needs with the services they offer.

3. Support and Account Management:

The amount and type of support offered is crucial. Some companies offer local support, while others operate regionally or internationally. Check whether you have a dedicated account manager who can attend to your needs immediately. You should also ask about the availability of specialized support, such as access to employment lawyers or HR consultants to deal with complex situations or legal matters. The quality of support can have a significant impact on the effectiveness of your HR functions.

4. Location and Accessibility:

The location of the HR outsourcing firm can affect your working relationship. Local firms may offer a more personalized service and be more familiar with the local business environment and regulations. On the other hand, national or regional providers may bring broader expertise and more resources to the table. Consider how important a local presence is to your business and whether you prefer face-to-face contact or remote collaboration.

5. Pricing Structure:

Finally, consider the pricing structure of the HR outsourcing services. Costs can vary widely, ranging from affordable monthly fees for basic support to larger investments for comprehensive HR management. Check your budget requirements and compare them with the offers of the individual packages. It’s important to find a balance between the cost and the value of the services provided to ensure that the investment contributes positively to the efficiency and growth of your business.

Conclusion

In summary, HR outsourcing is an increasingly strategic choice for Chattanooga businesses because it offers a blend of expertise, efficiency and cost-effectiveness. By choosing the right outsourcing partner, companies can navigate complex HR landscapes, ensure compliance and drive growth. This article outlines the top 5 HR outsourcing services in Chattanooga and gives you key tips for choosing a suitable provider. Whether it’s cost management, access to specialized services or scaling operations, HR outsourcing is a flexible solution tailored to the diverse needs of Chattanooga’s dynamic business environment.

FAQs

Can small businesses in Chattanooga benefit from HR outsourcing?
Absolutely, small businesses in Chattanooga can significantly benefit from HR outsourcing by gaining access to specialized expertise and reducing the burden of HR tasks, allowing them to focus on core business growth.

Does HR outsourcing improve efficiency for companies in Chattanooga?
Yes, HR outsourcing can greatly improve efficiency by streamlining HR processes, ensuring compliance, and providing expert support, thus allowing Chattanooga companies to operate more effectively.

Why is HR outsourcing a strategic choice for businesses in Chattanooga?
HR outsourcing is a strategic choice for Chattanooga businesses as it offers access to a broad range of HR expertise, helps manage costs effectively, and supports scalability as the business grows.

Is HR outsourcing cost-effective for Chattanooga-based companies?
HR outsourcing can be a cost-effective solution for Chattanooga-based companies, as it eliminates the need for a full-time, in-house HR staff and offers scalable solutions tailored to business size and needs.

How much does HR outsourcing cost?
The cost of HR outsourcing varies widely, with packages ranging from a few hundred dollars per month to several thousand dollars, depending on the scope of services and the specific needs of the business.

What are the main types of HR services that are outsourced?

See the full list below, but major HR functions include recruiting, payroll administration, benefits administration, HR admin work, HR compliance, talent management, and training.

What size companies usually outsource HR

It really depends but here is the most common use cases

  • Under 20 employees: Can’t afford a full-time HR person and don’t have someone internally to handle HR. It’s also easy to outsource small projects like “build our employee handbook” or help with a one-off strategic hire.
  • 20-75: Might have a part-time HR person but they need more strategic help with areas such as recruiting, onboarding, talent management, payroll, and benefits
  • 75+ Employees – These companies are good candidates to outsource their entire HR department. That usually means they have one strategic HR person, potentially a recruiting department, and they outsource everything else instead of hiring more HR people internally.

What’s the difference between a PEO and HR outsourcing

  • In a PEO, the employees actually work for the PEO company not the small business. PEOs usually have a cost per employee per month but structurally the company doesn’t actually have W2 employees usually, they work for the PEO
  • With HR outsourcing the employees still work for the company but the HR outsourcing firm is helping them execute what’s needed for HR.

HR Services Regularly Outsourced:

HR Management and Admin Services

  • Termination processing
  • Promotion and transfer processing
  • New employee onboarding
  • New hire/rehire processing

Compliance:

  • Establishing corporate policy manuals and employee handbooks
  • Printing and distribution of compliance documentation
  • HR audits and full summary reports
  • EEO-1/VETS-100 reporting
  • Compliance assistance and response to formal HR complaints
  • Electronic I-9 file compliance audit
  • E-Verify services
  • Employment posters distribution

Strategic HR Services:

  • Performance management, succession planning, employee engagement consulting
  • Creating job descriptions on behalf of the company
  • State unemployment guidance (key strategy depending on the type of business)
  • Custom exit interviews for employees leaving the organization
  • Any type of project based consulting
  • General legal advice from an employment perspective (most have employment lawyers on retainer or staff)
  • Custom training projects
      • Compliance

      • Leadership development

      • Coaching

      • Harassment

      • Safety, etc.

  • Online employee training (compliance or otherwise)
  • Drug and background check process
  • Salary survey work to determine correct pay ranges by location

Payroll Services:

Payroll Processing:

  • Providing weekly summary for management to approve
  • Setup of payroll in HRIS/HRMS
  • Initiating payroll cycles
  • Calculating pay
  • Investigating and resolving calculation errors
  • Handling payroll audit issues
  • Schedule annual payroll calendars
  • Retroactive payment calculations
  • Special payment type processing

Deductions:

  • Submitting and approving deduction data
  • Inputting deductions 
  • Reviewing and resolving process errors
  • Providing remittance payment instructions
  • Arrears deduction processing

Payroll Files:

  • Monthly/quarterly/yearly commission 
  • Bonuses
  • Annual flex perk
  • Annual sick time 
  • Annual merit

Payroll Taxes:

  • Calculating and deducting federal, state, and local taxes
  • Preparing and filing payroll tax returns
  • Completing payroll regulatory reporting
  • Handling W-2 preparation and distribution
  • Processing tax adjustments/corrections
  • Handling tax withholdings on non-wage earnings
  • Handling unemployment insurance provider data files

Payroll Reporting:

  • Providing payroll operating reports
  • Offering ad hoc payroll reports
  • Providing employment and wage verifications
  • Handling new hire reporting
  • Multisite reporting

Distribution:

  • Preparing payment distribution
  • Processing direct deposits and print/distributing checks if necessary

Data Maintenance:

  • Submitting and approving employee record changes.

Benefits Administration Services:

Guest Services:

  • Handling employee and customer inquiries
  • First-line support for questions
  • Interpretation of plan designs and policies
  • Incoming inquiries management

Enrollment:

  • Ongoing benefit enrollment and general assistance.
  • Annual enrollment

Event Change Processing:

  • Processing change-in-status events
  • ACA compliance reporting

Premium Administration:

  • Calculating monthly premiums
  • Reconciliation with carrier invoices
  • Benefits billing
  • Benefits billing for participants requiring direct payments

 

Ongoing Services HR Outsourcing Companies Can Provide

 Ongoing Service Delivery:

  • Any calls/questions made to HR

  • Managing and maintaining employee online records

  • Single point of contact for routine service requests

  • Corporate communications assistance

  • Setting up global notifications and HR process escalations

  • Ad-hoc HR reports

  • Maintain security access for system users

  • Updating job descriptions

  • HR action form assistance

  • Communication assistance with vendors

  • Tools and tracking for industry-specific reports

  • System training and tools for clients

  • Recruiting support (excluding sourcing and screening)

  • Rejection letters, disciplinary letters, and offer letters

  • FMLA/LOA administration

  • State unemployment compensation processing

This summary includes a wide range of HR and payroll services that HR outsourcing companies can provide to small businesses. The specific services you choose should be based on your business’s needs and priorities

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