Katya was our HR manager. She has been with Array Digital for 5 years and 2 years from Erik’s previous company. When she left to find her passion, Erik decided to replace her with someone like her that was homegrown in HR and finance but decided to outsource our HR to the company named Insperity. In this episode, Erik shares why he decided to outsource our HR.
Erik J. Olson (00:02):
We’re doing it. We’re outsourcing our HR. What is happening? This is Erik J. Olson, your host for this episode of the Journey to $100 Million. Yeah, we did it. We are outsourcing our HR. So let me back up a little bit and tell you why this happened, why we’re doing it. So Katya was our HR manager. She’d been with us for five years at Array Digital, as long as we were a company. And two years before that with me and my previous company. So Katya and I have been together for seven years, but you know what? You can only keep good people tied up for so long. And she had to go find her passion and she left Array Digital. And that left us in a little bit of a hole. And now she, she gave us a really long heads up and,ulong transition plan.
Erik J. Olson (00:50):
And we were in good shape when she left after many, many weeks of transitioning. But at that time I took the opportunity to think about our HR and whether we wanted to replace her with someone like her, who was frankly, home grown in HR and finance, or if we wanted to do something different in both of those realms. And we, we looked at a lot of things, outsourcing our bookkeeping, outsourcing our HR outsourcing one of the other, hiring a combination of all that. And what I concluded is that when we said we were doing HR, what we were really talking about was recruiting. We do a lot of recruiting here and we do a lot of transitioning people in and sometimes out of the company, but we didn’t have a lot of things in place for like really good benefits and really good healthcare.
Erik J. Olson (01:42):
We had all those, but they weren’t really solid. They were kind of like homegrown solutions. And we also you know, when it comes to like compliance and HR compliance is a big deal. Like we’re operating in multiple states. Cause we have employees in many states at this point they’re spread out across, I don’t even know how many, six or eight states, something like that. And every state has a different rule when it comes to hiring people, things you can’t do things you can’t do things you have to do. And so I had to make sure that we were within compliance and I didn’t know, we didn’t know. So I decided to outsource, I have to stay in compliance. And as a matter of fact, if I’m out of compliance, we needed number one, find out which I didn’t even know. And number two, get into compliance. So we’ve actually outsourced our HR. We are in the process of outsourcing now to a company named Insperity. They are a $4 billion a year company. And all they do is outsource HR for companies like mine. The first step in outsourcing is to nail the first payroll. That’s what we’re working on now. And then the benefits kick in. So it’s a big step in the right direction. And so there’s a book behind me.
Erik J. Olson (03:00):
My book is Million Dollar Journey. It’s on Amazon and it’s it, it Chronicles all the things that it took to get up to a million dollars a year in revenue. And the reason I bring this up is because the salesperson over at disparity, number one, he bought the book on Amazon and Reddit. And when he, he came in for one of the final meetings and he had like dog yeared the pages. And he had sticky notes. Like he, he read it and, and he, he conveyed to me that in the book, there’s clearly like a, a progression of learning when it comes to HR and my experience in HR first I didn’t have any benefits. Then I added like paid time off. Then I added health insurance. Then I added retirement. And this is like taking it to the next step, right? So this is taking it to the next level.
Erik J. Olson (03:50):
And, and this is, you know, this phrase I’m about to say has a, has a negative connotation in, in around world war II and history, a final solution. But I, I refer to this as the final solution when it comes to our HR. Like, I don’t need to worry about this probably ever again, or maybe I don’t have to worry about HR until we’re like massive, right? But this is gonna take us. What, what we’re doing now is gonna put us in a position to not have to deal with this problem. Again, for many, many, many years, 6, 7, 8, 10 years. I won’t have to worry about HR again. I won’t have to worry about like my HR manager leaving. I won’t have to worry about compliance. I want anything to do with payroll and HR and benefits taken care of for the next 10 years. And that is a huge relief to me to finally have that final solution in place for at least one piece of the company.
Erik J. Olson (04:46):
Now there’s other pieces of the company where we either have the final solution or we’re working towards that, or, or not even close, but it’s such a relief as a CEO to know that this is the final solution when it comes to HR, again, at least until, you know, 10 years from now, when we’re massive over a hundred million dollars of revenue, but for now we’re good. So if you’re interested in finding out more, hit me up on social media, I hang out on Instagram @erik.j.olson, E R I K dot J dot O L S O N.