Inside Self-Storage: Booming industry can manage growth with HR outsourcing
Rapid growth, raising prices, inflation, and labor challenges are a few factors weighing on self-storage facility owners as the industry experiences a boom in business.
Though growth is exciting, managing these changes is challenging for independent facility owners, who make up the majority of the industry. In the Inside Self-Storage article “Outsourcing Human Resources for Your Self-Storage Operation: Benefits, Options, Costs and More,” G&A Partners’ Chief Revenue Officer John G. Allen explores how outsourcing can lessen the burden on business owners.
Self-storage facility owners “often lack the resources to handle large-scale growth and change, particularly on the staffing side of the business,” Allen says in the September article. “It may not be feasible for them to hire human resources (HR) manager and payroll administrator—two roles that can have a significant impact on bottom-line value. Outsourcing may be the answer.”
Allen says the benefits for business owners include the ability to manage their workforce more efficiently, access to experts who can help navigate complex and ever-evolving regulations, and costs that are significantly lower than hiring human resources or payroll staff.
Self-storage owners can choose from four outsourcing options, each tailored to a business’ unique needs. For a full-service option, Allen says businesses often “choose to partner with a PEO, which performs all the core functions of an HR department and provides strategic guidance on related matters. It also allows you to access to less expensive health and financial benefits for employees.”
“To put things into perspective, the average mid-sized business that handles HR in-house spends $4,500 per employee, per year on related functions,” Allen says. “Depending on the level of service and number of employees, the price range for outsourcing typically ranges from 3% to 8% of a company’s total payroll. The cost for PEO services, specifically, is usually anywhere between $100 and $150 per employee, per month. The savings are significant.”