[matsim]

In addition to being a major lurker here, I'm also a marketing assistant at an HR consulting and employer services company. There really is a TON of stuff that these companies can offer startups.

Most interesting though, in addition to dealing with compliance, taxes, etc. a lot of HR companies are looking to offer a wide range of services. I'm thinking of things like manager leadership training, employer handbook development, onboarding, compliance assessments, job descriptions and postings, employee satisfaction surveys, etc. etc.

[PostOnce]

If you're at the stage where you need employee satisfaction surveys and an employer handbook, you're no longer a startup, you're a bona-fide company.

A lot of that stuff sounds not only unnecessary for a startup, but downright wasteful. If you have 8 guys working for you, is that really the most productive place to put money?

[rdl]

Legally you DO need crap like an employee handbook, documentation of signing off on training or compliance documents (NDA, etc.), tax and insurance compliance, etc.

It is because that stuff is such pointless crap, yet mandatory, that it is a productive place to put money vs. founder or employee time.