How Outsourcing HR Can Help Small Businesses Outsourcing HR: How It Can Benefit Small Businesses
More and more small businesses are looking to
outsource their HR requirements. This isn’t something that shows any signs of slowing down. In fact, we can only see this becoming more attractive for small businesses throughout the UK. By outsourcing your HR, you’re business is able to keep business costs to a minimum, whilst receiving a professional HR support service. In fact, it’s probably beneficial for smaller businesses to outsource their HR because it gives them access to experienced HR professionals that may be out of their salary reach. So, with so many HR consultants and services available, what should you be looking for when choosing your perfect HR service? What To Expect From A HR Consultant
What you can expect from a HR consultant is entirely dependant on the services they offer. Some consultants may offer or include services that others don’t. It’s vital that you take the time to choose a package that includes everything that your business requires. Whether that’s
employment law advice and support, tribunal representation, payroll processing, absence management, staff training or whatever else your business needs. Remember, with so many choices available to you, you can take your time to ensure that you get the services that are most important for your business. There is no reason to settle for anything other than what you need. Our HR consultants are happy to speak to you about your requirements and our HR team could help your business. Internal Vs Outsourcing
Before you decide to outsource your HR requirements, you should consider the benefits of outsourcing vs hiring internally. Both of these options bring different things to the table. It’s important that you have fully considered all options before you make a decision as the wrong choice could prove costly for your business.
What are the main benefits of working with a HR service?
There are many advantages to working with a HR consultant or service. However, we feel that the main benefits are:
Everything in one place – when you outsource you HR, it means that all of your HR requirements are being managed by a single source for you. There’s no need to speak to multiple companies or members of staff for updates. Cheaper than hiring a full HR team – by working with a HR service or consultant, you’re gaining a full servive HR team at a fraction of the staff costs. The minimum expected cost of a single HR employee is around £25,000 per year, however when you outsource your HR you’re able to save potentially £10,000’s per year on your costs. More experienced – by outsourcing your HR, you get access highly experienced HR professionals that may not have been financially available to a small business. Scales up with your business – by outsourcing your HR, you’ll find it easier to increase the level of support your business gets as you need it. You’ll be able to add additional services to your ‘package’ as you need them to get the exact support you need! Everything handled by service level experts – your payroll requirements are handled by a payroll specialist, employment law advice by a legal expert etc. To get the same support internally, you’d be looking at a high cost! What are the main benefits of hiring an internal HR expert?
Hiring an internal HR expert also brings it’s own benefits. These include:
Always available when you need them – because they’re based in your offices, rather than being external, your internal HR expert will always be available whenever you need them. Get to know your staff and your culture – by having an internal HR expert, they become a part of your office culture and know your staff. This makes them more approachable and may make it easier to resolve inter-personal issues before they become an issue. Staff recruitment – even if your outsource your HR, you’ll still need to handle your recruitment internally. By having an internal HR team, this is easily managed. Reduced risk of information leaks – by outsourcing, you’ll need to supply a third party with a lot of sensitive employee data. By handling it internally, you remove this requirement and reduce the risk of this information being lost, leaked or mismanaged. You’ll still need someone internally – even the best HR service can’t handle every detail of your day to day HR requirements. Because of this, you’ll always need someone internally to handle recruitment and other small scale, day to day duties. What’s best for your business?
The final decision on internal v outsourcing should always come down to your needs. Don’t settle for one or the other. Make sure you get the support you need. Weigh up the positives and negatives of all options and make the right decision for your business. Outsourcing won’t always be the right option. Neither will hiring internally! Every business will benefit from having aspects of both options though. Make sure you have someone internally to handle the day to day stuff. Your MD could do this. You can then use an outsourced HR team for any bigger issues HR.
How They Can Integrate With Your HR Team
As we’ve already touched on, an outsourced HR service can also be used to improve your internal HR team. By working with a service like ours, your team are able to focus on the day to day tasks. You can also diversify their workload! By giving them shoulder to lean on, you can also improve their sufficiency. Our clients see our HR team as an extension of theirs. When implemented correctly, integration shouldn’t be an issue for your business.
Outsourcing is a fantastic option for start ups and SME businesses. But it’s by no means the only option. At the end of the day, you need to make the right decision based upon the needs of your business. If you’re looking to outsource, why not get a no obligation quote from our team before you leave? Simply complete the contact form and we’ll get straight back to you. Alternatively, give us a call on
08450 50 40 60 to discuss your requirements!