HOW OUTSOURCING HR CAN BENEFIT YOUR BUSINESS?



When was the last time you wished you could contact someone in HR, or searched your way through google because you were unsure on a staff issue? Have you found yourself in a situation where you have needed to dismiss someone or make redundancies? Or perhaps looking to align your processes?


Human Resource teams are much more than just solving internal disputes or managing legal affairs. They aren’t just the bearer of good or bad news either. Instead, it is about building people and core values of the organisation, conducting fair legal practices. This helps keep you and your employees happy at work and maintain the overall health of the organisation.


Your people are the most important feature of your business. Their performance and attitude to work will directly impact the company and its full potential. Keeping your team happy and motivated, while attracting and retaining the best talent requires a well thought out HR strategy.


If you are setting up your business or working hard to grow revenue, implementing HR policies and processes usually take a backseat. However, as your business grows and the need for your one-man band to expand, it is vital to get a well thought out and structured HR framework in place to keep your team happy, ensure you are supporting your employees fully and using best practices to adhere to all legal obligations.


HR News UK says small companies can better compete in an industry against the giants if HR is outsourced. As a small company, you'll be able to snatch business opportunities as a nimbler organisation because you'll have outsourced HR. Revenues will be able to grow so that your small business can survive and thrive.


While larger companies have HR departments, in small businesses you may find the need for HR but on an ad-hoc basis whenever the need arises. Outsourcing some or all, of your HR functions can make a lot of sense. Access to external expertise is just one benefit of outsourcing HR – there are many other reasons why it may be worth considering for your own business.


According to the UK Chartered Institute of Personnel and Development (CIPD), around 39% of small and medium-sized businesses outsource some of their HR functions in the UK, with payroll the most commonly outsourced HR function.


Main Advantages of Outsourcing:

REDUCED COSTS

Having employees, you'll need an HR function to recruit, implement legalities, offer support and training, and most importantly pay them. Having a permanent HR resource and the cost of maintaining it can be significant – salaries, office space, resources etc. A freelance HR specialist allows you to pay only for the time that you need and saves you the money and time that it would take setting up your own HR team.


ACCESS TO SPECIALIST IT & TECHNOLOGY

A dedicated human resource provider will have specific expertise, IT systems and software, that may not be available in-house.


FOCUS ON CORE COMPETENCIES

Outsourcing your HR can help you to concentrate on the resources and capabilities or your workforce. Core competencies are critical to your business achieving competitive advantage and strategic strength.


RISK MITIGATION

Ensuring you comply with all the correct laws and regulations whilst protecting the interests of your business. For example, It could be incredibly costly if you are taken to Employment Tribunal by an unhappy employee.


INCREASED EFFICIENCY

As your business grows or demand changes, it is crucial to consider current workflows and productivity. It is important that companies focus on accomplishing future goals with strategies that increase employees' overall productivity. HR support can guide you in making your employees happier and more productive by providing positive training and enjoyable work environments that help retain talent.


SAVING MANAGEMENT TIME

The expenditure of management time dealing with, for example, a troublesome employee, can be saved by outsourcing an HR Consultant.


If your current approach to HR support needs to be refreshed, you may find the suggestions in this article useful. Small businesses rely on having a great team of employees to be successful and grow therefore it is imperative that you have a proactive approach to HR.


If you have any HR-related needs, find out how we can help or get in touch at 01293 526859 or info@lwbs.co.uk