Why Outsourcing HR Makes Perfect Sense for Your Business
BlogHR Advice Posted: Monday 5th February 2018 by
In today’s busy world, running a small/medium-sized enterprise can be an all-consuming task, especially when smaller businesses simply don’t have the resources to dedicate to essential functions and in-house expertise.
Outsourcing the expertise you need in-house is an excellent way to navigate the resourcing requirements of your business. And, outsourcing HR management expertise makes perfect commercial sense.
However, as a business owner, weighing up the pros and cons of hiring in-house talent and outsourcing HR management can be a tough choice. Here’s why you should consider outsourcing your HR requirements to an expert.
Save money by outsourcing HR management functions
It’s not surprising that many SMEs simply choose to outsource their HR function because it costs them less than hiring the expertise in-house. The typical annual salary of an HR Director in the UK is more than £90K and the average salary of a Head of HR exceeds £68K. Couple this with any administrative support they many need, together with office space, IT equipment and accompanying legal costs/ professional service fees. For many SMEs, a fully functioning in-house HR department is not a realistic or justifiable expense, therefore outsourcing HR is by far the cheaper option.
Allows your business to focus on core competencies
The fact is, an HR department does not produce an end product. Although the function itself is essential for any business for a number of reasons (far too many to list in just one blog post), it is increasingly difficult to actively pinpoint a tangible outcome of HR, especially when things seem to be moving along very well with the majority of employees in your business. Outsourcing your HR means that you do not need to worry about taking up internal resources that could perhaps be spent focussing on the end product or service of your core business operation.
Improves your compliance
With legal obligations and employment law changing at lightning speed, especially as we hurtle towards Brexit, keeping up to date with people-related compliance can be a headache. Keeping abreast of laws and putting workplace policies in place that prevents wrongful termination, discrimination, and harassment claims etc. can be a minefield. Knowing that you are fully protected with just a phone call to your outsourced HR partner means that you can rest easy with a fully compliant business.
Latest tools and technologies
HR and people management technologies can be extremely costly. Employee CRM systems alone can run into several thousand pounds, and choosing the right system can be a minefield; choosing the wrong one, a mistake your business finances can ill afford. Your outsourced HR team will almost certainly be able to help you appropriately manage your internal people management systems and support you to choose the right software.
However, outsourcing your HR is only a positive experience if you choose the right supplier. Make sure that your HR service provider has the relevant experience and qualifications, can provide client references and is completely up to speed with the law, or you could be leaving your business wide open to a host of costly and potentially devastating legal ramifications.
The team at Human Results are the perfect outsourced HR partner for your business. Led by a fully qualified employment law solicitor, and backed up by CIPD qualified staff, you can be sure that your HR and people management matters are in very capable hands.
To discuss outsourcing your HR matters with Human Results, get in touch for a confidential discussion.