The Benefits of Outsourcing your HR Functions
The moment you take on people as employees and create that contractual relationship – even if only one employee – you have HR responsibilities. Add employees and the dynamics begin. From ensuring you pay them accurately and on time – perhaps the most important thing you should be doing – to the variety of representations of your duty of care to employees. Whether mental health, diversity, office relationships, banter, disputes etc, they are all aspects that can detract from your core business and that you may not want to deal with yourself.
That’s a lot of HR issues for a small business to handle. But there’s more to think about than that – as if all that weren’t enough. As this article from Forbes about the benefits of HR outsourcing points out, ‘With today’s emphasis on company culture and loyalty, the role of human resources management and the types of benefits a company offers has become increasingly important for a business’s future.’
But what if you’re a small or medium-sized business? How on earth can you be competitive in these areas? That’s a big ask. As a small company it’s not likely you’ll have the budget to have the requisite personnel on your own payroll. And, even if you do, HR issues are often a minefield. Minefields, as we know, are things fraught with danger. They need experts to traverse them without causing an epic explosion. And anyway, having your own in-house HR department might not be the best use of company funds. Wouldn’t you be better off investing the cost of a HR department on your businesses core activities? An investment that will, over time, fuel your business success.
As for the HR – Outsourcing is your saviour
According to the CIPD, the main HR function that businesses outsource is payroll. Hot on payroll’s heels is the provision of complex advice, including case management.
The CIPD cite the benefits of outsourcing as including increased efficiency and access to expertise. To return to Forbes: ‘some mistakes in HR management will not only hurt employee loyalty, but can lead to fines.’ It’s not sound business sense to trust HR responsibilities to an employee who either:
- Deals with these issues on a part-time basis only
- And/or has not had enough training in HR matters
Any mistakes made could turn out to be expensive indeed, and in more ways than one.
Better by far to bolster areas of weakness with an outsourced HR solution that is both cost-effective and expertise-effective.
Note that the CIPD voice a note of caution about HR outsourcing. They say ‘it can also present challenges, such as loss of local knowledge and processes and fragmentation of the service provided.’
That’s a fair point. But you can address it by finding, where it’s possible, your HR outsourcing support in your locality.
Should you be a Swindon or Wiltshire business in need of experienced HR outsourcing support then look no further than Paul Himple, who is Go-Legal HR.
About Go-Legal HR
Go Legal HR offer a comprehensive service focusing on all aspects of the legal compliance that goes hand-in-hand with employing people.
Bringing 32 years of experience to the job in hand, Paul works with small to medium sized businesses providing with their HR solutions. These are businesses that employ staff but neither have nor need a full-time, in-house HR advisor or manager. He also supports internal HR personnel lacking the necessary expertise in employment law.
The Go-Legal expert advice and hands-on help covers four key areas:
- Employment contracts, and policies and procedures
- Employee relations including dispute resolution and mediation
- Employment tribunal preparation and support
- Recruitment and selection
Go-Legal on Social Media
Why not check him out on social media and give him a call for your all your HR solutions?