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Outsourcing your HR can be the path to lower overheads

When it comes down to it, business is all about increasing revenue – but with so much to do in the way of admin, how do organisations find the best way to balance their overheads when these tasks don’t generate any direct financial rewards?

One great way to ensure that management and team members can focus on money making activities is to outsource the admin to other professionals – and HR is one of the key areas where this can pay dividends, especially for SMEs.

Why outsource your HR?

As soon as you start employing staff, HR becomes a vital business requirement – but it can be pretty time consuming, especially if you don’t have any experience or training. Over the years, our clients have cited a number of benefits of outsourcing their HR requirements: here are the 10 most common ones:

  1. Control operating costs – a full time member of staff costs many thousands of pounds per year, but often, HR requirements for SMEs fall short of a full time, or even part time, position. It’s poor business sense to pay over the odds for something, however essential the role is.
  2. Bridge gaps in knowledge – even for companies that do have an internal HR department, there are often skills gaps that need filling, especially with more complicated matters such as TUPE transfers. Hiring specialist help as needed ensures that you have the right level of support.
  3. Free up existing staff for more suitable roles – often, general office staff or other team members are tasked with dealing with HR issues, due to a lack of specialist resource. The problem is, that the time they spend on this is probably much longer than an expert would need – plus they may offer a better ROI by focusing on tasks that their skills are more suited to.
  4. Complete compliance – employment law can be pretty complicated, so you need to ensure you’re completely covered and that your policies are watertight. Any gaps in your knowledge can leave you vulnerable.
  5. Streamlining processes – departments and their focuses often overlap, and any weak links in the chain can set off a domino effect, leading to issues further down the line. Professional HR support can keep those processes in check and running smoothly.
  6. Moving with the times – legislation gets reviewed, laws get updated, and subsequently, your responsibilities change. If you don’t have a dedicated HR professional in-house, these things can easily pass you by. Your outsourced HR company will make sure you’re always on top of things.
  7. Help with staffing strategy – are you getting the best value from your team? Are roles and responsibilities set up in such a way that you’re maximising the benefits from your salaried staff? An outside point of view can help you see things more clearly, and ensure your staffing is strategic and helping your business to grow.
  8. Flexibility – your HR requirements may be subject to huge fluctuations. You may have an ongoing need for payroll support, but other HR matters may not arise for longer periods. Or you might suddenly find yourself in the midst of a disciplinary or staff complaint, and need more intensive advice. Outsourcing allows you to adjust the support you pay for according to your current needs.
  9. Recruitment – finding the best staff can make all the difference to your bottom line, but the process can be laborious and decisions difficult to make. If you don’t have a team member internally to help with this, some outside assistance will keep your recruitment drive focused and effective.
  10. Best software – from payroll to pensions, holiday leave to absenteeism, almost everything is managed via computer these days. Your HR advisor will ensure you have the most appropriate, cost-effective software with the right functionality for your needs. Or even better, they’ll take all these things off your hands entirely, and manage it for you, offsite.

This is just a sample of the key benefits to outsourcing your HR, but ensuring compliance while managing costs is probably the most universal reasons for taking advantage of this service. If you need HR support or advice, but you’re unsure as to exactly how your business could benefit, please feel free to give us a call for a friendly, no-obligation chat.