The Benefits of Outsourcing HR Functions
Expanding your business and taking on staff brings many things – HR responsibilities included. One of which is the mental health of your staff. Add more staff to the payroll and you’re entering the realms of diversity issues, office relationships, banter and employment tribunals. A lot of potential HR headaches there! This post examines the benefits of outsourcing HR Functions.
That’s a lot of HR issues for one small business to handle. As if all that weren’t enough, an 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 how can you be competitive in these areas if you’re a small or medium-sized business? That’s one heck of an ask.
As a small company you won’t have the budget to have the requisite personnel on your own payroll. And, even if you do, HR issues are often a minefield. And minefields, as we all 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 cites increased efficiency and access to expertise amongst the benefits of outsourcing. 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. It’s 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 voices a note of caution about HR outsourcing. They suggest that ‘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 one that you can address 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 Go-Legal HR. That said, Go-Legal HR supports clients across the country.
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 his thirty-two years of experience to the job in hand, Paul works with small to medium sized businesses. 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
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