Many small to medium-sized organisations will try to allocate various HR tasks to employees such as Mangers & Directors and sometimes this may cause issues. What’s more, having to do these additional tasks can this take away their valuable time from other more important revenue-generating activities. Also not fully understanding the complex HR processes & procedures may leave a business very much exposed to unnecessary risks and other cost implications.
The cost of doing business can be quite high, especially when your business is just getting off the ground. While it’s natural to want to do everything in-house, great business owners understand the need to outsource certain functions to specialist outsourcing companies. One of the best cost-saving measures you can make is to outsource your HR to a professionally led HR support business. Doing so will not only give you an excellent chance to move your HR functions over to their care, but it will also allow you to get on with the things you do best… that’s running your business.
Some benefits of outsourcing including:
- Cost. It takes a great deal of money to fully staff a human resources department, a cost that can’t easily be borne by the average small business. Even though the costs are high though, it’s still necessary for even a small business to have a skilled Human Resources Manager. By working together with another company to outsource your HR function, then any money that would initially be spent staffing your HR department can now be proactively used towards growing your business.
- Flexibility. Outsourcing your HR functions to a specialist company will give you the flexibility to free up other vital human resources within your business. So whilst you might be able to afford to hire a HR Manager, that money might be better used to bring in more frontline employees, such as sales, or perhaps to invest in new technology.
- Employee benefits. It’s also important to remember that the specialist companies that provide HR support can also help your employees in other ways. For instance by working together, you might be able to offer your employees improved benefits packages or access to low-cost healthcare. Quite often it can be your employees who benefit the most when you choose to work with an outsourced HR company.
- Hiring and firing employees. A business owner might wish to work with an outsourcing company, especially if the business owner isn’t used to the processes & proceedures of recruiting new workers or indeed handling disciplinary matters. So the tasks of hiring and firing employees could be left as a task for your specialist outsource provider, thereby saving you the stress and worry of going through any disciplinary action.
However, it is very important to remember that whatever the nature of your contract with your outsource provider this will determine what each of the parties are, or are not, responsible for. So if you are uncomfortable with the idea of having another company take care of the hiring process, then at FSEV we can tailor make you a HR plan which will include or exclude various options within your HR support contract. In essence it’s up to you how much control you want to have, and what you as an individual want to be a part of. Always remember even though your outsourced HR company maybe handling all of your various HR tasks on your behalf, it is you who will ultimately be responsible for ensuring compliance and staying within the realms of employment law legislation.
