5 reasons why HR outsourcing makes sense for SMEs

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Managing people can be time consuming and stressful for business owners, which is why many choose the HR outsourcing option. In this article I explain how this could benefit SMEs…

The term HR outsourcing simply refers to the process when a company turns to an external, third-party provider to handle all or part of their human resources function. For example, your business might have in-house admin support, but requires specialist advice to deal with recruitment, employment contracts or disciplinary issues.

Here are my top five reasons why SMEs should consider HR outsourcing…

Lower costs

Recruiting a member of staff to handle your HR workload can be expensive once you factor in their salary, pension and IT equipment. HR outsourcing means you only pay the consultant for the time you use, meaning you can benefit from advice from an experienced professional for a fraction of the cost of a full-time employee. By using a freelance HR consultant, you could potentially benefit from better advice for less money.

Access to HR resources

From the latest software to up-to-date contracts of employment, HR outsourcing enables a business to access everything they need to be legally compliant. Save time and money by using the most efficient software to handle all your HR functions, so you never have to worry about missing performance reviews or contract renewals. By being better organised, you will have more time to concentrate on running your day-to-day business.

HR expertise

Small businesses will often lack an in-house HR function with the necessary knowledge to manage their people and processes. HR outsourcing allows SMEs to access experienced experts who deal with employment issues all day, every day. When you need a staffing solution, you can get swift access to advice that adheres to the latest industry best practice.

Legal compliance

Falling foul of employment law can be incredibly costly for small businesses, so why take the risk? Remove the fear of receiving hefty penalties for accidentally breaching new employment legislation by getting advice from a specialist HR consultancy. I can recommend simple steps to ensure that your company remains legally compliant.

Better recruitment

Busy business owners often struggle to find the time required to implement robust and effective recruitment processes. From writing job adverts to making offers of employment, an experienced HR consultant can ensure your procedures are efficient and legal. This will make it more likely that you find the right person for your company, rather than just another bum on a seat.

Considering HR outsourcing?

Before you take the plunge and adopt HR outsourcing, I recommend that you weigh up the positives and the negatives for your small business. You can either assess the areas you might need help with, or you can ask an experienced HR consultant like me to carry out an audit of your current policies and procedures.

Whether you need remote support or one-off assistance, I offer business owners straightforward, professional advice on a flexible basis offering a PAYG service, so you don’t need to be tied into a monthly fee. In my experience, many larger HR companies tie employers into a monthly fee, irrespective of whether they use their services or not. There is usually a 12-month contract which includes penalty clauses if you end the arrangement earlier.

I offer a PAYG service, so it’s totally flexible with no lengthy contracts or penalties. JT HRConsultancy is an established HR services company based in Bedfordshire with clients across the UK. If you think you need help, contact me today.

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