Every business which employs staff should have some kind of human resource representation; whether it is for the purpose of producing contracts, attending grievances and disciplinaries or to assist with the recruitment process. As the business begins to grow, many small businesses fail to even consider their need for HR support and the implications of not using this service on their business. For instance, hiring employees without an employment contract can be damaging for the business. It could lead to employee tribunals, theft of confidential information and it doesn’t give the employer a leg to stand on if the employee is under performing.
In my experience, I have spoken to clients who are worried about poor performance, misuse of IT and basically employees failing to adhere to the code of conduct, which is why they call for some support on their employment contracts (or lack of.) An increasing number of businesses, particularly small businesses, are realising the implications of a lack of HR support and are using outsourced services instead of employing HR people. There are many benefits to outsourcing your HR function, rather than hiring full time employees.
The main reason why businesses choose to outsource their HR function is for the purpose of cost saving. A small business can’t afford the costs associated with a full time HR employee and with only a few employees, do you really need one?
Unless you are employing and recruiting a high number of staff each year, you probably don’t need a full HR function. Hiring an HR Consultant when you need them can provide the flexibility you want. For instance, when you want to recruit a new member of staff but don’t have the time to advertise, shortlist and interview; the HR support can do this for you. You may just need a few contracts or someone to sit in a disciplinary with you and outsourcing HR can offer this level of flexibility.
Lack of In-House Talent
HR is a skill and if you aren’t qualified and experienced in it, you might not know where to begin. Any business owner will have their own skill which has led them to be in such a successful position but they may not have (or in many cases, enjoy) people management. If you don’t have the in-house talent to undertake it for you, it makes sense to outsource the HR function.
Focus on Other Aspects
The daily tasks associated with HR can take up a lot of time; dealing with those inevitable issues that come with employing staff and the long process of trying to recruit a new staff member. When managers have to undertake these themselves, especially if they are a small business, it can take up far too much time, which could be used to focus on the business. The more the business grows, the more these issues become a problem and without the help of an HR Consultant, this can prevent the business from developing further.