A well-managed and effective Human Resources department is essential in running a successful business. It can, however, be incredibly time-consuming, confusing and expensive. This is why increasing numbers of companies are now choosing the option of outsourcing their HR requirements to professionals.
Here are our 7 reasons why outsourcing your HR will prove beneficial to your company.
Outsourcing your HR saves you money by:
- Reducing overheads to house physical staff in your office
- Being cost-effective vs employing staff
- Being able to adjust the HR service that you access
- Allowing you to be in control
Having an onsite HR team will require designated office space and a variety of onsite resources, adding significantly to your overheads each month. This is coupled with the fact that experienced and highly qualified HR staff are also very expensive to hire. For many smaller businesses, it simply isn’t possible to financially accommodate these so outsourcing HR is the most cost-effective solution. Additionally, businesses are constantly changing and adapting which may mean your HR needs are also constantly changing. By outsourcing, you are able to adjust the HR services that you access, ensuring you are in complete control of the costs of your HR provision.
Outsourcing your HR saves you time
There are many different areas that you could outsource which will free up your time to focus on your business growth and development. Research has shown that business owners on average work for 50 hours a week. Yet only 30% of this time is spent on business functions whilst the rest is spent on administrative tasks. Freeing up time you would be spending on HR tasks will help you to improve you’re the efficiency, focus, and productivity of your business.
Outsourcing your HR improves your compliance
Employment legislation is an ever-changing and complex world. Failure to understand and implement legislation could prove incredibly costly for businesses which is why it is essential to have a tight grasp on the areas which affect your business. Outsourcing your HR will mean that you are able to leave these concerns to an expert team who will be able to guarantee your compliance, safeguarding your business and your employees. You will significantly mitigate your risks of non-compliance by working with a specialist HR firm.
Outsourcing your HR will improve your responsiveness to change
As your business is adapting to changes in the business world, there is a need to be as responsive as possible to the need for change when it arises. A quick response isn’t always going to be easy if the change relates to an area which your business is unfamiliar with, or if there are more pressing matters which need to be attended to within the business. By outsourcing your HR, you can rest assured that the responsibility for change is left to the HR experts you are working with, ensuring that your response is far quicker and more measured than it may otherwise be.
Outsourcing your HR improves your efficiency
Allowing you to focus on and prioritise the most important developmental areas of your business.
Ensuring that your business has effective systems in place will streamline your day-to-day processes and ensure that your business is working as efficiently as it can. HR companies are likely to have tried and tested systems and approaches that they can establish for you which eliminate the need for your own trial and error. The HR company will also be able to monitor the effectiveness of new systems and processes, determining the impact and evaluating whether additional systems need to be implemented. By outsourcing your HR you know that it is being run as efficiently as it can be whilst you focus on the developmental areas which are of the highest importance to you.
Outsourcing your HR will improve staff retention and happiness by:
- Helping you to offer additional services and benefits
- Getting involved with training schemes and employee development
- Ensuring your staff feel appreciated and respected by having fair and impartial systems in place
By working with an HR firm, there is a good chance that you will be able to offer your employees additional services and benefits that you would not be able to offer ordinarily. Many HR firms will also offer training schemes and employee development programs that your staff will have access to. These factors combined are likely to make your employees happier and more secure in their roles, which will, in turn, improve their productivity and your staff retention rates. Outsourcing your HR to a company like Altum HR allows you access to highly qualified and experienced professionals when you need it.
If you’d like to find out more about our services and the best way to outsource your HR function, get in touch and we’d be happy to discuss.