Benefits to Outsourcing HR
Published on October 4th, 2021 | by Sophie West
What are the benefits to outsourcing HR? Well to put it simply, it saves you money, you have the support when you need it, you will receive impartial advice and HR expertise. Read on to find out how…..
What is the first thing you think of when you hear the words Human Resources? You are probably thinking that HR are there to ‘sack people’ or to ‘tell people off’. You are right to an extent and HR do support in those tasks, but do you think about reward and recognition when you think of HR? Succession planning? Your people strategy? People are the pinnacle point of your operation.
HR also deals with any employee related issues including everything employee related such as someone who is not following reasonable management instructions or taking boozy work lunches.
However, we understand that some companies may not have as many employee related issues as others, therefore you should consider outsourcing your HR. Agility Risk & Compliance can objectively support your people operations at all levels, and are an extension to your team.
During this blog, we will look at the benefits to outsourcing your HR.
It can save you money
The level of the role will dictate the salary you pay. For example if you employ a HR Administrator to support your people operation, you will need to pay the national minimum wage, which is currently £18,532.80 for 40 hours per week. A HR Managers salary will be even higher.
These salaries may be best utilised by considering other alternatives. Have you ever thought whether the role warrants a full time or even a part time employee? What experience – do you need someone who has had exposure to a wide range of employment related issues and understand employment legislation.
Outsourcing your HR can save you hundreds maybe even thousands of pounds a month, and the support is there for when you need it.
So look at the balance and your people strategy based on your organisation strategy. Consider all options and be fully informed when making your decisions.
Whether it be administration or advice, to ownership of your people needs, outsourcing can cost you a fraction of an employee’s salary.
Support when you need it
SME’s (small to medium enterprises) may not need HR as much as a large company would. Purely because of their size. These SME’s may only have a handful of employees or not have many employee relations issues. No matter how many employees you have, there is always the potential for a problem to arise. This may be few and far between, but if you have outsourced HR, the support is there when you need it rather than employing a full time or part time employee. Additionally, they can support on projects as and when they arise for example, job evaluations or rewards programmes.
Impartial advice
It can be easy to base decisions on your own personal opinions, especially when it comes to your employees. This is natural as you can be sat too close to the situation. It is also common for managers to not always know how to deal with certain situations. They might not have dealt with them before. When outsourcing HR, the advice is always impartial and is never based on opinions or relationships. They will look at the facts of the matter and will make informed decisions based on the information provided, this ensures that the outcome is always fair, and it’s not biased in any way. Most importantly, mitigating risk of a costly employment tribunal.
HR expertise
Having an internal HR team or manager doesn’t always mean you can’t benefit from outsourcing HR. Many HR managers are in standalone roles but having outsourced HR too can mean they can use them as a sounding board or ask for a second opinion on more complex matters. It can be very isolating being in a stand along HR position when considering employment legislation. HR consultants are professionals in their field and can share advice and experience that a HR manager may not have had exposure to previously.
In summary, HR is needed in every business in every sector. If you have a minimum of 1 employee, you will need HR support. Take the stress away from trying to learn the legalities of employment law and let a professional help you. Just because they are outsourced does not mean they are not part of your team.
If you would like any further information about the benefits of outsourcing HR, please speak to our HR team on 01527 571611 or email us at hrsupport@agilityrac.com.
