Outsourcing HR (human resources) can seem like a luxury for many small businesses, one which they don’t see the point in paying for. For some, however, it is absolutely essential.
When you are first starting your business, it is tempting to take a contract of employment and employee handbook off the internet, change the logo and never give it a second thought. But this can lead to trouble further down the road if there is a dispute with an employee.
That is why, for many business owners, outsourcing HR is seen as an insurance policy against future litigation. More than that, though, outsourcing HR can make your workplace far more harmonious and fair.
Is Outsourcing The HR Function Worth It?
If you don’t intend to hire any staff, then you don’t need HR. But if you have even just one member of staff, HR becomes vital to any business.
The purpose of HR is to protect you and your employee from each other. That is quite a cynical way of looking at it, but it is essentially true. HR makes sure the rights and obligations of each party are clear, legal, agreed and upheld.
Many of the elements of Human Resources have a legal side to them, so it is always advisable to have them undertaken by a professional who is trained and certified.
Not many people would represent themselves in court, carry out their own dentistry, or fix their own electrics. HR is no different. The implications of getting it wrong are so great, you employ a professional to do it for you.
Benefits Of Outsourcing HR
Outsourcing your HR function to a professional will have many benefits to your company.
The first and most obvious being you can be sure you will be compliant with all the latest employment law. Not only that, but your employment contracts will be watertight, tailored to your business and fair for both parties.
Should the worst happen and an issue arises with an employee that ends up at a tribunal, you will be confident you are compliant and not open to blame or criticism.
HR can be time-consuming, so outsourcing your HR means you don’t have to spend valuable time on it when you could be doing something else.
Risks Of Poor HR Management
Having poorly managed or non-compliant HR in your business can have grave consequences.
No one wants to think their lovely, hardworking employee will turn on them and take them to court but it does happen. No matter how much we want to trust our staff, it is always wise to protect your own interests. Plus, good HR protects them too, allowing everyone to just get on with the job.
Not having watertight or suitable HR policies and contracts can lead to:
• Civil action
• Criminal charges
• Damaged reputation
• Difficulty recruiting
• High turnover of staff
• Reduced productivity
Managing staff disputes, disciplinaries and grievances can be very time consuming and if they don’t go well, costly.
What Functions Can Outsourced HR Perform?
Outsourced HR can take one of two forms.
You can either have an HR professional as a consultant for specific projects or have one on a retainer to carry out regular activities.
One-off projects might be:
• Contract reviews
• Document preparations
• Performance reviews
• Workplace mediation
Having an HR professional carry out these activities mean you will be compliant with the latest guidance. Just as with criminal law, HR and employment law changes regularly as new precedents are set. It is up to the job of an outsourced HR professional to be abreast of the latest regulations.
Not only that, but you can get on with doing your own job!
If your company employs several staff or you really don’t want to do any HR yourself, having an HR professional on retainer would be beneficial.
Absences, holidays, and people management will run smoothly and be kept up to date and compliant.
Outsource Your Human Resources Today
There are many benefits to outsourcing your HR, not least because it saves you time and money, but it keeps you compliant and removes any doubt that how you are operating is correct.