No matter what size your business is or how many people you employ, it’s always a good idea to have access to HR support.

Business owners can face all sorts of work issues and legal matters that might prove difficult to deal with alone. Outsourcing HR can prove to be most cost-effective, especially for smaller businesses.

Outsourcing your HR will help manage more employment sectors than you can imagine. Onboarding, employee performance, health and safety, legal requirements – imagine being relieved from these, by having them managed by another body. It’ll leave you to fully focus on what you set out to do – grow your business success and prosperity.

What is HR outsourcing?

HR outsourcing is as straightforward as it sounds. Hiring an HR representative can help you manage your employees and business requirements. 

For small businesses, this is especially useful. The benefits of outsourcing HR mean you can be lawfully and ethically covered just as much as bigger businesses.

It’s understandably difficult to manage HR issues with limited knowledge, time, and resources. And it’s fair to say that most employees didn’t set out to become experts in business legislation. 

So, trusting that responsibility to another body whilst you focus on business growth isn’t unreasonable.

Does your business need to outsource HR?

Access to human resources can help build and flourish all types of businesses. You can only benefit from having readily available help, support, and guidance from human resources.

Plus, if you accidentally mishandle HR issues, you could face costly fines and repercussions to your business – which might be hard to recover from. Outsourcing HR could prove to be cost-effective and efficient for the longevity of business.

If you’re undecided about whether to outsource HR, ask yourself the following questions:

  • Is my employee retention rate high?
  • Am I recruiting the most qualified and appropriate candidates?
  • Are my staff records updated and stored appropriately?
  • Do my employees have access to an employee handbook?
  • Are my workplace policies and procedures readily available?

If you’re missing a few ticks here, it might be wise to consider outsourcing your HR and get these things back on track.

HR roles and responsibilities

Having access to a HR officer or department provides guidance and shares the responsibility. The role of human resources is to ultimately help manage your employees’ needs as well as your business’s.

Here is a list of basic HR roles and responsibilities

  • Legal compliance.
  • Procedures, policies, and documentation.
  • Employee training.
  • Performance and conduct.
  • Brand-image and vision.
  • Employee recruitment and retention.
  • Compensation and benefits.

Benefits of outsourcing HR

As a business owner, you will inevitably face difficult employment situations daily. And when human resources matters are involved, it’s sometimes unclear managing them whilst thinking about the best interests for your business.

Whether to promote an internal HR rep or recruit one externally, here are benefits of outsourcing HR:

Dealing with personnel issues

It’s rational that some businesses might find it difficult to hire a HR professional for financial reasons. Whether you budget or take the numbers into consideration, it can still prove significantly costly.

But without HR, you (and your team) may be left to deal with legal and ethical matters and obligations alone. The burden of all can be lifted by a HR professional – they might be worth it in the end.

Managing employment disputes

The more employees you hire, the higher risks you could face in terms of employment disputes. Human resources can deal with harassment complaints, payment issues, and even claims of unfair treatment.

Managing such cases, without a clear understanding, can be burdensome. And if you mismanage them, the consequences can be detrimental for your business. You could risk facing tribunal hearings, compensation fees, not to mention business disruptions and possibly closure.

Keeping up with business expansion

Managing your business is one thing; but onboarding and managing employees can become time-consuming. And without the support or knowledge of HR, you might find yourself meeting employee issues you never anticipated before.

HR can manage everything from recruitment to performance to promotions; leaving you to focus on successive-based business aspects.

Meeting legal compliance

It’s fair to say most employers didn’t set out to learn about the intricate details of employment law. Learning which ones apply to your business, keeping up with legal changes, and actioning suitable ones – it can prove difficult and complicated.

Naturally, a HR representative will manage all legal situations for you. And keep your business updated with legal compliance. So, you can park the legal homework for now.

Final decisions

When looking for HR representatives, you will need to weigh up the significance of HR vs your business needs. The ultimate aim is to get your business to the level you aspire for.  Small businesses need to adapt quickly in a constantly expanding economy. So, by outsourcing HR, you can be reassured your workers are in safe hands; correctly and lawfully. Providing as much support, guidance, and care as you do.


This post was written by Paul Holcroft from Croner.