Outsourcing HR: A No-Brainer for Your Small Business.

Running a small business usually means you end up wearing several hats at once. 

One minute you’re dealing with a customer, and the next you’re sorting out a payroll question, then managing an employee issue or trying to figure out if a policy is still in date. 

 HR can quickly become another task on an already-too-crowded list. And when something needs dealing with, it usually needs dealing with now.

That’s where outsourced HR can make a real difference. 

Rather than trying to handle every people matter yourself, you can bring in experienced HR professionals who can advise you when you need them, take care of the work that sits outside your expertise and give you some breathing space.

YOU DON’T NEED TO HIRE YOUR OWN HR PERSON. YOU JUST NEED GOOD HR SUPPORT.

For a growing business, employing a dedicated HR professional may not yet make sense.  The cost of employing someone can be significant, particularly when your HR needs are sporadic and don’t yet justify a full-time role.

That does not mean HR needs to be left until there is a problem.

Outsourcing gives you access to experienced HR professionals when you need them, without the overhead of building an in-house function.

That could be help with contracts, handbooks, recruitment, policies and day-to-day employee matters, or having someone experienced to turn to when something more complicated comes up.

A grievance, disciplinary matter or difficult performance conversation can feel very different when you have someone who knows what they’re doing to guide you through it.

And HR isn’t just about the big stuff. It’s the questions that crop up throughout the working week: “Can I do this?” “What should I put in the contract?” “How should I deal with this absence?” “Do we need a policy for that?” “What do I do about an employee who isn’t performing?” Having someone you can ask means you don’t have to spend an afternoon trying to work it out yourself.

It’s also about having someone to sense-check things, explain your options and give you confidence that you’re dealing with them properly.

And as your business grows, your level of HR support can grow with you. Your HR needs probably won’t be the same every week either. Some months might be relatively quiet; others might involve recruitment, an absence issue, a difficult conversation or a change to your team. Outsourced HR gives you the flexibility to get more support when you need it, without paying for a full-time HR role when you don’t.

KEEPING UP WITH EMPLOYMENT LAW

Employment law is not an area where guesswork is helpful.  And right now, there’s a lot to keep up with. Changes to employment law are coming through at a steady pace, affecting everything from contracts and working arrangements to sickness absence, flexible working and family leave.

For a small business owner, keeping on top of what’s changed, and what actually applies to your business can be a job in itself.

Having professional HR support means you have somewhere to turn when you’re unsure what you need to do, and someone telling you about the changes that matter to you.

It also helps keep your processes consistent and your documentation up to date, so you’re not scrambling to catch up when something changes.Good HR isn’t just about fixing problems when they arise. Getting the basics right early can save time, stress and potentially expensive mistakes later.

GIVING YOU BACK YOUR TIME

There’s another benefit that is easy to overlook. HR takes time.

Recruiting people, answering employee questions, updating documents and dealing with employee issues can all pull an owner or manager away from the work that actually drives the business forward. 

Outsourcing some or all of your HR means you can get on with running your business, while someone else keeps an eye on the people stuff.

Because your time is probably better spent doing the things that actually grow your business.

WHICH HR SUPPORT IS RIGHT FOR YOU?

There’s more than one way to get HR support, and like most things in business, there are pros and cons to each.

HR helplines and call centres - If you want to be able to pick up the phone and speak to someone when a question pops into your head, a helpline can be a good option. Some offer extended or even 24/7 support, so there’s usually someone available when you need an answer.

The downside? You’re unlikely to speak to the same person each time, so they may not know your business or the context behind the question. You’re generally getting advice rather than someone who will roll up their sleeves and help you deal with the situation. Some services can also be relatively expensive, particularly if you’re tied into a contract or subscription.

An independent HR consultant - Working with an independent consultant can give you a much more personal service. They can get to know you and your business, understand how you work and become someone you can call when you need help.

The downside is capacity and cover. They’re one person, after all. What happens when they’re on holiday, fully booked, off sick or decide to move on? For some businesses, that’s not an issue. For others, having that continuity matters.

An HR consultancy with a team - A consultancy with a team can give you the personal relationship of an independent consultant, alongside the reassurance that there’s someone else to pick things up when they’re unavailable. 

You can typically also benefit from a wider range of experience and expertise as your business grows.

The important thing is finding the right fit for your business. You want HR support that understands your organisation, gives you practical advice, reliable cover, and can take the work off your plate, rather than just telling you what you could do.

THINKING ABOUT OUTSOURCING YOUR HR?

At The Little HR Department, we help small businesses with the HR stuff, without the need for an in-house HR team.

If you’re thinking about outsourcing your HR, give us a call or drop us an email. We’re happy to have a complimentary chat about what you need and how we might be able to help.

Email hello@thelittlehrdepartment.com to find out more or set up a chat.

People are complicated. HR doesn’t have to be.