What are the main advantages to outsourcing HR?
A Human Resources department is responsible not only for the day-to-day management of employees but also for a variety of functions including payroll, benefits administration, training and development, legal compliance and the maintenance of personnel files and confidential records. For many businesses, implementing and maintaining all of these HR functions in-house can be far too complex, as well as costly, and they have found that outsourcing their HR function has several advantages:
Depending on the size of your business, the cost of any internal HR resource may not be affordable, especially for start-up companies. However, as a business grows there will be a need for experienced HR staff and additional office space will be necessary to accommodate this expansion. In these circumstances, companies have to consider if it would be more beneficial to outsource their HR function. One benefit of outsourcing is that the costs are variable and allow companies the flexibility to pick and choose the services they actually require as their business and HR requirements grow. Outsourcing costs can also be reduced if there is an unexpected downturn in business at any time.
Using an external HR provider like “Peach” allows a company the freedom to focus on the day to day running of the business while leaving the HR specialists to deal with the daily aspects of employee management. We will listen to your business needs and work with your managers in the business to understand your company strategies. By doing this, as HR Specialists, we can be integrated into the business and work closely with you, as and when required, rather than employing a full time internal HR manager which would generally cost in the region of £40,000 per year. Outsourcing HR also allows continuity of service as you do not have to worry about the company’s core functions suffering if a key HR employee leaves. i.e. As an outsourced HR provider, we will be there to assist you at all times giving you the freedom to spend less time filling out paperwork and more time to focus on improving the efficiency and effectiveness of your workforce.
When do internal HR Managers have the time to keep up with changes in employment legislation that affect the workplace? As HR specialists we keep up to date with current employment legislation and will assist your business to comply with these laws, minimising the risk of any potential tribunal claim. We will also regularly review and update your company policies and practices in line with legislative changes to ensure compliance at all times.
Training and development of staff can often be overlooked when HR and managers get bogged down in their daily routine. At Peach, we can deliver bespoke and relevant training on site to managers and staff on a variety of HR topics whenever required.
Outsourcing HR can also help businesses to manage employee performance and development. As HR Specialists, we have the expertise to develop and implement performance appraisal schemes and performance development plans to ensure employees successfully achieve their objectives and ultimately meet business goals. This will allow managers to focus on the business strategy and improve the level of talent and expertise within the business for a successful future.
By choosing to outsource your HR function - either completely outsourcing it to an HR service provider like “Peach” or as a bolt-on to your internal HR department - you can focus on all of the commercial aspects of running your business and relax in the knowledge that you have the experience and expertise of an HR Specialist to call upon, as and when required.