When people start up a new company it can be both exciting and challenging; there are so many new things to learn and to put in place. Whilst companies are keen to focus on providing their goods and services, many are held back by their admin and paperwork.
One major area is the HR function. It covers everything from recruitment to staff benefits and salaries. The bigger the company grows, the more time will be required to oversee it. As a result, more and more people are outsourcing this area to external HR companies. We will now discuss some of the reasons why this might be a good idea for your business.
Assistance With Recruitment
It’s possible for specialist third parties to advertise the vacancies and to assist with the interviews. They can also perform the necessary background checks and oversee the probationary periods for the successful candidates.
You can also take on additional HR support for small businesses. Providers such as Spencers Solicitors can offer a range of services, including the creation of employment contracts, help arranging interviews, background checks and more. Third parties such as these can use their expertise to incorporate such things as maternity/paternity leave or grievance/disciplinary policies within the wording.
A Pool Of Resource
If a company employs its own HR staff, time needs to be spent on the induction and ongoing training. Should a person leave, the whole process has to repeat itself. The benefit of using external HR specialists is that they can provide a whole team of qualified workers, many of whom specialise in different areas.
Every employee will bring different needs to their company. As the number of staff increases, so will the complexity of the HR function. When CIPD qualified professionals are gained through outsourcing, they are best placed to cover every area.
When aspects of employment are externally regulated, it can be a real challenge to manage. Legislation can affect a wide range of factors, from working hours to minimum wages, and from health and safety to paternity leave. If small businesses don’t stay abreast of all the changes, they can be penalised.
When outsourcing is achieved, it’s easier to stay compliant. The third parties will be familiar with the law, including any recent changes. Should a business be externally audited, the process can become far less stressful as a result.
An Extra Contact Point
Once the work has been outsourced, employees can contact the external company directly with their HR queries. They could be regarding anything from holiday requests to questions about salaries and expenses. In turn, this frees up the small business to focus on its business plans and daily duties.
An Objective Voice
The HR company can make its own assessment of your business needs. It can also comment on sensitive matters like staff discipline or restructures and redundancies. Because they are objective on such issues, staff will be less likely to feel targeted or victimised.
It’s advisable to find a quality HR provider and to stick with them. The longer they work for you, the more valuable their input will become.