Strategic HR Solutions: Unveiling the Untapped Benefits of Outsourcing HR
Ian Hatherly
November 16, 2023
3
min read
In essence, outsourcing your HR not only saves you money but also provides support, impartial advice, and HR expertise precisely when you need it. Read on to find out how…..
When the term "Human Resources" comes to mind, the initial association might be with tasks like employee termination or reprimands. While HR does play a role in such responsibilities, it's crucial to expand the perspective to include aspects like reward and recognition, succession planning, and overall people strategy. Your workforce stands at the core of your operations.
HR addresses a spectrum of employee-related issues, ranging from non-compliance with management instructions to instances of indulging in unprofessional behavior such as excessive alcohol consumption during work lunches. Recognising that not all companies face the same volume of employee-related challenges, outsourcing HR becomes a strategic option. Opus Safety serves as an objective support to your people operations, seamlessly integrating with your team at all levels.
This blog will delve into the advantages of outsourcing your HR, shedding light on how this decision can positively impact your organisation.
It can save you money
The level of the role will dictate the salary you pay. For example if you employ a HR Administrator to support your people operation, you will need to pay the national minimum wage, which is currently £21,673.60 (£10.42 per hour) for 40 hours per week (aged 23 and above). A HR Manager's salary will be even higher.
These salaries may be best utilized by considering other alternatives. Have you ever thought whether the role warrants a full time or even a part time employee? What experience – do you need someone who has had exposure to a wide range of employment related issues and understand employment legislation.
Outsourcing your HR can save you hundreds maybe even thousands of pounds a month, and the support is there for when you need it.
So look at the balance and your people strategy based on your organisation strategy. Consider all options and be fully informed when making your decisions.
Whether it be administration or advice, to ownership of your people needs, outsourcing can cost you a fraction of an employee’s salary.
Support when you need it
SME’s (small to medium enterprises) may not need HR as much as a large company would. Purely because of their size. These SME’s may only have a handful of employees or not have many employee relations issues. No matter how many employees you have, there is always the potential for a problem to arise. This may be few and far between, but if you have outsourced HR, the support is there when you need it rather than employing a full time or part time employee. Additionally, they can support on projects as and when they arise for example, job evaluations or rewards programmes.
Impartial advice
It can be easy to base decisions on your own personal opinions, especially when it comes to your employees. This is natural as you can be sat too close to the situation. It is also common for managers to not always know how to deal with certain situations. They might not have dealt with them before. When outsourcing HR, the advice is always impartial and is never based on opinions or relationships. They will look at the facts of the matter and will make informed decisions based on the information provided, this ensures that the outcome is always fair, and it’s not biased in any way. Most importantly, mitigating risk of a costly employment tribunal.
HR support
Having an internal HR team or manager doesn’t always mean you can’t benefit from outsourcing HR. Many HR managers are in standalone roles but having outsourced HR too can mean they can use them as a sounding board or ask for a second opinion on more complex matters. It can be very isolating being in a stand alone HR position when considering employment legislation. HR consultants are professionals in their field and can share advice and experience that a HR manager may not have had exposure to previously.
In summary, HR is needed in every business in every sector. If you have a minimum of 1 employee, you will need HR support. Take the stress away from trying to learn the legalities of employment law and let a professional help you. Just because they are outsourced does not mean they are not part of your team.
If you would like any further information about the benefits of outsourcing HR, please speak to our HR team on 0330 043 4015 or email us at hello@opus-safety.co.uk.
Ian Hatherly
November 16, 2023
3
min read