How Outsourced HR can work for your business
How Outsourced HR can work for your business
You may decide that your business needs extra support and that you would benefit from outsourced HR. However, your in-house HR team could react negatively to this decision and be reluctant to embrace the additional resource. Therefore, it is important to know how to handle this situation in case it were to arise. Outsourced HR can bring many benefits to your business, so it is vital to know how to handle conversations with your in-house team surrounding this topic if you are thinking of bringing this into your business.
There are so many branches within HR. That is why many businesses may find it easier to reach out to specialist companies, rather than employing someone in-house. As well as this, outsourcing HR can offer additional value to your business.
Benefits of Outsourced HR
- HR Consultants are fully trained in the specific field you need help with. You can be confident that they will be equipped with the necessary skill set to tackle any HR issues you may face.
- You can be sure that they remain legally compliant and up to date with HR developments, legislation, and Employment Law updates, flagging any future changes that may impact your business.
- Your business can focus on its core business needs rather than HR.
- You can reduce costs to your business in many ways. Firstly hiring outsourced HR is cheaper than hiring an internal HR advisor. In addition, the cost of poor people management can be substantial. Companies could experience hefty claims at employment tribunals for not complying with legislation. A specialist from an HR consultancy will have a better understanding of the law, meaning less chance of breaking legislation.
- Saves management time. The manager will not have to deal with cases and have their time taken up by this.
It is unsurprising that HR teams can sometimes be apprehensive of the introduction of external HR. They may feel as though their position within the organisation is threatened. Fear begins to run through their head in regard to:
- Are they reducing staff?
- How does this affect my position?
- Am I going to be let go?
- Do they think I am incapable?
Helping your team to understand why you are making a change and how it would affect them can help ease any unrest. If you do not address the concerns, it can lead to distrust and performance issues.
How to have the conversation
Have a conversation with your in-house HR team so that there is clarity on why you are deciding to outsource. As well as this, it will help to reassure them that their job is safe. It is important to have this conversation. Without it, they may feel as though their position is threatened. Having an honest conversation straightaway minimises the concerns that they may have. If these concerns are not addressed, it could lead to distrust and performance issues within your team.
Start the conversation off by explaining your vision for the future, which involves outsourced HR. Describe what it will look like for the whole company and for each individual on your HR team. By painting the vision for them, they are able to visualise the benefits that outsourcing will bring. This will help them to better understand the decision of outsourcing.
Visualise the benefits for your in-house team. For example, the outsourced HR teams can help with the daily tasks and advise them on the more complex issues. Meaning they are resolved easily and quickly. Both of these actions will allow the in-house HR team to have more time to spend on more strategic tasks.
Once you have set the vision, you should explain how this vision would be made a reality. It is important to be confident and specific. Having a positive attitude will help to influence your team to embrace the change and be positive too. You should acknowledge that the transition might initially be uncomfortable for them. However, explain that it is a necessary step to help improve the business’s activities.
After having this conversation with your team, it is important to allow them to ask questions. This will reiterate the focus on communication and transparency. Ensuring that your HR staff understand this decision is to empower them, not to compete against or replace them.
Examples of Successful Outsourcing HR
Our team of HR experts at HPC has provided additional support to businesses with established HR in-house teams. Below are some examples of how they have supported them and why it was so successful.
‘I have supported a business recently with their new appraisal system. They wanted someone with specialist knowledge and with an understanding of different industries and practices to help reinvigorate it.’ – Lauren Long, HR Consultant MCIPD.
‘I provide support to Group Head of HR to a large company which has several arms to it in Liverpool. I liaise with her on a daily basis about a variety of aspects of HR and she often calls me to ‘double check’ she’s doing the right thing. If you are on your own in an HR role it can be difficult as there is no-one to bounce ideas off or have a ‘can I just run this by you?’ conversation. She’s found it invaluable as she can now call me to pick my brains whenever she is unsure or just wants a second opinion or confirmation that she’s right.’ – Daniel Meyer-Lopez, In House Lawyer and HR Consultant.
We are an award winning national boutique HR, Employment Law, and Health & Safety outsourcing consultancy. We support businesses across the UK from a variety of sectors. Since establishing in 2007, we have developed and built a team of highly trained and skilled professional experts who can support your business in this specialised area and help you to reach a decision or resolution best for you.
We are a boutique HR provider who unlike larger HR providers, have a real interest in getting to know your business, its needs and objectives, and culture. We pride ourselves on building strong personable relationships with our clients and provide them with an exceptional service. This is highlighted through our 98% client retention rate.
We can work alongside your in-house HR department to provide additional support when needed. We take our time to understand your business to ensure that we are on the same page as your in-house HR team in order to get the best result for your business.
‘HPC have helped MJF upskill our managers giving them the tools to manage their team’s performance more effectively. I have already seen an improvement in terms of outputs. The help received has been invaluable and I look forward to with working High Performance to improve even more, thank you HPC!’
Mike Flynn – MJF Accountancy
If you have any concerns or would like to discuss outsourcing HR further, please get in contact with the HPC team today. We would be more than happy to talk you through the process.
T: 0844 800 5932