Having access to effective human resources support and advice is essential to any company, especially if you are growing your business, as it is very time consuming managing the HR processes in-house. By outsourcing some, if not all of your HR processes outside of the business can save you valuable time and money.
Using an external provider can have many advantages, such as:
Skills and knowledge – hiring someone from a specialist company will ensure they have been fully trained in that one specific field and will have excellent knowledge. Someone in-house may not know something as in depth as a specialist.
Increased legislative compliance – specialist companies will have more of an understanding of the legislation that surrounds HR subjects, ensuring legal compliance.
Efficiency – companies can focus on their core business process rather than human resources when they outsource their HR.
Reduced costs – hiring an HR adviser can often result in a high cost, in comparison to outsourcing to specialist companies. The cost of poor people management can be substantial and if a company fails to comply with the law, they could be faced with a hefty claim at an employment tribunal and a large bill for the legal costs. A specialist will have more of an understanding of the law in their field, and will know it inside out, which would mean the chance of a tribunal for a situation is less likely.
Saving management time – the expenditure of management time alone in dealing with, for example, a troublesome employee, is wholly disproportionate in most cases.