Outsourced HR offers valuable support for business owners and plays a vital role in adding value and maintaining a business’s overall growth and profit. Over recent years there has been a growing trend of business owners outsourcing HR with a clear justification as to why; especially if you don’t have an in-house HR team. Outsourced HR is an effective and safe investment to support businesses in achieving their aims and ambitions.
What is Outsourced HR?
As an SME, you’re likely juggling numerous tasks daily to keep your business running smoothly. However, managing HR functions—such as recruitment, compliance, engagement, retention and employee relations—can quickly become overwhelming. That’s where outsourced HR comes in. Partnering with a professional HR consultancy can provide a host of benefits, allowing you to focus on what you do best: growing your business.
Outsourced HR services offer SMEs access to expert knowledge without the need to employ a full-time HR team. This is particularly valuable for smaller businesses that may not have the resources or expertise to manage HR in-house. By outsourcing, you gain a dedicated team that understands the complexities of employment law, regulations, and best practices.
One of the key advantages of outsourced HR is cost efficiency. You only pay for the services you need, eliminating the overhead costs associated with hiring and training an internal HR team. In addition, an HR consultancy can ensure your business remains compliant with ever-changing laws and regulations, reducing the risk of costly legal mistakes.
Perhaps most importantly, outsourcing HR allows you to free up valuable time. With the administrative burden lifted, you can focus on growing your business while knowing that your HR functions are in capable hands. In today’s competitive business landscape, outsourcing HR is a smart, scalable solution for SMEs looking to thrive.
Why do business owners choose to outsource HR?
With salaries in the UK continuing to rise and the average HR Manager salary between £60,000- £75,000 per annum, outsourcing HR has become a popular choice for business owners looking to streamline operations and focus on core activities. By outsourcing, companies can tap into specialised expertise without the overhead of hiring an in-house HR team. This is particularly advantageous for small to medium-sized businesses that may not have the resources for a full HR department.
A professional HR consultancy offer services like recruitment, employee relations, HR software management, and compliance with ever-changing regulations. This helps businesses stay up to date with legal requirements and avoid costly penalties. Additionally, outsourcing HR can reduce administrative burden, allowing business owners to concentrate on growth and strategy.
Cost-effectiveness is another key factor—outsourcing HR often proves more affordable than maintaining a dedicated team. It also provides flexibility, as services can be scaled according to business needs. In the end, outsourcing HR can drive efficiency, mitigate risk, and enhance overall productivity.
1. Business owners spend more time on their area of expertise
By outsourcing HR, you will usually have a team of CIPD qualified experts who are dedicated to supporting your business as it grows. Outsourcing HR takes the strain away from business owners and others within your team who have found their attention moving to areas outside their remit. As such, it allows business owners more time to focus their energy on areas of their expertise without the need to worry about HR related matters.
2. Cost effective compared to permanent employment
There’s no doubt that opting for an outsourced HR service is the most cost-effective option compared to hiring a permanent HR professional. According to the CIPD the average annual salary for a HR Manager is £59,951, whereas outsourced HR is great option for business owners who require dedicated support, advice and guidance but on a bespoke package basis and at a fraction of the cost of hiring an in-house professional.
Your outsourced HR consultancy acts as an extension of your team, as such they get to understand your values, goals, ambitions and help support those vital HR functions.
3. Peace of mind for employment compliance
Outsourced HR is a crucial service for business owners who want peace of mind that they are HR compliant and are following best employment practices. Outsourcing your HR function will ensure you are compliant with HR documentation such as policies and procedures, employment contracts, disciplinaries and grievances, performance and employee absence management, redundancies and restructuring.
By outsourcing to a team of HR professionals you will have peace of mind that you have invested in the expertise to reduce any legal risks further down the line.
4. Access to a HR team as and when needed
The beauty of outsourced HR is that you can have access to a HR team as and when you need their support. An outsourced HR team brings expertise and knowledge to your business from multiple sectors, supporting your business effectively to develop and grow. Typically, HR consultancies provide either flexible or retained HR support. This gives business owners flexibility when it comes to an outsourced HR solution.
5. Reduced time spent on HR admin
HR administration can be a time-consuming task for any organisation. Outsourcing HR can be both time and cost-effective when it comes to onboarding, compliance, payroll, annual leave management, performance management….and the list goes on!
In addition, your outsourced HR team can help to implement and maintain HR software that can streamline all heavy HR administration by automating tasks such as onboarding new starters, annual leave requests, performance management monitoring, storing all employee documents safely and securely and giving access to your company handbook. Many business owners choose to outsource HR to reduce the HR ‘headache’ and to implement a HR system to increase overall productivity.
And there we have the top 5 benefits of using an outsourced HR service!
Are you looking for outsourced HR support in Yorkshire or further afield?
At Norton Loxley we are a HR and recruitment consultancy who offer bespoke outsourced HR support to help businesses flourish across Yorkshire and the UK. We are passionate about working as an extension of your team, giving you peace of mind to manage all aspects of HR without the need to employ an in-house HR Manager.
Our team includes fully CIPD qualified HR professionals that can provide HR support and advice to growing and established businesses, bringing value to businesses to achieve their goals and ambitions. You can see for yourself in our outsourced HR case study.
As experts in our fields, there’s plenty of HR and recruitment services available that will bring a wide base of knowledge to support your businesses growth, goals and aspirations through your people. Get in touch to explore how we can support your business.
