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?

Outsourced HR is where a third-party HR consultancy works as an extension of your team, giving you access to a range of HR expertise, as opposed to hiring an in-house HR manager or department. Outsourced HR is particularly beneficial for businesses of between 1-60 employees as it gives you the opportunity to have access to a team of HR professionals without the cost implications of hiring an in-house HR team themselves. Outsourcing your HR can in fact save you time, money and energy!

With that in mind, let’s delve into the top 5 reasons business owners choose to outsource HR.

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 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.