How outsourcing HR can help your business grow

Simon Edward • Sep 16, 2022

Running an in-house HR department is complicated and costly. Read on to find out how outsourcing can solve this – and help your business to grow.

How outsourcing HR can help your business grow

Running a small or medium-sized business is full of challenges. If you're in this position, you may already have experienced headaches related to the trickiest and most multi-faceted of areas – human resources.


Handling your own HR has its advantages, for sure. But as with any other area of operations that can be outsourced, there's always the danger that you're spreading yourself too thin. Because you care about your staff, you'll try to stay on top of compliance in all aspects of HR: training, payroll, health and safety, discipline… the list goes on and on.


But the hatchet hanging over any internal HR department is the very real risk of failing to comply because you have so much to think about. On top of that, your department will – of course – eat into your budget. Time, money, productivity – how can you maximise these while staying compliant?


Outsourcing could be the answer to your woes. In this article, we take a look at some of the most common complaints about having HR in-house, and how getting outside help could be the solution.


1. "I just don't have time for proper HR"


When you're running an SME, your focus is naturally on growth. The question is always: how can I build on my company's successes and take us to the next level?


It goes without saying that time is of the essence. And if you're tied up in red tape, contracts, recruitment, dismissals, and all the rest, you'll find the iron going cold before you have time to strike it.


Outsourcing HR can enhance your relations with employees. Because you have more time, and your HR provider is on hand to step in and mediate, you're more accessible, communicative and fast-acting. This helps foster that elusive but essential aspect of your business – a positive working environment.


An external provider can offer specialist advice regarding performance reviews, appraisals and staff development. As you'll know from your own experience, the purpose of this isn't simply to tick boxes – it's to boost relations with staff and help them to realise their potential, which in turn can increase productivity and growth.


When things go wrong with staff, you need to be sure that your disciplinary procedures are on point. Mishandling these procedures can lead to bad blood or even unfair dismissal. An HR provider is there to navigate you through the process, making sure things never get that far.


2. "I can't keep up with the legal side of things"


Employment law is constantly changing, and expecting the boss of a smaller business to keep abreast of each development is a big ask. It is, however, one of those things that separates the sheep from the goats – so it's worth opening yourself up to expert advice from the outside. Let them keep on top of changes to regulations so that you don't have to.


When you decided to go into business, it's unlikely you did so from a burning desire to write accurate, up-to-date policies, contracts, and employee handbooks. The same goes for health and safety policies and compliance with GDPR. 


Letting an external provider comb your documents for missing clauses can save you a lot of bother – at best, late-night rewrites, and at worst, legal crises, fines and compromised security systems. You're paying them for their expertise, which can only be an asset to your success.


3. "I can't afford to employ in-house HR experts"


Having an in-house HR department costs money. The exact amount will depend on the size of your workforce and the precise HR services you require.


Costs range from getting your annual audit done, updating software, purchasing office equipment, providing professional development… but above all, you're spending money on your staff – the "employee life-cycle", from attraction to separation.


Yes, staff are your biggest expense. And as a small or medium-sized business, you are naturally keeping a close eye on your budget. It's worth bearing in mind that hiring, paying and retaining an in-house team is often significantly more expensive than outsourcing.


In short, the challenges presented by having an in-house HR department can all be surmounted through outsourcing. Convinced? Then your next step is finding a provider – and here's where we come in.


What can we do for you?


At Milners, we provide bespoke, cost-effective HR support services. Our aim is simple: to safeguard your business's success and ensure your staff have all the support they need. We're a close-knit and experienced team of lawyers and consultants, and our HR services are delivered by a team of employment law whizzes – never (and we repeat: never) someone in a call centre.


Our services are scalable and flexible. You might just need the odd bit of expert advice – or, at the other end of the scale, a full-on rehaul of your HR department. We have the knowledge and experience to handle it all so that you don't have to.


How does it work?


Running HR in-house is never-ending. By contrast, our HR management service consists of four steps.


First, we listen. Whatever it is you're looking for, you contact us for a free consultation and share with us your requirements.


Secondly, we conduct your HR audit for you. (Is that a sigh of relief we can hear?) This involves reviewing your policies, procedures and systems, and identifying areas for improvement. Because we're experts in employment law, we can smell noncompliance from a mile off.


Thirdly, there's a service analysis. We want you to stay in the driver's seat, so we work alongside you to create a service plan. This is where the bespoke nature of our service begins to shine: this service plan is for you and you only – we never fall back on a one-size-fits-all approach.


Finally, we get to work implementing this plan. Throughout this process, we're on hand to offer advice and keep you in the loop.


If you're interested, don't hesitate to contact us. We'd love to be of service.

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