Business owners and managers can spin many plates and wear many hats. Your title might be Managing Director, but we all know you’re also Head of Sales, Operations, Logistics, Estates, Finance, IT, HR… the list goes on and on!
Most people set up businesses because they’re top-notch at the thing the business does, not because they want to manage all these other departments. At times it can feel, lonely, stressful, and frustrating.
One piece of advice that you shouldn’t overlook is to delegate. Get someone else to do the boring bits so you can focus on providing your services and products to your customers. Our friends and fellow 10,000 Small Business alumni at Absolute Works have shared their insights into making your business’s HR run super smoothly so you can get on with what you’re good at.
What is outsourced HR?
People are an employer’s biggest asset. They make your business efficient and successful. They can also be complicated and unpredictable, causing business owners and managers a lot of stress and time.
Then there are areas that could be missed. How do you keep up to date with changes in employment law? Are you confident that your contracts and handbooks/policies are up to date and fit for purpose? Have your employers had the correct eligibility to work, driver’s license, and DBS checks carried out?
You don’t know what you don’t know! You can’t be an expert at everything, there are just not enough hours in the day.
Some organisations decide to outsource their HR function to a specialised professional organisation. This could include virtually all their HR processes or select specific components such as payroll or HR administration tasks. Outsourcing HR can take the pressure off overworked employees, managers, directors, and owners, and provide specialist advice and administration in the complex legal landscape of Human Resources.
Why should I outsource my HR to an expert?
There are many potential benefits to outsourcing your HR.
These can include:
- Reduced stress placed on business owners/ Directors and managers by having a team of specialists readily accessible at the end of a phone or email to help navigate HR employment issues.
- Reduced legal exposure. As an area of business that involves a lot of complex legislation, it is incredibly important to ensure that all elements of HR remain compliant, including administration.
- Freed up leadership and management time can be spent on the organisation; helping it move forward and succeed.
- Reduced costs and potential losses. An outsourced HR function will save money on the necessity to employ a HR team internally, giving you the option to have everything handled remotely, or in an advisory/ support capacity to a smaller in-house HR team.
- Increased efficiency. HR responsibilities are often given to someone who’s main job is something else, usually the office manager or the finance team. Outsource your HR and let them do their real job well.
- Access to in-house HR IT software without hefty up-front costs. This enables the organisation to give their employees access to management of holidays, cover and absences, and even clocking in and out.
- Employment documents and written communications can be issued and be stored electronically.
- Improved people management information and reporting (including people analytics) assisted by the reporting functions of our HR IT software.
- Capacity for HR to operate more strategically. An external HR function may mean that there is less emotional involvement in specific cases which can be dealt with more objectively.
- Safe and confidential support network for Director/Owner and Line Managers.
- Help to prevent animosity or breakdown in the employer/employee relationship
- Implementation of policies and processes that are right for your business, resulting in increased engagement, motivation, and productivity and reduced labour turnover, absenteeism, and presenteeism.
HR outsourcing does not absolve the organisation of good people management practices nor of overall responsibility for the provision of HR services. However, a good open relationship with an outsourced HR provider; good communication; well considered and written policies and processes, and provision of training in terms of people management will go a long way towards improving people management practices.
When and how should I outsource my HR?
The new Government made it clear that its “New Deal for Working People” would be a central part of its future plans, suggesting new employment legislation would be presented within 100 days……that takes us to 25 October 2024!
The impact of the legal changes planned by Labour will be significant. Adopting these changes will necessitate drafting new employment contracts, revising HR policies and procedures, and training managers on practical implementation.
With numerous proposed changes, HR’s role will be more crucial than ever in guiding the business through employee rights and minimising the risk of errors, legal challenges, and reputational damage.
Let Absolute Works relieve your HR headache and see how outsourcing your HR function could free up your time, reduce stress levels, and navigate the new legal landscape under Labour.
Absolute Works is a family-run business with a team of specialists who can help with a range of services. You will always speak to an HR expert who knows you and your business. We become an integral part of your team, hugely improving efficiency. You get the support you need, you get the consistency of advice, you reduce your risk exposure, and you get your time back. Give us a call to discuss how we can help you on 03332005153
“Instructing Absolute Works to take over all our HR issues has been an absolute godsend and a commercial decision we should have made a long time ago. They have assisted us effortlessly in streamlining our systems and procedures and their advice and knowledge are second to none. I would recommend any company who is falling short on their HR department to consider outsourcing immediately – it could cost you heavily in the long run if you don’t.”
Caroline Newman, Director, Newman Sales & Lettings.
