From time to time we can all do with some assistance to manage the demands, pace and challenges of the modern workplace.
Finding time to complete routine tasks let alone essential ones is an ongoing challenge, and so it appears is finding the best way to deal with Human Resources (HR) - related matters.
The role of HR is crucial in the workplace. It is also time consuming, complex and draining as it has to deal with a whole workforce and all of the issues, tests and stresses that come with it.
As a result the process of outsourcing all or part of the HR role has become more popular. It means sub-contracting the HR functions to an external supplier, which has been found to provide a range of benefits.
It is predicted that the global human resource outsourcing market will continue to grow in the next four years (1).
HR is a key part of any organisation as it centres on staff and covers a range of areas. This can include recruitment, training, ensuring employee welfare and a safe working environment and also raising awareness of ever changing employment legislation.
There are five key roles that are covered by HR:
Executive role – specialising in people management.
Audit role – ensuring essential policies such as health and safety are being correctly observed.
Facilitator role – ensuring goals are being achieved and standards met
Consultancy role – advising, supporting and guiding mangers in relation to dealing with any matter of concern.
Service role – raise awareness of any policy changes.
Do not be mistaken in thinking that HR outsourcing sounds like a good idea because it absolves the business of good people management practices and overall responsibility for the provision of HR services, because this is not the case.
The main advantage of sub-contracting HR is that it can help to reduce costs in not having to hire permanent staff for the role. Figures from a leading recruitment firm reveal that the average salary for a HR manager is just under £46,500 (2).
Other benefits to outsourcing include increased efficiency and access to expertise, the service can be tailored to meet an organisation’s needs, training can be provided by professionals knowledgeable of current legislation and the employer is not liable for any errors.
Large companies will often have a whole department to specifically deal with all HR matters. However they may also contract out parts of the role such as payroll and recruitment, which can help to cut costs. The main reasons cited for doing so is access to skills and knowledge and to get better quality support than that provided in-house
There is a contentious employee-to-HR ratio to help businesses owners calculate the level of HR support they need (3). And for smaller businesses the key question is do I really need HR?
The simple answer is, yes. Regardless of the size of the enterprise there will be at least one employee, which means there will be a human resource need.
The decision to outsource HR is an important one and getting the right support is crucial. There are two main factors to consider.
The type of support needed.
This will depend on the nature of the business. The support can be varied and include ensuring the business meets its legal requirements in terms of policies and contracts, deals correctly with any employee issue or concern such as disciplinary or grievance matters and provide expert help in redundancy situations
What service do I want?
This can include a telephone helpline where assistance, support and guidance is just a phone call away or face-to-face support where the HR specialist gets to know the business, staff and culture.
Castle Associates provide dedicated specialist HR support when you need it (4). Our dedicated advisers are here to help. Get free confidential advice with no obligation. Call us today on 0333 772 0611 or request a call back.
1. Global Human Resource Outsourcing Market Outlook to 2022 - Accenture, ADP, IBM, Infosys, and Randstad are Leading the Market - ResearchAndMarkets.com [Internet]. 2018 [cited 2018 Jul 23]. Available from: https://www.businesswire.com/news/home/20180523006225/en/Global-Human-Resource-Outsourcing-Market-Outlook-2022
2. Human Resources Average Salaries in UK - reed.co.uk [Internet]. [cited 2018 Jul 23]. Available from: https://www.reed.co.uk/average-salary/human-resources
3. Ratio of employees to HR staff, labour turnover rates, recruitment and retention and other essential HR metrics for 2017 [Internet]. Bond Williams. 2017 [cited 2018 Jul 23]. Available from: https://bondwilliams.co.uk/ratio-employees-hr-staff-labour-turnover-rates-recruitment-retention-essential-hr-metrics-2017/
4. Employer Support [Internet]. Castle Associates Ltd. 2014 [cited 2018 Jul 23]. Available from: http://castleassociates.org.uk/employer-support
For free employment law advice or if you are affected or want information and support by any of the issues in this article please give us a call. 0333 772 0611