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HR Services: The Benefits of Outsourcing
Every company needs to supply HR services for their employees. This is true whether it's a huge company with a department just for human resources services, or if it's a very small company with an employee, manager or owner performing HR duties. Human resources might not constitute a whole department at a small company but someone handles the duties of going through CVs, interviewing and deciding if someone is a good hire, orientation and training of new employees, helping employees fill out paperwork, making sure they understand their benefits and options, and much, much more. Even if these duties are split between several people, they are the very definition of human resources services.
Many companies exist which offer to outsource your HR functions or offer significant support to relieve your staff of such duties. HR Services Companies can provide the following services:
- Email, telephone and on-site support
- Management of documentation incl. employee handbooks, contracts and policies
- Training and development
- Performance management
- Employee benefits
- Recruitment and induction
- Absence management
- Employment tribunal indemnity
All of which can provide the peace of mind that comes with knowing you’re compliant with legislation, able to handle HR issues that arise and indemnified against tribunal losses.
HR Services: When to Outsource
A very small company is not going to want to outsource human resources services because it just wouldn't be cost-effective to do so. A good rule of thumb is too look at how long all employee-related issues take. If the owner of a company or a manager is spending between 15% and 25% percent of his or her time on employee-related issues that fall under the HR services umbrella, then it's worth considering outsourcing as an option.
Most small companies that have less than 20 employees won't have enough HR issues to make outsourcing a good idea. When the employee roster grows beyond that, HR services can grow to represent a decent chunk of time (and therefore money) that could be spent more wisely elsewhere.
HR Services: Compare Providers
Outsourcing to an HR company for a small business can cost substantially less than hiring someone in-house. A human resources services company can perform tasks in a few hours that it might take non-specialists several hours to do, freeing you and your employees to do other more productive things.
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