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Small Business HR

Small Business HR

Just like larger companies, small businesses require top-quality HR to ensure that they are as successful as possible. Many human resource issues are clear - from hiring staff to firing staff, it is important to have the proper procedures in place. For small businesses though, these procedures can sometimes be difficult to define.

To find out more about the range of HR options available for small business, simply take a look at the information on this page. Alternatively, you could visit our HR prices page to find out some specific costs straight away. If you are ready to compare top-quality suppliers immediately however, then you might prefer to fill in the form at the top of this page.

Comparing small business HR options is the best way to find a service to suit your business requirements.

Comparing HR quotes with Approved Index is free, quick and easy, and it could save you as much as 40%.

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Which Small Businesses Need HR?

The first consideration is usually the size of your workforce. The number of your employees determines largely how much HR support your company needs. If your staff reaches 100, then you should assign and delegate HR duties accordingly. But this is not to say that businesses with fewer staff can’t do the same. You will still need to factor in the following before you make a decision.

  • Do you have your employee files organised properly? Note that there are documents that should and should not be included in employee files.
  • Have you prepared and distributed an employee handbook? This manual should detail your main policies and procedures. It’s an essential resource for your staff.
  • Is a performance review process in place? Giving formal feedback can help employees gauge how they are doing at work.
  • Is your compensation system structured? This is where most of your funds go, so everything should be in order.
  • Are you devoting sufficient time and energy to recruiting employees? Even if you have just a handful of workers, your staff is your most important resource.
  • Is staff turnover high at your company? Can you pinpoint why? This could be for a number of different reasons and should definitely be addressed.

If you feel like there’s space for improvement in these areas but you can no longer tackle them on your own, have someone come in and help you turn things around.

Of course, if your small business is on the rise and prospects are upbeat, you have an even better reason to hire HR specialists. An HR presence can help ensure that best practices are in play when the company (and your workforce) expands. And, if strategic decisions are made, this can even help position your organisation for further growth. Being proactive and planning ahead is bound to pay off.

Number of Staff

Defining a small business by size can be difficult, however there are several sources that have suggested numbers that dictate the number of staff.

The table below includes a number of business sizes, as well as the number of internal HR staff that are usually required to manage that number of employees.

The figures are based on a professional ratio which suggests that, for every 100 members of staff, a business will need 2.7 people in the HR department. Based on these figures, many businesses will not reach the right level of staff to have even one dedicated HR employee. The ‘Outsource or Internal’ column indicates which option will generally be cheaper based on the number of staff.

Number of StaffHR Personnel RequiredOutsource or Internal
5less than 1 HR staffOutsource
10less than 1 HR staffOutsource
20less than 1 HR staffOutsource
501 HR staffInternal/Outsource
1002-3 HR staffInternal/Outsource
2005-6 HR staffInternal/Outsource

If your business employs more than 50 members of staff, then it might make sense to hire an internal human resources employee; however, even at this number it could potentially be an expensive choice.

Hiring a member of staff to work internally very often ends up being more expensive than outsourcing your HR requirements. Indeed, even businesses with 200 employees or more will outsource aspects of their human resources to either alleviate cost or to ensure quality.

Of course, there is always also an option for a small business to hire fewer internal HR staff, and then also hire an external agency to support their efforts. In many cases, this choice is made to ensure that more intricate processes are properly managed.


Small Business HR Services

As mentioned already, small businesses require HR services just as much as larger ones; with that said, it is important to bear in mind that the type or level of human resource required will vary.

The section above should provide some idea as to which businesses will need HR, but for more information, it is important to consider the following sections.

Basic HR

Small businesses will always require a range of basic services; the list below includes just some of the most basic. It is worth bearing in mind though that some sorts of business may not require every function.

  • Hiring & recruitment assistance
  • Firing and redundancy assistance
  • Pay support - holiday and sick leave management
  • Absence, welfare and disciplinary management
  • Contract & employment law advice

As mentioned, not all businesses will require every function here, and some will even require additional features. Whatever the case is, it is important to ensure that the HR company you work with can help you to fulfill all of your requirements.

Small Business Health & Safety

The safety of your employees is one of the essential HR concerns. You need to make sure that your staff are as safe and healthy as possible when they are working; this does not only include ensuring the quality of your own premises, but also means making sure that off-site staff are safe too.

The list below includes a list of health & safety considerations.

  • Are your employees properly trained to use all equipment they come into contact with?
  • Have you made sure that your employees’ work environment is as safe as possible?
  • Have you provided protective equipment where required?
  • Does your business have appropriate general safety equipment - CCTV cameras, fire alarms, burglar alarms, etc.

The list above does not cover all of the considerations for small businesses, but it is a good starting point if you are looking into HR. For even more detail, it is important to speak to an HR agency today.

Outsourcing Small Business HR

The information presented in this section should help to build an understanding of whether your small business requires HR, and also the extent of the HR needed.

In almost every case, it is likely that your business will need human resources managed, however whether the process is handled internally or externally will be a consideration.

As shown in the sections above though, even for larger business within the small business category, HR is often best when it is outsourced, in terms of both price and quality. Hiring an external HR agency to manage these processes is an excellent way to ensure that you are getting the best service possible, for the best value.

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Small Business HR Costs

There a range of HR costs that a small business might encounter; in this section we have collected together prices to help owners to understand what they might pay for outsourced services. Knowing these prices can often help when it comes to deciding between internal and external HR.

The prices in the table below have been calculated based on previous client costs; your own quote may be slightly different, but will generally be in the same sort of area.

For more information on the prices included here, visit our HR prices page today.

ServiceCostExtra Information
HR Audit£400-£500/dayAn HR audit allows an external expert to assess your human resource processes. The cost listed here is based on a day-rate; as a result, your own cost may be more or less, depending on the amount of time required - generally speaking, the smaller your business, the less you will pay.
HR Support£100-£200/monthHR support is, as the label suggest, simply an outsource service where your business can externalise certain processes. HR support is good for most business sizes, but can be particularly useful for small businesses without full-time internal HR.
HR Outsourcing£100-£300/monthHR outsourcing cost depends on a range of factors; from the size of your business to the size of your premises, a number of things will influence the quote you receive.

Although this table includes a range of price estimates, it is important to remember that it may not exactly match your own quotes. For an accurate price estimate today, simply complete the form at the top of this page.


Small Business HR Providers

Small businesses will often look specifically for HR providers that match their requirements; to this end, they will often look for HR agencies with a small business speciality. The table below includes just a few of these options and can help you to understand what you might expect.

Although this table includes a selection of companies, there are more that you might be able to choose from; to get access to the most suitable quotes, simply complete the form at the top of this page.

HR AgencyLocationRating
Citrus HRUK-wide★★★★★
William B. Rose LtdUK-wide★★★★★
Abbey Tax HRUK-wide★★★★★

Finding a supplier to suit your small business HR needs is essential; considering your options and understanding what you require is the best way to find the most appropriate plan possible. Start that research today and speak to as many suppliers as possible.


Compare HR Options For Small Business

The information on this page should give you some idea as to what HR option will be best for your small business; to find the most suitable HR company, you should speak to as many suppliers as possible - Approved Index can help here.

Complete the form at the top of this page to receive top-quality quotes from up to 4 top, UK HR companies.

Comparing quotes with Approved Index is free, quick and easy, and it could save your business as much as 40%.

Compare Small Business HR Services & Save Up To 40%.


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