For most small to medium businesses, Talent Spot knows that you are spending most time on non-revenue activity. From payroll and human resource management to benefits and compensation, managers and directors can spend a significant proportion of their day engaged in these necessary but time consuming tasks.
But when does it make sense for you to outsource? In assessing whether you should or not, there are several questions to consider before you make a decision.
How big is your company?
In my experience, businesses with fewer than 50 employees rarely have an HR team. Instead they may have a manager or finance director who dabbles in HR because they have some relevant experience in their dim and distant past which seemingly qualifies them to deal with all the people issues that arise. As a rule of thumb, organisations with more than 50 employees will often find it easier to have an in-house HR department and therefore, though they may still require outsourced HR support, the nature of that service may differ greatly from that utilised by the smaller business.
What services do you need?
The nature of the work undertaken by an outsourced HR consultant varies hugely dependent on the nature of the business and the talents of the employees within the organisation. With regard to my practice, I work for organisations with no HR department ensuring the business meets all necessary legal requirements in terms of policies and contracts. In addition, I deal with – or support the relevant people within the business who are dealing with – any employee relations issues as they arise including discrimination claims, redundancy, grievances and dismissals. I also provide regular newsletters on topical and relevant issues to ensure my clients remain current and up to date. I also work for businesses which do employ an HR team – I may be called in to support that team when issues arise that require legal advice.
How much does an outsourced service cost?
It is important to establish up front the way in which the outsourced service is billed. By and large, the cost of the service varies depending on the level of outsourcing that is required. For example, I may be asked to assist on a specific well-defined project in which case I will estimate the cost involved, or at least offer a range of costs within which it will fall. Alternatively, I may work alongside the business dealing with day-to-day issues on a retained basis, or, I may be called in to sort an "emergency" for which I charge an hourly rate.
What type of provider do you want?
Do you want a "face" who gets to know your business, staff and culture, who can be flexible in the service you offer and who, by virtue of being a phone call away, can operate as if you have your very own HR department? Alternatively, you may sign up to a HR support line – a less personal service but one that may suit the nature of your business and complement the expertise you already have within your organisation. The type of service I offer falls into the former example but it is "horses for courses" and the latter may be suitable where there is an experienced HR team who just need reassurance from time to time.
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