The specific tasks and responsibilities outsourced to HR providers will vary from organisation to organisation. When considering appointing an outsourced HR provider, a helpful starting point is often appraising the tasks which are being done across the business which relate to employment, but where extra capacity or specialist knowledge is needed to do them more effectively or efficiently.
Many companies choose to outsource routine employment administration such as drafting and issuing contractual documentation to new starters or handling the offboarding process. Administratively, there are also opportunities to handle the transactional tasks which come along with recruitment, training, managing benefits and some areas of compliance.
Support from an outsourced HR partner to manage the onboarding process, particularly where this is done remotely, can give the business peace of mind that everything is taken care of so the induction journey can focus on settling the new member of staff into the business, rather than relying on administration.
Outsourced HR specialists also play a pivotal role in supporting their clients to handle operational matters and deal with employee relations. In particular, the support from an HR practitioner can be invaluable when faced with employee complaints and grievances, or if there are concerns about an individual’s conduct or behaviour. HR practitioners are there to support the business to navigate these processes in line with the law, and best practices, in a way which reflects the business and its operating environment. In challenging times for businesses, such as individual or collective redundancy situations, an outsourced HR partner plays a key role in supporting the business to develop its approach and appropriately consult with staff.
If you are looking outside your business for HR support, advice and consultancy, searching for an HR specialist who can partner with you on a wide range of services is advised. Beyond taking care of the transactional tasks to save you time, and operational matters to ensure they are handled effectively, people specialists can also take a longer-term view and work proactively with your business. Sharing your business plans, goals and aspirations with your outsourced HR partner will enable them to develop and design an HR strategy and approach which is aligned with your business plan.
Why would I outsource rather than hiring internally?
At Jackson Hogg HR Partnership, we work with many SMEs who simply don’t need the support of a full-time HR specialist. However, they do need regular support and confidence that their HR systems, documents and procedures are in line with their legal obligations as an employer. There is no exact ratio of HR to non-HR staff which suits all businesses, and it can range from as low as 1 HR representative to 40 members of staff. During times when a lot is going on in the business such as mergers and acquisitions, growth or scaling, there are greater possibilities to increase levels of support quickly and on a short-term basis versus hiring into the business.