Benefits of Outsourcing HR – Part 2

In our second blog post we talk about the further benefits of HR outsourcing to larger and smaller companies. We share some of the ways in which support from an experienced, highly qualified HR consultant can drive business efficiency and increase your bottom line.

Why do you need to outsource HR either partially or fully?

Our first blog post discussed the ways in which fully or partially outsourcing HR can mitigate risk to your business by ensuring legal compliance and how to save you time and money in the process. 

Here we talk about further advantages that outsourcing HR fully (in place of an HR department) or partially (outsourcing a specific HR function such as pensions, payroll or legal services) can have for your business.

HR solutions with no full-time HR employee to manage

A fully qualified, full-time, internal HR manager is expensive to employ when you take into account salary, holiday entitlements, pension benefits and statutory sick pay and potential other benefit packages. They still need to be paid when business is quiet or corporate income is low.

If you have a training and development programme in place and any good HR expert would recommend you do, then maintaining your in-house HR professionals’ qualifications in order for them to fulfil their role is expensive. If they leave soon after qualifying, then the training process and recruitment cycle will start again, all adding costs to your bottom line.

Outsourcing HR has the benefit of flexibility so you can better manage your budget and the level of expertise you bring into the business.  


Link to ‘pay-as-you-go’ service page

Commercially astute advice with a focus on business outcomes

A dedicated HR consultant is a valuable strategic business partner to any business owner with a focus on business outcomes. They understand all areas and departments of your business so they can identify how HR can benefit each one. They are skilled at listening to ideas and problems and they can clearly articulate solutions.

If you want your business to grow, they look at people planning, recruitment planning, performance management, reward and recognition, retention, succession planning, upskilling through a learning and development plan, and organisation culture. They work hard to proactively drive your business forward. 

The coronavirus pandemic has meant that many businesses have had to re-prioritize their goals. Strategic HR consultants support businesses to change and adapt by analysing the skills of employees to see how these meet the new goals; they identify skills gaps and put systems in place to fill them.

Can you afford not to outsource HR? 

In Part 1 we talked about the legal consequences of lack of HR knowledge, but there are further reasons why it is important that a competent HR consultant supports your business.

High quality recruitment – People management

The process of recruiting new employees should be rigorous, fair and legally compliant. If somebody is not the right fit for your business, then the cost is huge. 

There are high financial costs involved in making somebody redundant and repeating the recruitment process. High employee turnover can affect the attitudes of existing staff, and disgruntled employees create a disharmonious working environments which can affect productivity, customer service and damage business reputation. 

Employee engagement

An HR consultant fosters good employee engagement which affects the revenue of your business. Employees who are motivated are more likely to remain with a business and work hard to drive its success. 

Remote working during the pandemic means that HR consultants need to find creative solutions to engaging employees and caring for their wellbeing.

How can HR Ready increase your business efficiency through outsourcing HR Services?

There are many reasons why businesses decide to partially or fully outsource HR on a short or long terms basis. At HR Ready we offer flexible solutions tailored to large and small businesses through our retained and pay-as-you-go HR services. 

Our expert HR consultants are dedicated to driving your business forward through strategic HR and HR activities that meets and exceeds your business goals. 

To discuss your outsourcing HR function for your business contact us on: 01223 641017

HR READY you value your people, we take care of them