Did you know that there is the option to outsource your human resources or HR department?
Most people who have worked for medium to large corporations may associate the HR team with a large room full of computers and files. Still, for many people who are not in the category of medium to large-scale business owners, that simply is not an option.
This can leave said people in an interesting position. Either they go on with their business with no HR department. and risk legal issues, or they can outsource their HR team. The latter is preferable, and, for many business owners, it is cheaper and more efficient, as you don’t have to worry about having access to a large room with computers!
Here, you will be walked through the people who may benefit from outsourcing their HR, and the reasons why will also be explored. Enjoy!
Start-Ups
Starting with one of the most common business types in Europe, many start-up businesses can benefit from outsourcing their HR departments.
The reasons are simple. The outsourcing of an HR department to an accomplished company like the HR Dept can save on costs, which are often low for start-ups. Also, those who are the founders or owners of a start-up business can be overworked and may not have the expertise needed to oversee the HR department and everything else that is going on. So, it also saves time, reduces stress and gives start-up businesses access to expertise.
Small Business Owners
For clarity, in this sense, a small business is one that has five to one hundred employees. However, these tend to be a bit more established than start-ups. Therefore, by placing the HR responsibilities like payroll, onboarding and holiday pay to an external HR team, the small business owner will be able to save time on admin tasks.
For small business owners with larger teams of staff, there is also better legal protection if they choose to work with an outsourced HR team. Larger staff teams will require more oversight, which can be impossible for one person to oversee on their own. Choosing a HR team to manage the complex area of employment law and regulations can prevent legal action further down the line and ensure that the business is up to standard. Of course, a small business owner who is overseeing a café is going to have different requirements than a business which is selling plants, so it is best to seek out an HR team that is specialised in your area, if possible.
Freelancers
It goes without saying that the employment world is not kind to freelancers! There are issues with contracts, late or non-existent payments from clients for work that has been completed, as well as potential issues with legal frameworks and codes of conduct, which are more common for those practising as therapists or dog walkers.
So, it makes sense that freelancers would benefit from the help of an external HR team. An HR team can draw up contracts for freelancers that are legally binding, as well as manage payments and ensure legal protections. HR teams can also help with tax law and, if necessary, help to draw up documents to protect the intellectual property of the freelancer.
Not For Profit Businesses
When many people think of not-for-profit businesses, they assume this applies only to charities. However, there are many businesses that use this ethos, such as fostering teams.
Much like start-ups, most not-for-profit businesses cannot afford full-time HR staff, so hiring an external HR team can reduce costs but also give the business access to the expertise that they need without costing a lot of money. Also, many external HR teams will offer project-based payment options, so if a not-for-profit business owner only requires an HR team to draw up contracts, then that is all they will pay for.
Companies That Are Scaling
Do you have a company that is scaling? Congratulations!
How can you benefit from an outsourced HR team during this time? Well, you can speed up the hiring process, as an external HR team can create successful job adverts, oversee candidates, as well as screening and the recruitment process. Of course, the company will have to communicate requirements, but by outsourcing this task, the current team does not have any more responsibilities, and the payoff is more staff accumulated in a shorter time scale, helping to meet deadlines and assist with the business expansion. If this sounds good, try and look for an HR team that has experience with helping businesses grow, as they may even have more to offer you!
