What is outsourced HR for SMEs?
We provide HR for small businesses that cannot justify the need for permanent or full time in-house HR.
It’s all about the experience
Outsourced HR is a cost-effective way of engaging HR expertise.
HR theory can be learned relatively quickly from books and workshops, but it needs to go hand in hand with experience to add value to organisations. People are of course individuals, so it is likely to be unfair to have one fixed process to deal with HR matters – because there are so many variables with people. This is why we use the terms ‘it depends on the circumstances’ or ‘acting reasonably’. Experience brings knowledge of how a range of similar issues have turned out in different circumstances and using that knowledge in line with good practice and employment law enables us to make reasonable decisions for the circumstances.
HR issues are also (hopefully) not something that happen every day in one small organisation, so it takes time and varied experience to build that broad perspective.
Training an employee to undertake a dedicated HR role could mean under-utilisation of that person and the need for constant re-training in the absence of frequent practical experience.
What does outsourced HR do?
We have established that the SME owner and their line managers are unlikely to have end-to-end HR expertise and ‘you don’t know what you don’t know’. It is however important to have some knowledge – to be able to recognise employment issues that could well escalate, to be competent and confident to manage issues before they escalate and to know when to ask for help.
In practical terms this can include:
- Training managers on the implications of employing people – the risk of key people leaving, lost productivity through demotivation and ultimately employment tribunal claims
- Providing clear HR policies and procedures to enable all parties to know what is expected of them and training managers on how to use them
- Work with the employer to consider what makes employees tick in all aspects of employment (employee engagement) and put a range of initiatives in place to achieve optimum staff performance
- Providing advice and guidance on managing employment issues as they arise (eg employee misconduct, capability issues, absence management, maternity leave etc)
- Creating contracts of employment, HR policies/employee handbooks, and keeping them up to date as the law and best practice evolves (eg updates for zero hours contracts, e-cigarettes, legal highs and holiday pay)
- Support with recruitment and selection process to ensure they are fair and deliver the right person for the job
- Reviews of organisational structure to ensure it supports delivery of the business plan with restructures and any redundancies managed fairly and within the law
These services can be provided by us on a pay as you go basis or via our unlimited advice value packages.
Our service is always provided with your business in mind. We take a commercial, balance of risk approach to find a practical solution that works for you. If you would like to find out more about outsourcing your HR, please get in touch.