More and more companies are realising the importance of having proper HR in the workplace; This means the reduction of organisational risk, the mitigation of costly tribunal fees, and an increase in overall efficiency. All good stuff. Some of these companies opt to have an in-house HR representative, while others outsource – But what’s the difference? Today we’re going to talk about the top reasons of outsourcing your HR in the workplace.
Outsourcing HR In the Workplace Saves Money
In another blog, we discussed the pros and cons of outsourcing your Health and Safety in the workplace, and the general idea remains the same. With the primary reason to outsource being the cost.
The main focus for a lot of business owners is price. Will it reduce costs? Will it save me money? The answer to these questions is almost always yes. Outsourcing will almost always save you money.
Outsourcing with a company like Wurkplace costs a small fraction of the price of hiring a similarly qualified professional in-house. To illustrate this, know that the true cost of an employee is around 1.5 times that of their original salary. What’s the average salary of a single good HR manager? You’re looking at £50k. So, for just one HR manager you’ll be spending around £75,000 every year…
If you want an in-house team, triple that figure.
For a tiny fraction of that you can have an equally qualified and experienced outsourced team backing you up. Giving you the added benefits of no infrastructure or development costs…
But is Outsourcing Cost-Effective?
While it always lowers costs, its cost-effectiveness ultimately depends on the type of outsourcing company you choose to work with.
Larger and more prominent outsourcing companies who rely heavily on call-centres and scripted advice are giving the concept of outsourcing a bad name – providing no genuine corporate advice and no accountability. This is because the larger outsourcing companies also rely heavily on inexperienced members of staff. It’s the HR equivalent of ordering Fast Food – You get what you pay for.
If you’re a business owner who treats legal compliance as a box to be checked, and not a tool to improve your business, then this option will be fine for you. It’s cheap, it’s quick, but it’s ultimately ineffective.
If, however, you are a business owner who seeks every opportunity to improve and build – procuring a more dedicated outsourced team would be a better bet.
Smaller companies like Wurkplace offer a much more professional service, utilising highly qualified and experienced consultants who get to know your business. This means that the low price goes a long way, making it the much more cost-effective option.
Staying Up-To-Date and Competitive
HR is an ever-changing field. Why spend all your time trying to stay up to date on employment law changes, when you can hire a specialist?
Outsourcing companies specialise in taking that heavy HR burden away from business owners and allow them to focus on what they do best.
Don’t forget…It is in the best interest of every outsourcing company to be up to date and competitive with others, this means that you’ll be getting the best service for the best price, from a provider who is passionate and driven to provide the best service.
Niche HR Services
An added benefit of competitive outsourcing is that with this competition comes niche services.
Almost no two consultancies are the same. While this idea may be off-putting, you get the best services when those services are fitted to your needs. The bigger the outsourcing company, the more likely their service is to be broad, generalist, and ultimately ineffective. This is why smaller companies like ours do much better – We can take the time to engage with each individual client, and understand their company mission, vision, and values.
HR Expertise Guaranteed
Why spend all the time and resources on a recruitment process which might fail? Why wait for a decent applicant, when instead you could call up an outsourcing company and speak to an expert immediately?
A big reason companies choose to outsource is that it saves them time. When you work with a quality outsourcer, you are guaranteed to be speaking with an expert. As HR issues can be extremely time-consuming, it’s important to have that support. With Wurkplace, we cut out the middle-man – When you contact us, you speak to an HR expert immediately. No administrators, no apprentices, just quality advice.
HR experts can ensure that your business is legally compliant, has up to date policies and procedures, takes care of its staff, provides learning and development opportunities, timely payroll, and all sorts of other services.
Flexibility in Your HR
For modern businesses, flexibility and adaptability is key. With in-house HR, you are locked into an employment contract with someone who may not be what you were looking for, and who may get complacent over time.
Outsourced HR services gives you the freedom of using the service whenever you want. Companies like ours provide services virtually and on-site. This means that we can provide services across the UK, from our HQs in Chester and Manchester, to London, Birmingham, Liverpool, and the Wirral.
With outsourcing, you have a lot more control over what you get, how you get it, and when you get it. This means that you can decide whether you want an outsourced business for a big HR case, or whether you want one on a retainer-basis to know you’ve always got the support you need.
There are many Pros and few Cons to investing in a quality outsourced company for your HR in the workplace. Sourcing a company like Wurkplace on a retainer-basis will alleviate employee costs by a significant amount, eliminate procurement costs for HR entirely, and give you more flexibility with the service you are getting, allowing you to focus on what truly matters.
An experienced Director who controls and oversee all business operations, people and ventures. Responsible for the overall success of the business.
As a leader, he is able to steer a company to the most profitable direction while also implementing its vision, mission and long term goals. Additionally, he has strong crisis management skills to “save” companies in times of need.