Do I Really Need to Outsource HR?
When should a small business outsource HR – and when can you manage perfectly well without it?
If you run a small business, you probably didn't start it because you were excited about employment contracts, absence meetings, disciplinary procedures or keeping HR policies up to date.
You started it because you're good at what you do.
But as a business grows and you start employing people, managing those people can take up an increasing amount of your time. And sooner or later, many business owners find themselves wondering:
“Do I actually need HR support?”
The answer isn't always yes.
If you're looking for outsourced HR Dorset businesses can rely on, the important thing is finding support that fits the size and needs of your business.
In fact, I don't believe every small business needs an HR department or even ongoing HR support. Sometimes you simply need an experienced person to turn to when something crops up.
That's where outsourced HR can be particularly useful.
What does outsourcing HR actually mean?
Outsourcing HR doesn't mean handing control of your employees to somebody else.
And it certainly doesn't mean you need someone sitting in your office five days a week.
It simply means having access to professional HR advice and support when you need it, without employing your own HR manager.
For one business, that might mean getting employment contracts and policies in order.
For another, it could mean help managing a difficult employee situation.
And for another, it might mean having ongoing HR support available each month so there's someone to call when a people issue arises.
Good outsourced HR should fit around your business – not the other way around.
So, when might you need HR support?
There isn't a magic number of employees at which a business suddenly needs an HR consultant.
However, there are some common signs that it may be time to get some help.
You might find that:
you're employing more people and aren't sure whether your HR paperwork is up to date;
you're spending too much time dealing with employee issues;
a disciplinary, grievance or absence problem has arisen and you're unsure what to do next;
managers are dealing with people issues inconsistently;
you've downloaded contracts or policies from the internet but aren't confident they're right for your business;
employment law changes are becoming difficult to keep track of; or
you simply want the reassurance of knowing there's an experienced HR professional you can call before making an important decision.
Often businesses contact me before there's a problem, which is ideal.
But plenty contact me when something has already happened.
That's perfectly normal too.
“We're only a small business. Do we really need all this?”
Small businesses don't necessarily need complicated HR systems.
What they do need are sensible foundations.
That normally means appropriate employment contracts, clear policies, good record keeping and managers who know how to deal with common employee situations fairly and consistently.
It doesn't have to become a mountain of paperwork.
In fact, one of the things I feel strongly about is keeping HR proportionate to the business.
There's little point giving a business with 10 employees an HR system designed for an organisation employing 10,000 people.
The aim should be to make managing people easier, not more complicated.
Can I just call an HR consultant when something goes wrong?
Absolutely.
For some businesses, that's all they need.
You may be perfectly comfortable handling your day-to-day people management but want professional HR advice occasionally.
Perhaps an employee has raised a grievance.
Maybe you're concerned about someone's attendance or performance.
Perhaps you're considering a disciplinary process and want to make sure you're approaching it correctly.
Or you might simply want someone to sense-check what you're proposing before you act.
That can be far more cost-effective for a small business than employing an HR professional.
What about ongoing outsourced HR support in Dorset?
As a business grows, there can come a point where HR questions become more frequent.
That's when ongoing support can make sense.
Instead of searching online every time something happens – or lying awake wondering whether you've handled something correctly – you have somebody who already knows your business and can provide practical advice.
For me, continuity is important.
I don't believe small-business owners should have to explain their business from scratch to a different adviser every time they call.
That's why I deliberately work with a limited number of businesses. My clients deal directly with me, so I can get to know the business, its managers and the way it operates.
Is outsourced HR expensive?
It doesn't have to be.
One of the advantages of outsourcing HR is that you can choose the level of support appropriate for your business.
You might need a one-off HR project, such as reviewing your contracts, policies and documentation.
You might want support with one particular employee situation.
Or you may prefer a small number of retained HR hours each month so advice is there when you need it.
You're therefore paying for the HR expertise you actually need rather than the cost of employing an in-house HR professional.
When don't you need outsourced HR?
If your HR documentation is appropriate and up to date, your managers are confident dealing with people issues and you're comfortable keeping on top of your responsibilities as an employer, you may not need ongoing HR support at all.
You might simply benefit from an occasional HR review or some advice when an unusual situation arises.
I would much rather tell a business owner “You're in good shape – you don't need me every month” than sell them support they don't need.
HR doesn't have to be complicated
After more than 35 years working in HR, one thing I've learned is that most business owners aren't looking for pages of HR jargon.
They usually want straightforward answers to straightforward questions:
What do I need to do?
What are my options?
What's the sensible way forward?
That's the approach I take at Howe HR Dorset.
I'm a CIPD-qualified HR Consultant based in Dorset, providing practical, personal HR support to small and growing businesses across Dorset and throughout the UK.
There are no call centres and no account managers. If you work with Howe HR Dorset, you deal directly with me.
And whether you need ongoing outsourced HR support or simply an experienced HR professional to help with one particular issue, the starting point can just be a conversation.
Not sure whether you actually need HR support?
I'm happy to have an initial, no-obligation chat about your business and what's happening.
If I think you need HR support, I'll explain where I think I can help.
And if you don't need it, I'll tell you that too.
Pam Howe
Howe HR Dorset
Straightforward HR support when you need it.
Free 30-minute initial HR chat
07586 664429
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