Benefits of outsourcing your HR

Updated: Oct 19, 2021

When you are growing fast, it is important to get the right foundations to support your trajectory. When you start mapping all the things that need to be in place, it can seem overwhelming as the large list of responsibilities and tasks generally falls on few shoulders.



Running a business is expensive, and while some of the costs are unavoidable, many businesses don’t have the financial resources to invest in a HR team. For many scale-ups this means that the infrastructure that will support you in the future often takes a back seat to the more time critical everyday tasks. Fixing this down the track is both expensive and slow moving. To overcome this, businesses outsource their HR.


Engaging an expert saves money, time and can give you peace of mind that key regulatory requirements and obligations will be met. It also means that some the fundamental people pieces can be set up from the beginning and provide a foundation for continued growth.


Here are the top 4 reasons you should consider outsourcing your HR function:

  1. Leverage expertise: Scale-up teams are anchored with experts. As a CEO or founder you have curated a team around you, usually of the best in their field. Outsourcing your HR function is doing the same thing. Getting the experts around you to get moving and ensure the people foundations are right.

  2. Focused Support: While being in the business means you are pulled from priority to priority, your external provider will have a focused approach and deliver projects without the internal noise that can slow progress.

  3. Faster Delivery: A process, policy or document design that may take you a day to source, review and contemplate, will be significantly less for an expert. They have navigated this before and have the resources, knowledge, and experience, meaning you will get a quicker turnaround time to delivery.

  4. Save money: Avoid mistakes and reduce the need for financial resources to be spent on headcount when they could be allocated into growing other areas.


Important consideration:

Our approach is a little different to traditional outsourcing, and it’s something to be mindful of and consider when you are talking to potential providers.


We are passionate about sustainable change and setting businesses up to have HR functions that are successful independent to us. Everything we build is handed over to the business and left within the business for future use.


We set up the foundations so that when you are ready to grow and bring HR inhouse, your team can get on with hr-ing and won’t be starting from scratch.


Services that are often outsourced:

Different organisations have different needs so the support requirements can look different across each organisation and industry.


Here are the top 8 pieces that outsourcing can support with:

  1. Co-sourcing recruitment

  2. Building recruitment processes

  3. Building onboarding processes

  4. Developing key HR policies and procedures

  5. Review and building job descriptions

  6. Understand legislative requirements relevant to your organisation/people

  7. Adhoc phone based or face to face support

  8. Performance review support

Conclusion:

Running a business is expensive and many businesses don’t have the financial resources to invest in a HR team. In today’s competitive market, it takes every ounce of energy to take your company from idea to profit, so anything that can be outsourced should be. External HR teams have become an attractive option as more entrepreneurs are looking for support with their employee needs, allowing them to focus on strategy, growth, and delivery.


References

https://leadhrm.com/why-should-a-startup-outsource-their-hr-services/

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