Outsourcing HR projects to consultancies when needed is growing in popularity as a practical method of keeping staff costs down and ensuring that HR problems are managed by the experts.
Costs and savings
HR can be a complex function and is something of a minefield due to the frequent changes in employment law and compliance requirements. Because of this the discipline of human resources is today one of the most outsourced office functions.
Businesses that outsource their HR support typically list the same three key reasons for doing so:
- Access to skills and knowledge
- Better quality HR support than is available in-house
- Cost savings.
HR and compliance
Outsourcing a business’s HR needs to a specialist HR consultancy has benefits for both large and small organisations. For an SME, a dedicated HR department is often a luxury the firm cannot afford, but the business must still comply with employment regulations or face the legal consequences. Therefore, it makes sense to bring in a specialist consultancy equipped with the skills and knowledge to ensure the business is complying with requirements, best practice or to carry out specific tasks such as recruitment as and when needed.
Recruitment and payroll
Recruitment, payroll, or any ad-hoc personnel-related tasks are also commonly outsourced to HR consultancies. Companies may choose to outsource the whole of their HR needs or cherry pick areas where they struggle, such as recruiting specialist staff. When planning redundancies, for example, it’s vital that a company operates within what can be a fairly complex legal process.
In addition, crisis management such as preparing a defence for an employment tribunal is an area where bringing in specialist outsourced HR consultancies can play an important role.