What does outsourced HR mean and how does it work?

Answering all of your questions: What does outsourcing mean for HR? How does outsourced HR work? What factors affect the decision to outsource HR? Why do companies outsource HR? And many more…

What is outsourcing?

Outsourcing – the act of obtaining a product or service from an area outside of your expertise. HR Outsourcing – The sensible thing to do.

Outsourcing in HR means sharing the responsibility of the workplace with a professional who can support and advise with the knowledge of procedures and with the intention of protection. Just as you outsource the care of your teeth to your dentist, you should outsource the protection of your people to HR. But how does this work in reality? It’s simple. Buying one of our packages is buying a level of our time, which can be invested however you need. Whether that’s in policies, recruitment, disciplinaries, or anything people related. We’ve got you covered, literally.

Why do companies outsource HR?

Simply because it’s important and essential. If you don’t have space for an in-house HR specialist, but are struggling with people issues, outsourcing is a simple, effective, and affordable solution. It is often a better option for companies that can’t pay a full salary for an extra member of the team, while still getting expert advice whenever needed.

We can manage risk proactively, while also responding to issues appropriately as they arise. Many workplaces do not have the correct procedures implemented, or know how to communicate them clearly. Miscommunication is the most effective way to destroy a workplace, and is the root cause of most issues.

A enormous benefit of outsourcing HR is the disconnection between the service and your people. As an outside service, we don’t have friendships to maintain. We can handle disputes between friends from a fair and balanced perspective.

How does outsourced HR reduce costs?

We all know that time is money. A HR task such as contracts, references, written warnings (and all the rest) will take hours out of your day, losing precious time that you could be investing into your business. Tasks such as this take us minutes. We have all of the templates ready to go at our fingertips. Using us saves your valuable time, so you can spend it growing your business.

We are also able to advise on decision making, helping you to make better decisions that will last longer and impact your business further down the line. We are an investment in people, your people. Investing in this way is a much more cost effective strategy. It is far more expensive to re-employ every few months, than to invest in the people you already have.

The big question – Cost

How much should good outsourced HR cost? The big companies will charge somewhere along the lines of £30 per month per employee (when you have 4/5 employees). A flat rate like this might feel like the safe option, packaged up nicely, but they will take no active interest in your business. They are all talk, no follow up. As soon as the contract is signed you’ll find it near impossible to get out of, while not receiving the level of support you were promised. We charge at a rate for time, not people. Our packages start at £220 +VAT. For this, you get a full, personalised support service. With a specialist just 1 phone call away. Have a look at what our customers say about us here.