4 Signs you need to Outsource/Insource your HR Function

HR function

Many people underestimate the importance of an efficient HR function. If you don’t have sufficient HR services, your business could be missing out on the opportunity to cut spending and halting the development of the company. If you feel like your business experienced rapid growth before you had nailed down an effective HR strategy, then it’s time to sort out the often underrated department. HR outsourcing can save you from wasted spend, employee unhappiness and loss of time.

If you don’t have enough manpower in the business HR department or you feel like it could be improved, then there is always the option to outsource your HR needs. This doesn’t always mean taking the workload offsite to a HR services company; you could hire an experienced interim who could teach your staff the best practices. If you spot any of the following warning signs then you should take action sooner rather than later…

Outsourcing your HR Function is quickly becoming a popular business tool for SMEs up and down the country.  In 2009, the Chartered Institute for Professional Development claimed that outsourcing activity was on the rise.  In 2013, the Global HR Service Delivery Survey conducted by Towers Watson found that 17% of companies plan to increase their outsourcing levels in the next year.

1. Your recruitment spend seems high

Yes you need to invest in recruitment to attract the right talent, but did you know many companies spend far too much in this area? Take control by hiring a recruitment interim who can cut down your recruitment budget. They sit in your team, work for you, but are paid by someone else – and can tap into valuable tools and networks across the whole of the UK. This has delivered hundreds of thousands of pounds for companies which had been wasted on the recruitment process.

2. Your staff are disengaged

Has your workforce become less productive recently? If you’re wondering what the problem is, it lies in your HR services. Disengagement can cost businesses dearly, so you’ll want to keep on top of this problem. The first rule of engagement tools is they have to be deployed independently – you cannot get the same answers running it in house – for a few days a year use an expert whose aim is to reduce the cost of disengagement and create a happy, engaged workforce.

3. You need to offer some training and development

A business that doesn’t show an interest in its employees’ development won’t be able to retain the most ambitious workers. Staff need visible career paths and access to as much training as possible, so how can you provide this? You don’t need an L&D person in house unless you are a huge company, so tailor specific programs to fit your needs and have a professional come in and deliver it.

4. You’re struggling to keep up with regulations

One of the biggest challenges small businesses face is staying compliant. Many companies simply don’t have the in-house expertise to manage compliance, which could result in large fines. If you’re starting to worry about the endless changing laws and regulations in regards to running your business, then it may be time to outsource your HR operations.

Need HR advice? Talk to us about your HR Function.