“What are the benefits of outsourced HR for SMEs?” We are often asked this question by our clients and the simple answer is – it depends.
One of the best ways to check if you have the HR support you need is run a ‘health check’ or HR audit to see how fit you are to meet the needs of your organisation as defined by your own goals. This will quickly tell you what help, if any, you need to move you forward.
Not all organisations need or want such a capable HR resource on a full-time or permanent basis but might benefit from temporary support or an ‘as required’ service that they can call on.
SMEs who use an outsourced HR leader will get the following benefits:
- commercial awareness and strategic competence. An HR leader will understand the market, the company strategy, the HR implications of that strategy and where the profit comes from
- a discrete, confidant relationship with the managing director and someone who can act as the conscience of the business. This can involve helping them to see issues as others see them and being willing to comment in a constructive and assertive way if the need arises
- an effective and natural coach and mentor, able to support all employees to improve their personal effectiveness from the board to managers and all employees.
- a proactive, dynamic, agent of change, providing an innovative contribution within the leadership team and their own department. Effective HR is not a ‘farming job’ where you are concerned primarily with process and status quo.
An outsourced HR director or manager will understand:
- the most cost effective, appropriate methods of recruitment and selection.
- how to develop talent and deliver training in an efficient way that produces real tangible results.
- legislation, legal requirements, planned changes to the law, what policies and procedures a company needs, contractual issues, how to handle conflict or disputes within the company.
- how to develop and manage effective benefit, bonus, and commission payroll programmes.
- what HR information a business needs and how to measure the efficiency of employees
- How best to communicate across the business as it grows.
Connor offers flexible HR support – get in touch with us today to let us know what’s going on in your world.