Have you considered outsourcing your HR?
Human Resources, a core support mechanism that all employers should have. The HR department is one of the core cogs of a business and ensures they remain compliant with employment legislation along with aligning the people agenda and business goals. However, some employers particularly SME’s put their HR needs to the side and one of the main factors for doing so, can be down to cost.
The average cost in 2022 to employ a full-time, experienced HR Business Partner (5 years + experience)starts with a salary of £32,000.00 per annum upwards. The average HR business partner salary for the UK has a range of £32,000 to £53,000 with a midpoint of £44,500. (Robert Half) A substantial salary that a lot of SME’s can struggle to sustain long-term, especially compared to the cost of outsourcing HR support.
What is outsourced HR?
Outsourced HR is when businesses use a third-party to assist them with their HR function, many employers think outsourced HR companies only assist with employee relations issues i.e. poor performers, disciplinaries etc. However, an effective outsourced HR provider assists, coaches and supports SME’s throughout the entire employee life cycle including: ensuring legal compliance, reviewing induction and recruitment processes, implementing effective appraisal systems and contributing towards the overall employee experience.
What are the advantages of using an outsourced HR provider?
1. Cost effective – it’s a fraction of the price of hiring an internal HR Business Partner which means SME’s can sustain this cost longer term.
2. Expertise – most outsourced HR Consultants come with a wealth of experience from a variety of sectors and have the capabilities of working with different industries on a daily basis.
3. Knowledge – the ability to utilise knowledge from the wider company team with different backgrounds which can be drawn upon to provide best practice and commercial advice to clients. Along with having the resources to access wider, industry knowledge due to working with various businesses/sectors, which is a big benefit to clients.
4. An outsider opinion – internal HR may sometimes be entrenched in a particular cultural mindset, having an outsider perspective can provide a more objective view on employee relations issues, decisions being made and the general way of working.
What does outsourced HR support cost in 2022?
Our packages start from as little as £99 (+VAT) per month to get a business legally compliant but our most cost effective and popular package is our Corporate Package which provides a business with their very own dedicated, experienced HR Consultant to work with, who gets to know the business and the people on a personal level with regular onsite visits. Along with bespoke letters, formwork, policies and procedures and complete input on the overall employee lifecycle. Our Corporate Package starts from £250.00 (+VAT) per month, that equates to £3000 (+VAT per annum), on average that’s a tenth of the cost of employing an internal HR Business Partner!
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