One of the main services that we offer at organic hr is outsourced human resources. This could be to deal with anything from a one-off situation in the work place to a continuing helping hand with people management, however for firms that already have a dedicated HR function, or that have never needed either internal HR staff or help from outside, what are the benefits of outsourcing human resources?
In smaller companies or within departments at larger companies, dealing with colleagues HR issues can be both awkward and compromising. Sometimes, having dealt with an issue at an earlier stage procludes certain staff members intervening later on (for example if an HR officer is involved in an investigation of an incident, they’re automatically excluded from taking part in any later procedures).
This objectivity that external operators offer not only allows organisations to follow the rules effectively, but also gives them a view from outside which can be essential during more complex situations.
2. The Law
Although at smaller companies many HR problems can be dealt with ‘by ear’, there are legal implications and requirements attached to some processes and decisions that if dealt with wrongly could end up costing an organisation a significant amount of money. Outsourcing HR not only means that dedicated professionals are dealing with any issues that could potentially cause problems, but it also ensures that the relevant liability insurance is there should the worst happen.
3. Cost effectiveness
One thing we find with new clients that offer high-value services such as law firms or accountants, is that upper-management or even partners will be fulfilling some if not all of the HR tasks of the firm, particularly if the organisation has grown quickly.
Although it might seem like a good idea to have experienced and knowledgeable employees (i.e. the management or founders of the organisation) taking care of issues that very often have legal implications, it’s simply not cost effective. Consider our outsourced HR pricing structure and then compare how much a partner at a law firm might expect to earn per hour doing his or her ‘day job’ – this difference in cost is the amount the firm in question is effectively losing whilst their top employees are dealing with internal HR.
4. Skills and Experience
At firms where resources are tight, it’s easy to hand the human resources responsibilities over to someone who might not have a great deal of experience in it, and the idea of paying yet more money to an external company might seem to defeat the object, however when you consider both the legal implications of the bigger HR processes, and also the cost effectiveness, then making use of the skills and experience of a HR professional makes a lot more sense.