Convincing a small to medium business (SME) to spend money is never easy! More often than not they will look for every way possible to do it on their own until they can no longer physically get it done. Ironically tho, SME often reap the greatest value from outsourcing expertise that is not core to their business.
Whilst I have a good handle on numbers and my P&L, the first thing I did when I started my business was bring an accountant onto my team to manage the BAS, IAS and other financial compliance and planning. An accountant is often an easy outsourced solution for an SME, however very few look wider to outsource matters affecting the largest single cost to their business – personnel.
Savvy SME’s have looked to external expertise such as business consultants, outsourced HR or even advisory boards to provide the edge and cover any blind spots.
At the other end of the spectrum mid size businesses can get rid of their internal HR team altogether and outsourced HR. This solution not only has significant cost savings, but also puts the accountability to add value squarely at the outsourced provider and line managers, removing the “crutch” HR can sometimes become (For a recent article on an accounting firm getting rid of their HR team click here).
Businesses that don’t have either an HR role or a current HR solution tend to find that someone else has HR as their ‘part time job’. Is that you? Do you manage your people on the run? Are you sure you are meeting all your HR compliance requirements?
Looking to outsource your HR needs is a big step. The most common benefits to outsourcing HR that also support the bottom line are:
- Risk management – Employment laws change regularly, and it can be difficult to remain up-to-date on regulations that affect the workplace – let us keep you updated with changes that affect you and protect you from a lack of compliance.
- Cost savings – Outsourcing helps reduce the cost of maintaining a fully functional HR team including the office space and training costs. In addition, managing people incorrectly can be costly, and can lead to expensive legal and WorkCover issues – our advice can save you thousands alone in avoiding these costs!
- Efficiency – Businesses without an HR function often find it is someone else’s part time job – by outsourcing your HR to the experts it allows you to spend less time on paperwork and HR administration and more time in the business or focusing on what you are good at!
- Talent management – Outsourcing HR functions helps businesses better manage employee performance and development. Advising on employee performance and maximising a performance management framework helps grow and retain talent and exit safely underperforming people.
- External expertise – Having a different perspective or an expert to call and discuss your people matters is invaluable, especially when problems arise. We all have blind spots, having an HR expert on your team may challenge you, and that’s a good thing!
Want to know more? Contact us to arrange a free HR audit to assess your current HR practices and the solutions required to improve business performance.