Running a small business is no small feat. You’re not just the owner—you’re the marketing manager, accountant, and, all too often, the HR department. Wearing so many hats can be exhausting, and it often means that crucial HR tasks don’t get the attention they deserve.
That’s where HR outsourcing comes in. Beyond simply delegating tasks, small business HR outsourcing allows you to strategically reallocate your resources. Imagine boosting productivity, reducing costs, and leveraging the expertise of seasoned HR professionals—all without adding to your payroll.
Are you ready to hear about all the benefits that come with outsourcing small business HR?
Let’s get started.
What is outsourcing small business HR?
Outsourcing small business HR refers to the practice of hiring an external provider to handle various human resource functions that a company may not have the resources or expertise to manage internally.
This can include tasks such as recruitment, payroll processing, employee benefits administration, compliance with labour laws, and training development.
By outsourcing these functions, small businesses can focus on their core operations while benefitting from professional HR support.
The importance of getting HR right for your small business
Getting small business HR right is important for many reasons:
- Improves productivity and morale.
- Frees up time from line managers dealing with employee issues.
- Mitigates the risk of costly Employment Tribunal sanctions.
Let’s take a closer look at its impact on:
Compliance
Although it can be time-consuming and often feels like a distraction from activities that generate income or boost productivity, staying compliant is non-negotiable.
Legislation is constantly changing, and it’s vital to not only be aware of these updates but also to understand how they apply to your specific workplace. Ensuring that all your policies, procedures, and documentation are current with the latest legal requirements helps you avoid costly penalties and fosters a secure, lawful working environment.
This meticulous attention to compliance ultimately safeguards your business and supports its growth.
Hiring and recruitment
If you’re not hiring regularly, it’s easy to fall behind on current trends and best practices. Recent changes to legislation now provide enhanced day one employment rights, making it more important than ever to get your recruitment process spot on.
Hiring the wrong person can be costly and damaging to both morale and your business’s reputation. An outsourced HR team can offer expert advice on the best methods for interviewing candidates, such as whether to use an assessment centre or an assessment-based interview process.
Additionally, having a robust and compliant contract of employment is vital; it serves as a key defence document if things go awry with an employee. A non-compliant contract could mean losing an employment tribunal case, which can be a significant setback for any small business.
Employee onboarding
By using an outsourced HR service that manages a Human Resource Information System (HRIS), you can easily show that you’ve complied with right to work requirements. This service also helps effectively induct employees, manage their probation periods, and provide them with the necessary training and policies.
This support helps new hires settle into their roles, ultimately contributing to a more productive and compliant workforce.
Reporting and analytics
Imagine trying to make informed decisions or allocate resources without reliable employee data—it’s like navigating without a map. Robust HR data allows you to demonstrate commitment to diversity, inclusion, and pay equity, which are vital for both compliance and building a positive workplace culture.
Accurate reports enable you to identify trends, address issues proactively, and optimise your workforce strategy, ultimately driving growth and success.
Get the latest HR updates, straight to your inbox
Get the latest HR insights and best practice guides, direct to your inbox.
Why you should outsource small business HR
Often, small businesses struggle to give HR the focus it needs, with the role usually being added onto someone else’s responsibilities. This can lead to critical compliance issues being overlooked.
By outsourcing, you gain access to an entire team of HR professionals who are always on hand to help and advise.
Financially, outsourcing is extremely cost-effective; for a business with 10 employees, it costs less than 10% of the salary needed for an in-house advisor and administrator.
The key benefits of outsourcing small business HR
With access to an outsourced HR team, you gain the expertise of professionals who are regularly exposed to a broad spectrum of HR issues. This allows them to provide customised solutions and stay updated with best practices and legislative changes.
Unlike in-house HR staff, outsourced teams ensure there is no downtime, and their unbiased approach guarantees objectivity and consistency in dealing with employee matters.
Ultimately, outsourcing HR ensures that your business can focus on growth and operations while maintaining a compliant and efficient HR function.
Your checklist when outsourcing small business HR
Here are some key questions to ask when choosing an HR outsourcing provider:
- Do they have a track record of providing this type of service?
- What levels of expertise do they have in their team?
- Do they have dedicated points of contact?
- Can you readily call them up and get advice when you need it? How accessible are they and what’s their response time like?
- Are they pro-active in providing advice and information?
Let Cintra streamline your small business HR
Cintra HR services is the perfect solution for small business HR because:
- Our expert HR team has extensive experience across every industry and business size.
- We deliver precise, top-quality advice and documentation you can trust.
- As part of your team, we prioritise your needs, crafting tailored, business-friendly solutions every time.
- With unparalleled experience in every aspect of HR, there’s no challenge we haven’t faced.
- Offering a complete service—from payroll and HR administration to employment relations advice and a cutting-edge HRIS—we’ve got all your HR needs covered.
If you want to learn more about payroll and HR services for small businesses, book a personalised demo today.
Find out more about Cintra's HR services covering HR admin and onboarding, ER issues, HR policies and handbooks, compliance and much more.
