One of our key specialisms is being able to look at a workforce structure/processes and instantly identify easy quick wins on workforce efficiency and planning to enable your business to run smoothly and become more cost effective.
As there are so many different branches in HR, some companies may find it a lot easier to reach out to specialist companies, rather than employing somebody in-house. Outsourcing can reduce costs by shifting certain business functions to a third party for a significant period of time.
The benefits of outsourcing for your business
There are many advantages of outsourcing. Skills and knowledge are one of those. Hiring someone from a specialist company will ensure they have been fully trained in that one specific field and will have extensive excellent knowledge. You may find that someone in-house may not know something as in depth as a specialist or be as informative and up to date. Increased legislative compliance is another issue. Specialist companies, such as payroll or pensions, will have more of an understanding of the legislation that surrounds that subject, ensuring legal compliance in an ever-changing world.
Outsourcing – A cost effective solution
Companies can focus on their core business process rather than human resources when they outsource their HR.
Reduced costs is an overall advantage when hiring an HR adviser through an outsourced solution in comparison to hiring a substantive employee – especially if you are an SME who cannot really afford the substantive costs of a qualified HR professional, or a company that needs specialist knowledge for a bespoke project or initiative.
The average cost of a HR Manager who can deal with a range of generalist HR issues safely with the right level of experience, is between £35-£42k. A HR Adviser may have less exposure but able to deal with basic HR administration in the region of £25-£30k. By outsourcing, this provides companies with a cost-effective way of ensuring they tap into the right experience and advice as and when they need it, whilst ensuring the service is affordable.
HR Projects and Consultancy
Specialist projects and initiatives sometime require key experts within a niche field and employing someone that is right for the project with the correct experience and know-how may prove difficult and expensive. Outsourcing the work to a consultancy will provide you with the specialist knowledge that you need that can often be analysed, developed, presented and implemented within a limited timeframe, where costs can be managed and controlled. You can save time on finding the right person; using a credible consultancy will mitigate against poor outcomes and results.
The downside of not using HR at all
The cost of poor people management can be substantial and if a company fails to comply with the law, they could be faced with a hefty claim at an employment tribunal and a large bill for the legal costs.
As previously mentioned, a specialist will have more of an understanding of the law in their field, and will know it inside out, which would mean the chance of a tribunal for a situation is less likely.
For more details on how Centric HR can help your business grow with HR Outsourcing please…
"As a Company owner you can focus on your core business process rather than human resources by outsourcing to Centric HR."
The cost of Employment Tribunals – an example from 2018/2019
Employment Tribunals Outcome
2018/2019 - 121,111 Cases
Heard by tribunal
Successfully won by employee
Successfully defended by employer
Unfair dismissal claims
Statutory cap (not for discrimination cases)
Increase in tribunal applications since year before
Supporting you to consider the strategy of any HR outsourcing and what you hope to achieve by doing it.
Be a trusted and independent advisor to your business.
Carry out a full review of HR services and assess best options for business, retaining in house vs outsourcing.
Full due diligence including financial review of services to understand cost implications.
Support or carry out research on supplier services in the market and present findings and provide impartial advice with tendering processes and procurement and contract set up.
Project manage any outsourcing including governance and auditable processes.
Work with business departments to understand and manage the TUPE implications of any outsourcing.
Supporting organisations to maintain business as usual activities whilst outsourcing takes place, allowing companies to concentrate on what matters.
Advising on current contract management with outsourced service providers.
Help your grow your business with a pro-active approach to all HR matters.