Benefits of outsourcing HR

When it comes to human resources (HR), an organisation can either have its own internal department or outsource. The latter is becoming an increasingly popular choice, because it provides a number of benefits. In this blog, we will outline precisely what the benefits of using outsourced HR services in Bedfordshire are.

Financial and operational Benefits

Cost savings

If you employ your own in-house HR team, you will have to pay each member of it a full-time salary. They will also be eligible for any employee benefits that your organisation offers. Then there is the cost of training them for the job. By outsourcing HR, you outsource all of that expense too.

Increased efficiency

Outsourcing HR allows you to streamline all of its various processes – including the likes of recruitment and onboarding, and payroll and benefits administration. That will let your organisation become leaner and more efficient.

Scalability and flexibility

Most HR consultancies offer a range of services based on the needs of the organisation. This means you can choose a package that suits you and just pay for the services you actually require. This flexible scaling is guaranteed to save your organisation money both in the short and the longer term.

Expertise and Compliance Benefits

Access to specialised knowledge

All of the people employed by a third-party HR consultancy will be experts in various aspects of the job. They will offer expertise in whatever you need, whether it is administrating benefits and payroll or interpreting employment law to ensure compliance. It will be hard for any internal HR team to equal that, however talented and diverse it might happen to be.

Improved compliance and risk management

Bringing in a specialist HR consultancy will enable your organisation to keep up with the latest employment law developments. This is a very real benefit because you have an obligation to comply with them. Therefore it will help you to manage the risk of things like tribunal action. Losing actions of that kind will affect your organisation financially but also in reputational terms, so the importance of minimising that risk cannot be overstated.

Enhanced recruitment

If you outsource your recruitment, the consultants will be able to devote all of their time to it. This will speed up the process while allowing you to concentrate on other issues. It will also produce enhanced results, because the consultancy will use a standardised and structured approach that is proven to find the right people. That consultancy will be able to attract a more diverse and bigger selection of candidates too, by exploiting its corporate networks. This will improve your odds of getting the very best talent.

Strategic and employee benefits

Focus on core business

If you hand over the more mundane aspects of HR, it will allow your own HR team and managers to focus on core business initiatives. Some examples of the sort of routine tasks a consultancy will handle include payroll and benefits administration, record keeping and policy management. These are important aspects of running a company, but they are also very time-consuming. By outsourcing them, you can concentrate on strategic initiatives to improve the growth and profitability of your organisation.

Better employee benefits and engagement

An outside HR consultancy can potentially enhance your employee benefits packages. This is down to better negotiating leverage, as well as the ability to offer extras like wellness schemes. Having such a consultancy handle some parts of your HR will free up more time for the internal team to work directly with your employees too. This can mean setting up individual training programmes for those who want to learn new skills or dealing with mental or physical health issues. The result will be an improvement in employee engagement and retention levels

Improved data and analytics

A final benefit of outsourcing your HR can be an improvement in the data and analytics you are able to access. HR consultancies invest in the very latest industry technologies, like cutting-edge Human Resources Information Systems. They also have people working for them with an elite level grasp of technology. Because of both of those things, they are able to integrate employee, payroll and other types of data into a single system. This produces better data and fewer errors.

For outsourced HR services in Bedfordshire that include all of these benefits, call FiveRivers Consulting today.