Six reasons to outsource HR as an SME

When it comes to HR, an increasing number of SMEs are choosing to outsource. Given that HR is something that even smaller firms cannot afford to ignore these days, there are real benefits to bringing in outside expertise. This blog will list some of them.

Cost Savings

One problem that every SME will have in common is a limited budget compared with large companies. Outsourcing HR is a good way to cut back on costs, because you will not have to pay for the expense of software and training programmes, benefits and salaries. By contrast, if you set up your own in-house HR department, you will be liable for all of those.

Specialised Expertise

HR encompasses a lot of very complex subjects – from recruitment and diversity, equity and inclusion (DEI) policies to employment law. Not many SMEs will have people on the payroll with expertise in all of those areas, and getting it wrong can cause serious issues. Bringing in consultants from outside will guarantee you comprehensive HR knowledge and experience.

Increased Efficiency

If you outsource your HR, it will mean mundane jobs like administrating benefits and salaries are handled outside the company. That will free up time for core business activities, increasing productivity and efficiency.

Enhanced Compliance

The laws and regulations concerning HR are not set in stone – they change on a frequent basis. By outsourcing to a company that is dedicated to HR, you will ensure that your business remains compliant without having to keep track of the latest developments yourself.

Access to HR Technology

A specialist HR consultancy will usually have access to cutting edge technology and systems. These are likely to be beyond the financial means of most SMEs. Making use of the latest available HR technology can enable processes to be simplified and made more efficient, and can ensure more accurate analysis of data.

Improved Employee Experience

The purpose of HR is not just to ensure legal compliance; it is also about making sure your business is a good place for people to work. Outsourcing it will guarantee processes that are objective and fair. This can have the benefit of boosting morale levels among your employees and making them more likely to stay.

At FiveRivers Consulting, we offer outsourced HR consultancy services with a track record of success. Call now for more information.