How does HR work in a small business?

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Having started up your own business, you’ll be all too aware of the constant shifting focus of the business owner. Moving between sales and business development, operations, bookkeeping and admin… have you even thought about human resources management and how important HR is for a small business?

We know in the beginning human resources support for your SME may seem like a ‘nice to have’ rather than a ‘must have’. You might have only a few employees, so feel like you don’t have to think too much around HR earlier in your business journey, after all, how hard can it be to manage people who are going to be just as passionate as you are about your business? Then, boom! One of your employees quits due to conflict with their manager, or employees start turning up late consistently and not producing the work they may have previously proven capable of. At this point, it becomes a lot more difficult to support with HR-related issues, versus the more proactive approach we advise at HR Circle.

Having all this weight on your shoulders can affect other areas of your business, after all, if you’re focused on people matters, you can’t possibly begin to focus on business development and delivering for clients.

This is where an outsourced human resources function for small businesses comes into play, for example our HR Helpline service.

The advantages that a HR specialist can bring to a small business are numerous. From onboarding to recruitment support for SMEs, you’re in safe hands with an outsourced HR partner you can trust.

Outsourcing, a resourceful decision?

HR departments in companies are great assets to have, particular in-house and on-hand to lend their thoughts, put processes and procedures in place and step in to make sure that everything runs as smoothly as possible. However, hiring a full time HR professional or having a full time HR team isn’t viable for many small businesses. Being a small business, that would put a hefty weight on the payroll and perhaps not provide the return on investment you are looking for.

However, an outsourced HR service for small businesses is often more viable. Rather than having to employ a whole new department, keep things simple by outsourcing your HR to a specialist managed HR service provider

In the long run, the money that you’ll save on using an outsourced HR provider can be invested in business development and marketing instead.

There’s a good reason why around 39% of small to medium-sized businesses have now chosen to outsource their HR and the number is only getting bigger.

Outsourced but not ‘out of sorts’

You might think that your HR function being outsourced to a third party could dampen communication. However, this is simply not the case. Regular calls, access to a dedicated HR specialist that will be focused on your business and available whenever you need them is often the better approach than filling desks. 

Quick and efficient, without hassle and overhead

Outsourcing HR to experienced and qualified professionals can be particularly efficient as more often than not, your chosen outsourced HR specialist will have years’ experience in the field and therefore would likely be a senior hire for your business.

The HR team will be on their toes ready to assist you with whatever HR-related support you may need, whether it’s managing sickness absences in your small business or simply recruiting and attracting the right talent (and anything in between).

The benefits tend to outweigh the drawbacks of an outsourced HR department on balance, although sometimes our clients grow to such a size, they simply must hire a full time HR professional, which of course we completely understand and celebrate in the success of our clients.

So, if you’d like HR support for your small business and want to understand how to best leverage an HR outsourced partner, get in touch with the team at HR Circle today.

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