For a small business, employing an HR manager can feel like a big step.
You might have 10 employees, 30 employees or even 100 employees and still find yourself asking the same question.
Do we really need someone in HR?
The answer is not necessarily.
Every business needs to deal with people issues, but that does not mean every business needs to employ a full time HR manager.
There are several ways to get the HR support your business needs, and the right option will depend on the size of your business, the complexity of your workforce and how much support you actually need.
Let’s look at the options.
Option 1: Handle HR yourself
For very small businesses, the owner or manager will often deal with HR themselves.
It can work.
You may only have a handful of employees and relatively few HR issues to deal with.
The problem comes when something more complicated happens.
An employee raises a grievance.
Someone is struggling with their performance.
An employee has been off sick for an extended period.
You need to make changes to contracts.
You are considering restructuring the business.
Suddenly, the HR responsibility that was manageable becomes another job on your already long list.
There is also the question of keeping up with employment law.
HR is not something you can simply learn once and then forget about. Rules and guidance change, and businesses need to make sure their processes keep pace.
Option 2: Employ a full time HR manager
Having an HR manager within the business can provide dedicated support.
They can get to know your employees, your processes and the way your business operates.
For larger organisations, this can make perfect sense.
But for a smaller business, you need to consider how much HR work you actually have.
If you do not have enough work to keep an HR manager busy every day, you could be paying for a resource you are not using fully.
There are also the additional costs associated with employing someone, including salary, pension contributions, holiday, training, equipment and other employment costs.
For some businesses, it is the right solution.
For others, there is another option.
Option 3: Outsource your HR support
Outsourced HR gives you access to professional HR expertise without employing a full time HR manager.
You can use the support you need, when you need it.
That could mean getting help with an employment contract one week and dealing with a performance issue a few weeks later.
It could mean having someone review your employee handbook, helping you manage sickness absence or providing advice when you are dealing with a difficult employee situation.
You can also arrange ongoing HR support if your business needs more regular input.
The important thing is that the service can be matched to the needs of your business.
What can an outsourced HR consultant actually do?
A good outsourced HR service should be much more than someone you call when an employee causes a problem.
For example, Westcountry HR can support businesses with:
• Employment contracts
• Employee handbooks
• HR policies
• Employment advice
• Performance management
• Sickness and absence
• Recruitment
• Training and development
• Restructures and HR projects
• Day to day HR support
The aim is to give business owners access to the expertise they need without creating another full time position.
What about employment law?
This is one of the biggest concerns for small business owners.
Employment law can feel complicated, particularly when you are trying to run a business at the same time.
You may know that something needs to be done, but not know exactly how to do it.
Perhaps you have heard about a change in employment law but are not sure whether it applies to your business.
Or perhaps you have an employee situation that you have never encountered before.
Having access to an HR professional means you have someone you can talk to before making an important decision.
That can give you greater confidence and help you avoid making a situation more complicated than it needs to be.
Outsourced HR does not have to mean handing over control
Some business owners worry that bringing in an HR consultant means losing control of their business.
It should be the opposite.
The purpose of good HR support is to give you the information and advice you need to make your own decisions.
You remain in control.
Your HR adviser provides the experience, explains the options and helps you understand the process.
That is particularly valuable when you are dealing with something unfamiliar.
How much HR support does a small business actually need?
There is no magic number of employees that suddenly means you need an HR department.
A business with 20 employees could have relatively straightforward HR requirements.
Another business with 20 employees could have complex shift patterns, high staff turnover, recruitment challenges and regular employee relations issues.
The industry you operate in also matters.
Hospitality, care, trades, manufacturing and professional services can all have very different HR requirements.
The important question is not simply:
“How many employees do we have?”
It is:
“Do we have the right HR support for the people and situations we are dealing with?”
What if you only need help occasionally?
That is one of the advantages of outsourced HR.
You do not necessarily need to sign up for a large ongoing package.
Some businesses need regular monthly support.
Others need occasional advice when something comes up.
You may also need help with a specific project, such as updating contracts, creating an employee handbook or reviewing your HR policies.
Westcountry HR offers support monthly, hourly or by project, allowing businesses to choose the level of support that suits their needs and budget.
A simple way to think about it
Think about your business like this.
You probably have an accountant, even though you do not employ a full time accountant.
You might use an IT company, even though you do not employ a full time IT manager.
You may use a solicitor when you need specialist legal advice.
HR can work in exactly the same way.
You can have access to professional expertise without having another full time member of staff on the payroll.
Your HR department, without the department
That is exactly what Westcountry HR is designed to provide.
Based in Newton Abbot, Westcountry HR supports small and medium sized businesses across Exeter, Plymouth, Devon and the wider South West.
We work alongside business owners and managers, providing practical HR advice and support when it is needed.
There is no unnecessary jargon and no complicated corporate approach.
Just straightforward HR support that is appropriate for your business.
Could outsourced HR work for your business?
If you are currently dealing with HR yourself, ask yourself a few questions.
Are your employment contracts up to date?
Are your HR policies current?
Do managers know how to handle performance issues?
Do you know what to do when an employee raises a grievance?
Are sickness and absence being managed consistently?
Do you have someone to turn to when an unfamiliar HR issue appears?
If the answer to several of those questions is no, it may be time to look at your HR support.
You do not necessarily need an HR department.
You may simply need the right HR support when you need it.
Find out where your business stands
Westcountry HR offers a free HR Healthcheck for small and medium sized businesses.
It is an opportunity to look at your current HR arrangements, identify any gaps and understand where you may need additional support.
There is no obligation to employ a full time HR manager and no need to commit to more support than your business actually requires.
Your HR department, without the department.
Contact Westcountry HR to arrange your free first visit.