By Kate Russell on Small Business UK – Advice and Ideas for UK Small Businesses and SMEs
She covers five common areas where HR outsourcing providers can fail:
Poor quality service
Lack of flexibility
Poor quality advice
Long contracts
Unnecessary insurance cover
…and then offers some key questions to ask when hiring an HR consultancy.
Business guru Peter Drucker once said: “Do what you do best and outsource the rest”. Wise man. For most SMEs it makes sense to buy in some services on as “as required” basis, and HR consultancy is a prime example of where you need some help sometimes.
Most small businesses are really microbusinesses too small to have an inhouse HR manager. Possibly a staff member with some HR experience has been seconded to the role. But employment law changes so rapidly and you could unwittingly be leaving yourself open to legal action by a disgruntled employee, if you don’t exactly follow HR procedure.
Or it may be that you yourself, as owner-director, handle all your own recruitment – taking precious time away from what you do best: running your business. A 2022 study by NatWest found that 95 per cent of small businesses have struggled when recruiting staff members.
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