Dispelling The Myths Of HR Outsourcing

Deciding to outsource your company’s HR functions is no easy task. There are numerous things to consider, such as timing, workload and budget, but there are also many myths surrounding outsourcing that further confuse businesses. From believing this incurs high additional expense to imaging that outsourcing results in a loss of control, some myths are repeated so often that businesses begin to suppose they are true.

We examine the most common myths in an attempt to dispel them and help business owners make a more informed choice about outsourcing their HR functions:

Myth:  It’s too expensive

Fact: SMEs and start-ups may require the services of a fully-functioning HR department but may lack the resources to employ one or more full-time members of staff to perform those duties. If costs are a major consideration for you, and remember to factor in additional office space, equipment and specialist software, then HR outsourcing may help you save money in the long term. Outsourcing allows business owners to draw upon the services of specialists as and when they are needed, without the need for a long term employment commitment and all the overheads that entails.

Myth: Outsourced HR companies just deal with paperwork

Fact: For some companies, ‘just’ dealing with paperwork may be all that’s required from an outsourced HR service, but many others recognise and value the wide range of additional services which are available. Experienced HR professionals from within an outsourced team can also offer their expertise in the complex spheres of recruitment (where job ads must be posted, CVs reviewed, interviews held, selections made and employment contracts drawn up), training and development (where performance plans must be devised and put in place, policies and procedures defined and drafted, and training programmes designed and implemented) and disciplinary issues and grievances (where the intervention of a neutral and unbiased third party can diffuse tensions and resolve the matter more effectively than someone in-house) among other things. 

Myth: They will take control of everything / they won’t take enough control

Fact: Outsourcing your HR functions means that your chosen provider can grow with your company, providing a wider range of services as your needs change. This approach also enables your provider to fully get to know your company culture, your hopes and your aspirations to better understand what you’ll require in the future, so you get the support you need without feeling that your HR functions are either being taken over or are run by a faceless entity based elsewhere. Whatever level of support you need for your business, outsourced HR will be able to provide it. Whether that’s simply dealing with weekly or monthly automated administration tasks such as payroll, taxes and National Insurance contributions, or a more hands-on approach which offers the benefits of full-time support, you can opt for as little or as much input as you need.

Myths can take time to dispel but once the truth is discovered we’re sure you’ll appreciate the benefits that outsourcing HR functions can bring your organisation. Stay tuned to our blog for the latest HR news and follow us on Twitter, Facebook and LinkedIn for regular updates.