There are many benefits to both internal and outsourced HR. Internal HR can really add value to a Company of a certain size (over 150-200 employees).


They can create policies and processes, build strong relationships with Managers and assist and advise to help them manage their employees efficiently; they can also ensure that the Company is legally compliant with all decisions to be made in relation to the workforce. The benefits of outsourced HR are access to HR professionals without the permanent financial commitment. The outsourced HR Consultant will provide assistance with all elements of HR and will have a wealth of experience in a number of industries.


Many SME’s do not have an in-house HR department. This could be down to financial restrictions or a head count that does not warrant a dedicated HR department. So could outsourced HR help?


In many SME’s the HR role usually falls to a Director, but is this a good use of time? If an absence management or performance issue should arise, collecting all required information can be extremely time consuming. Is a Directors time conducive on such activities? A Directors time will be best focused on leading the business. In this instance to outsource these activities would be a useful suggestion. The HR professional can offer advice and relieve a Director of HR related tasks, can provide relevant legislation updates, the review and update of policies and procedures and the creation of new processes where required. Companies can chose to have retained HR support services or ad-hoc on-demand HR Consultancy for support, advice and peace of mind. Something else to consider is that HR Consultants will have an alternative HR focussed approach to recruitment than that of a traditional recruitment agency. It’s worth observing the comparison.


Are you an SME that doesn’t warrant a permanent internal HR department? An outsourced service could save you time and money and add value to your existing business model.


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