In 2023, over 50% of UK start ups have no dedicated HR support. That’s a stark contrast to the FTSE 100, where all 100 companies have either an HR Department or an experienced HR professional working for them either on a permanent basis or via an external HR Consultancy. Hmmm – I’m thinking there’s a link here between these successful businesses and the fact that 100% of them have HR support?!
There are many reasons to engage with an external HR consultancy firm to help you either start up your business or scale up your business. Maybe you know nothing about HR and need some peace of mind or someone to work closely with you to manage everything for you, or maybe you are just too busy to keep up with all the paperwork and new or changing employment law. Perhaps you don’t have enough HR or People Management experience in-house to know how to handle some sticky employee situations. Regardless of your reason, here are some excellent reasons to consider hiring an HR consultancy like Meraki HR.
#1 OUTSOURCING HR ACTIVITIES
Outsourcing HR activities can save businesses a lot of money. Maintaining an in-house HR department can be expensive, especially when you factor in benefits, salaries, and training costs. By outsourcing HR activities to a consultancy firm, businesses can save significant money. Did you know the average salary for a UK HR Director is currently £113,693 according to Glassdoor. https://www.glassdoor.co.uk/Salaries/hr-director-salary-SRCH_KO0,11.htm
Another reason to consider outsourcing HR activities is that it can help businesses focus on their core business goals instead of being sucked into the day to day people issues. When businesses are bogged down with HR paperwork, regulations or employee issues, it can take away from time that could be spent on more productive tasks. By outsourcing your HR, businesses can free up time and resources to focus on managing their business.
#2 BRING EXPERIENCE AND EXPERTISE TO THE TABLE
Consultants should be highly qualified members of the Chartered Institute of Personnel and Development (CIPD) and have extensive experience of working at all levels with several businesses across industries and sectors. This gives them exposure and experience of what works in practice to actually help your business and they will also have up to date knowledge of the best practices around managing your people. This can be extremely valuable for businesses as it can help them avoid common pitfalls and mistakes.
HR consultants bring a wealth of experience and expertise that businesses may not have in-house. This can be incredibly valuable when dealing with complex HR issues—having someone on hand who knows the ins and outs of HR can save a business a lot of time and money.
Additionally, consultants can provide expert advice on various topics, such as culture and values, recruitment and retention, benefits, compliance, etc. This can be incredibly helpful for businesses struggling to find solutions to their HR problems.
#3 OFFER COST-EFFECTIVE SOLUTIONS
HR consultants can offer cost-effective solutions for businesses by reducing the cost of hiring individual employees and providing resources to train and develop them in-house. This can help businesses save money and time while ensuring they can access the skilled personnel they need.
HR consultants can also help businesses grow and implement effective HR policies and practices, further improving their bottom line. Therefore, if your business is looking for ways to reduce costs and improve efficiency, working with an HR consultant may be the right solution.
#4 ALLOWS YOU TO FOCUS ON YOUR CORE BUSINESS
As a business owner, getting bogged down in the day-to-day details of running your company is easy. There’s a lot on your plate, from managing employees to dealing with customers. And while all of these things are important, they can take away from your ability to focus on your core business. That’s where an HR consultant comes in.
By outsourcing your human resources needs, you can free up your time to focus on what you do best: running your business. An experienced HR consultant can handle all the details related to employee management, from recruiting and hiring to training and development. This will allow you to focus on growing your business and achieving your goals.
In addition, working with an HR consultant can help reduce the pressure on you as a business owner. They can take on some of the responsibilities that would typically fall to you, such as dealing with employee issues or creating and implementing company policies. This can help alleviate some of the stress of running a business.
#5 ACHIEVING EMPLOYEE ENGAGEMENT
An HR Consultant can help a business achieve its goal of achieving high levels of employee engagement. They can assess the current level of employee engagement, identify areas where improvement is needed, and develop strategies to increase employee engagement. Additionally, an HR Consultant can support and guide managers in effectively managing their team and fostering a positive work environment which will ultimately lead to better employment engagement too. By working with an HR Consultant, businesses can ensure that their employees are happy and engaged, which leads to increased productivity and profitability.
Several factors contribute to employee engagement, and an HR Consultant can help identify which are most important to your team. Once these factors have been identified, the HR consultant you are working with can develop strategies to improve them.
#6 HELP WITH PROJECT PLANNING
An HR consultant can be beneficial in managing specific projects for you such as managing the salary review/salary increase process, or managing an Employee Engagement Survey or the annual appraisal process, are just a few of the many projects that they would help you with.
How many projects do you start in your business that don’t get finished or followed up on? Having your own dedicated HR consultant to manage a project from beginning to end means it will be completed on time and to budget.
This includes everything from identifying potential risks and issues that could impact the project to devising strategies for keeping employees motivated and engaged throughout the project.
#7 MINIMISE COMPLIANCE RISKS
A good HR Consultant knows everything there is to know from an employment law perspective and is essential to the business in minimising compliance risks. The consultant is aware of all employment law and can keep the company up to date on these requirements. This helps the company avoid costly penalties and potential litigation.
In addition, the HR Consultant can help develop policies and procedures to ensure compliance with employment law ensuring you are legally compliant.
The HR consultant can also provide training to managers and employees on compliance-related topics such as Equality, Diversity and Inclusion, or Discrimination. By having a knowledgeable HR consultant on your team, the company can proactively address compliance issues before they become a potentially expensive problem.
#8 EMPLOYEE BENEFITS AND COMPENSATION
An HR Consultant can also be extremely helpful in designing and administering employee benefits and compensation packages. They can work with you to determine the right benefits for your employees and your business. Additionally, an HR Consultant can help negotiate favourable terms with insurance providers and benefit providers.
THE BOTTOM LINE
I’m often told that HR is a “nice to have” or a “necessary evil”, an “admin function” which quite frankly is a bit of an insult to our profession! Good HR professionals add value to a business with their knowledge, expertise and know-how. We are business people, who are good with people, and that’s a pretty good combination! Ultimately, by working with an HR Consultant, businesses can ensure that their employees are happy and engaged, which leads to increased productivity and profitability.
WANT TO TALK?
Whether you are starting your business or growing your business, you may need a little of our help or a lot of our help! Our HR Oxygen Retainer service allows you to choose the option that’s right for you as a start-up or scale up business. Want to know how it works? Then why not give us a call on 01865 648548 / 01539 482709 or book a call with us here and we can chat through the options available.
