1. Save Money
You can save considerable sums of money through outsourcing your HR department and in turn improve employee relations as Managers and employees are driven closer together and need to find ways of overcoming obstacles. Costs saved can include monthly salaries and benefits of any HR staff but also agency fees and legal fees.
2. Drives innovation
Employees and Managers can feel ‘freer’ to motivate and inspire employees without the feeling someone is watching them to make sure they ‘stick to the rules’. Sometimes managers fear that HR may veto or look down upon a more innovative employee engagement initiative which stops their execution of an idea.
3. Creates a culture of trust
Ironically and against the best of HR professionals intentions, the HR Department can often be perceived as the ‘police’ or those that are there to sack you. Most employees are aware that HR is employed by the business and that can subconsciously or consciously mean that they make the connection that HR are there to do the ‘boss’s bidding’- no HR, no problem!
4. Improves Managers abilities and knowledge
Managers are there to manage! Shock horror, revolutionary I hear you say! However, often Managers who lack in confidence can shelter behind their HR colleagues and/or use HR as the scapegoat for changes they are seeking to make in the Company or team. Managers should be encouraged to develop strong relations with employees and a ‘training and development culture’ can still be encouraged through senior leadership initiatives without the need for a HR department necessarily. Managers’ knowledge and abilities can be improved through experience.
5. Drives efficiencies through processes
Not having one point of contact in the business means you need/should detail how managers process starters, leavers and handle the usual employee day-to-day activities. This can improve productivity, cut down on things like getting contracts of employment issued and put the emphasis on getting payroll information correct, because it rests with the Manager, but there is a process or HR System to support them in doing this.
6. Best practice through knowledge across multiple industries
Through engaging with an outsourced HR business to support on an ad hoc basis rather than retain in-house HR, you bring a wider knowledge base. You then engage individuals who can bring multiple perspectives and vast experience of practising HR in different environments who can suggest approaches and changes to HR and Employee engagement that you may not have otherwise tried.