Top Ten Challenges When Outsourcing Your HR Function

5 July 2024 | HR Support

Outsourcing HR UK is an effective way to streamline your business operations and focus on your core goals. But, to ensure a smooth transition, it is essential to know what you need in an HR outsourcing provider.

Below are the top ten challenges to look out for when outsourcing your HR function.

Here are 10 key things you should do:

1. Check the contract duration when outsourcing HR UK

Is a long-term contract right for you?  Many companies offer retained services. Do you want to be tied in for 1 year, 3 years or 5 years? These types of contracts always suit the HR provider, but is it right for you?

You have no way of knowing what your requirements are going to be over the medium to long term. They could easily change from one month to the next. Instead, look for a contract that’s no longer than a year and includes flexible terms. In addition, like an hourly or monthly rate that reflects your use of the service. That way you won’t end up paying for services you don’t need or use.

Better Contracts With The HR Booth

Doing the right thing is always our main priority and it’s important to us that businesses don’t feel like they have to be locked in to a long contract. Therefore, most of our retainer contracts all have a 90 day notice period. By offering this flexibility, we aim to build trust, foster strong working relationships, and demonstrate our dedication to doing what is best for our clients and their businesses.

 2. Don’t make a decision Under Pressure

We’ve attended hundreds of networking events over the years and it always amazes us the number of HR companies and Consultants who strike fear into people to outsourcing HR UK.

Employment law can appear complicated and employment tribunals are expensive. Furthermore, you might think that buying tribunal indemnity insurance is an easy way to gain peace of mind. The reality is that there are many steps in the process to an employment tribunal. If you have sensible HR policies and procedures in place, you are at a very low risk of losing a claim. If you choose a supplier just because they offer tribunal indemnity insurance you could be paying an unnecessary premium.

No Pressure with The HR booth

At The HR Booth, we pride ourselves on offering advice and support tailored to the unique needs of every business we work with. We understand that every organisation is different, and what works for one may not work for another. That’s why we never adopt a high-pressure approach to encourage businesses to engage with us. Instead, we focus on providing clear, practical guidance that allows business owners to make informed decisions that align with their goals and values. Our priority is always to ensure you feel supported and confident, no matter what decision you choose to make. We’re here when you need us, ready to help in a way that works best for you.

3.Check whether you’re dealing with a call centre

To ensure you are receiving the best when outsourcing HR UK, look out for key language such as 24/7 HR support.

What does the HR company supplier really mean by ongoing dedicated 24/7 HR support? You wouldn’t take legal advice from a call centre, and I wouldn’t encourage you to take HR advice from one either. How can you guarantee the person in the call centre is trained and qualified in the HR areas you’re asking for advice? We encourage you to engage with an HR team trained in the area you’re querying and will personally give you the advice you need.

The Best Support from HR Professionals at The HR Booth

Many businesses have approached us because they’ve been tied in to long contracts with certain well known HR consultancies and they’ve not received the level of support they were originally looking for. They either ended up with an online software or someone on the other end of the phone who doesn’t know much about their business or needs. They would rather take on a contract with us and get the right advice and support they need instead of waiting for the other contract to end.

If you are looking for the right advice from a HR professional, contact us.

4. Check if you will speak to the same Consultant every time you make contact

Effective HR support is about building lasting relationships. You should have a dedicated named Consultant or team of Consultants who work with your business and who know you, your company and your team. If you’re having to speak to someone new every time, you’re always having to start at the beginning, and this does nothing to fulfil you with confidence.

Building Relationships with The HR Booth

We pride ourselves on really getting to know our clients. When engaging with us, you will have a dedicated HR professional supporting you with all your HR needs

5. Check if the service includes face-to-face meetings

You should be able to have a face-to-face meeting whenever you want one. It’s the most effective way for your Consultant to get a full understanding of your business and your people. If you had in-house HR support instead of outsourcing HR UK, this is what you would do. I would avoid providers that restrict meetings simply to keep their own costs down – we love getting out to see our clients.

6. Ask what HR Admin support is included?

You should be able to get admin support around recruitment, job offers, new hires, onboarding, general day to day HR admin and exit process.

The HR Booth Admin Support

Find out more about our HR admin support service on our website.

7. Double check the costs

Request a detailed breakdown of costs. Avoid hidden fees to ensure the service fits your budget.

Many providers will only give you basic and ‘safe’ HR advice, leaving you to assess the risk and decide what action to take. If you are outsourcing HR to save yourself some time, this doesn’t help you at all. You will get frustrated with a provider that ‘sits on the fence’ or tells you what you can’t do, rather than what you can do. Ask if the provider will draft meeting scripts and letters for you or make an advisor available to help you with a difficult disciplinary issue, for example. Make sure you’re very clear about what is and isn’t included, and what service will incur extra charges.

The HR Booth Costs

We include costs on our website to be as transparent as possible.

8. What additional services do they offer?

Check what else you get when outsourcing HR UK – information such as newsletters, EBooks, updates to your HR documentation, seminars and workshops.  These are all things retained clients should get as part of their agreement.

Additional Services with The HR Booth

As part of your retainer package, you will receive: 

  • Access to our client portal filled with helpful resources including how to” guides, templates, and helpful documents.
  • Updates on all the latest changes to Employment Legislation as they occur

  • Monthly newsletter with the lates HR, business, and employment law news

  • Discounted Recruitment Packages
  • Plus much more. Find out the full list support included in the retainer package.

9. What happens when your Consultant is on holiday?

This is an important one! What provisions are in place for you if your Consultant is on holiday?  You want peace of mind you’re still getting the service you’re paying for – I’d be surprised if you get a discount if your Consultant is off!

The HR Booth Supports All Year Round

To ensure our clients still receive the highest level of support, we have a full team of HR experts ready to support at any time. We have invested significant time and effort in developing a seamless handover process, supported by a robust CRM system that ensures all team members are consistently informed and up to date. This means if your dedicated HR Consultant is on holiday, one of our other HR experts will be able to pick up where they left off.

10. Ask for testimonials or references!

Find out what other companies are using the provider, and ask for contact names in at least two. The HR provider should be able to provide this, and many might have on their website or marketing material, or third-party websites like the Best of, or Trust Pilot.

Find out what our clients say on our website.

Why Outsourcing HR UK is a Smart Move

Outsourcing HR UK is more than just delegating tasks; it is about improving efficiency and staying compliant. By considering the points above, you can ensure your partnership delivers value to your organisation.

How The HR Booth Can Help

At The HR Booth, we specialise in providing tailored HR solutions to meet the unique needs of businesses across the UK. Our experienced team understands the complexities of UK employment law and ensures compliance in all areas of HR management.

We offer a wide range of services, including:

  • Employee Relations Support: Guidance on handling workplace issues effectively.
  • Recruitment Assistance: Helping you find the right talent for your team.
  • Payroll Management: Ensuring timely and accurate payments.
  • HR Policy Development: Crafting policies that align with your business values.
  • Training and Development: Enhancing employee skills and performance.

With our flexible and scalable solutions, we are equipped to support businesses of all sizes. Our commitment to data security and transparency ensures that your sensitive information is handled responsibly. Partnering with The HR Booth allows you to focus on your core objectives while we manage your HR functions efficiently.

In Conclusion

We hope this helps you reach a decision when it comes to looking for an HR provider.  You can also check out this video which should hopefully help in your decision making.

You can keep up to date with HR and business information by signing up to our newsletter or reading our blog in which we update on a daily basis. Feel free to reach out if there’s anything you would like to ask us about outsourcing HR UK. You can contact us on 01383 668178

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