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 to look for in an HR outsourcing provider. Below are the top ten factors to consider 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.
Whether it’s the right thing to do or not, most of our retainer contracts all have a 90 day notice period, ensuring customers are not tied in long-term.
2. Don’t make a decision Under Pressure
We’ve attended hundreds of networking events over the years and it always amazes me 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.
3.Check whether you’re dealing with a call centre
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.
To avoid this and 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.
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. We pride ourselves on really getting to know our clients. Furthermore, 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.
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.
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.
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.
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!
To ensure our clients still receive the highest level of support, we have CRM system that keeps all team members up to date. This means if your dedicated HR Consultant is on holiday, on 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.
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
