Curious business owners and CEOs often ask us to explain how HR Outsourcing works for small/medium sized businesses, and what the benefit would be.
In wanting to give a concise answer, we suggest the interested party consider HR Outsourcing in three segments:
1/ Outsourcing of HR Administration
This spans across the entire employee life cycle, from recruitment to on-boarding, performance, development and exit. They are the time-consuming administrative tasks, such as posting job adverts, collecting tax file and superannuation details, scheduling performance appraisals and conducting exit interviews.
This is the engine room of the HR function that binds it all together and is often well complimented by using a HR technology platform.
2/ Outsourcing of HR Advisory Services
When we talk about HR advice, we’re predominantly covering employment legislation e.g. what obligations does the business have if it wishes to terminate an employee or if a complaint has been raised?
It also serves as a coaching mechanism for employees and managers who may wish to talk through an employment related scenario e.g. how should we consider remuneration increases this year for the team? What skills and experience should I look for in a new hire?
Finally, HR advisory support gives the business access to the latest trends, tools and HR content in the market to help ensure that the HR function stays up-to-date and relevant.
3/ Outsourcing of HR Strategy
Most businesses have either a short, medium, or long-term strategy, so it makes sense that genuine consideration is given to those who have been asked to deliver on that strategy – the team.
By taking a thorough review of the businesses current state and desired future state, a HR strategy can be developed with clear initiatives, corresponding time-frames and defined outcomes.
The level of support would typically require a HR Consultant to work onsite with the business on a regular or ad-hoc basis for the duration of the HR strategy.
Conclusion
It should be stated that these segments are not mutually exclusive to one another. The practical reality is that a business may require 1, 2 or all 3 areas to be covered through HR Outsourcing. This layered approach allows for a targeted and flexible business solution, generally unavailable without a multi-person internal HR team.
If you’d like to learn more about HR Outsourcing, please call us on 1300 887 458 or enquire online. Liquid HR is a leading HR consultancy with offices in Melbourne, Sydney and Brisbane, providing a tailored approach to your HR needs.
