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Why do you need HR anyway?

Posted on 24th May 2024 at 15:04
The first question usually asked by owner managers in the SME space is “why do I need HR?”  
 
The business has gone so far without the cost and bureaucracy this brings, so why now?  
 
The answer to this question is simple – the regulatory environment is becoming more and more onerous, with failure to comply becoming more and more expensive, and as your business grows, you also need to grow and develop your people, reducing staff turnover and creating an attractive place to work in an increasingly competitive labour market. 
 
For small and medium-sized enterprises (SMEs), the challenge of maintaining an efficient HR function can be both confusing and daunting... 
Employing a full-time HR administrator or advisor typically costs around £35k annually. This single hire usually adopts a generalist approach, handling a broad spectrum of HR tasks. However, what most SMEs actually need is a flexible, multi-faceted HR resource.  
An effective HR function for an SME requires balancing various roles: 
 
HR Administration (50%): Handling day-to-day transactional processes such as absence management, processing leavers, and managing HR documentation.  
 
Recruitment (20%): Managing advertising, sourcing, and interviewing new staff to support business growth. 
 
HR Management (20%): Supporting managers in their development, advising on complex employee matters, and attending management meetings. 
 
HR Strategy (10%): Providing strategic advice to the Board to help achieve business objectives. 
 
Meeting these diverse needs with a single full-time employee is not only impractical but also costly. This is why over half of UK SMEs choose to outsource their HR functions. Outsourcing offers significant cost savings and, crucially, the flexibility to scale HR support from administrative tasks to strategic planning. 
 
Like most professions, HR is a broad church. There are some highly talented HR generalists, but also Talent Specialists, Employee Relations leads, Learning and Development experts, and systems and data specialists. Look for a provider understands these challenges and provides comprehensive HR solutions tailored for SMEs.  
 
We engage with business owners to address three critical areas: 
 
Compliance and Legal Peace of Mind: Ensuring that all HR processes adhere to legal standards, thereby mitigating risk and enhancing peace of mind. 
Managerial Support: Developing managers' skills to enable effective team leadership and problem-solving. 
Talent Acquisition: Attracting and recruiting the right talent to drive business success. 
 
Outsourcing your HR function with a provider that can cover these three cruical fucntions not only optimises costs but also ensures you have the right expertise at the right time. Whether it's administrative support, recruitment, managerial advice, or strategic planning, we provide the flexibility your business needs to thrive. 
 
Partner with Humber HR People for a tailored, scalable HR solution that grows with your business. Let's solve your HR headaches together and create a foundation for sustained success.  
 
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