The extent you decide to outsource your HR will determine whether you retain HR people internally. Outsourcing your HR does not always mean outsourcing all aspects. To help determine your needs, a great HR partner will work with you to conduct a review. This will identify what is working well in the context of your commercial and cultural objectives and where there is room for improvement.
Outsourcing HR can help you improve efficiency and access specialised expertise. However, this is also often thought to mean transferring responsibility to an external source, and this is where problems can occur. It is vital to understand that the outsourced task is completed by an external source but responsibility for the task always remains within the organisation.
Often, a combination of some internal expertise and focus coupled with outsourcing is a great option. The key is understanding what your business needs in terms of skills and knowledge and then determining how you can access it. HR tasks usually encompass the following technical areas:
- Employee Relations and Industrial Relations
- Organisational Development
- Workplace Health and Safety
- Learning and Development
- Remuneration and Benefits
- Workforce Planning
Due to the diverse nature of HR, you often need a variety of skills that are better found in a team rather than one dedicated HR person. An internal HR team requires an initial outlay and regular training and development. A HR partner puts a team of people, each with their own specialised skillset and a set of broad HR and industry experience, at your disposal and allows you to focus your time and energy on revenue-raising activities.
The best way to determine how much of your HR to outsource, if any, is by completing a periodical review of your HR capability. The effectiveness of your HR solution is paramount to ensuring your HR budget is used wisely. Reviewing your HR model annually will enable you to see when improvement is needed.
As your business grows and changes, so too should your HR strategy. By staying up-to-date with the options available, you can ensure your budget is put towards effective solutions that allow for future growth and innovation.
A professional, experienced HR partner will ensure day-to-day operations are well managed, while maintaining focus on the future direction of the HR function.