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5 Reasons Outsourced HR Can Work for Your Business

“In order to build a rewarding employee experience, you need to understand what matters most to your people.” Julie Bevacqua.

As we’ve outlined previously, staff are the most important asset to any business. This of course brings challenges and complex situations that need to be legally compliant but also tap in to the psyche of your employees to keep them engaged with your mission. Take the time to understand how effective HR can help your business and you’ll see just how important it is to longevity and sustainability.

Many SME’s would have asked themselves at some point in their business journey:

‘’Do I employ someone to run the HR functions or do I outsource?’’

Both have their advantages, however, in this article we’ll examine the top 5 reasons to outsource your HR over employing someone and highlight where good HR can drive the business forward.

  1. Reduce Costs

One of the major advantages of outsourcing is that is saves costs to the business. What would it cost the business to employ an experienced HR professional? Or even a HR team? For example, when you instruct HR Star as your chosen partner, you’ll get 20 years of HR Director level experience and all the day-to-day administration taken care of within the team. All for a fraction of the cost it would be to employ a team in-house. Not only that, the cost for hiring and training staff can be significantly reduced by hiring the right people and keeping them for longer, so avoiding the associated costs with high staff turnover. Finally, but very importantly, you’ll be spending less time on the HR functions and focusing on growth, sales and revenue. How often do business owners spend doing ‘’other things’’ when you could be focusing on developing the business? On average, 70% of the time. Outsourcing can give you the priceless gift of time and the support of a whole department that fits within the budget.

  1. Fresh Eyes

The value of external opinions and ideas can be invaluable. We can all get weighed down in the day-to-day duties, that maybe we don’t see the obvious changes that can help streamline the processes in place. Good HR does come with complex administration, but on top of that there is the strategic work – staff surveys, employee development, one-to-one’s, engagement, HR workforce planning and recruiting to name a few. Who is going to be doing that? This is so important for keeping hold of your best talent that it needs the expertise to execute effectively. By bringing in external HR help, you can avoid the potential pitfalls of ‘’office politics’’. All staff get access to an impartial HR team that are away from the rest of the colleagues. They have an external ally who can take on feedback, sometimes counsel their concerns, and represent them in a way which is professional and without prejudice. Peacekeeping is what we do!

  1. Help to Avoid Mistakes

Everyone makes mistakes, it’s natural, we are all human beings. How we learn from those mistakes is what is important, particularly in business. Business owners cannot be the absolute experts in every field – a good leader recognises when they need help and brings in the right people. Mistakes can take many forms; from recruitment nightmares, unexpected grievances, not having the right policies in place, legal errors and losing touch with your staff. These types of errors can be expensive to rectify or harm the reputation of the business. The best way to safeguard against these mishaps is to have the right level of experience and expertise in place to ensure the lessons are learned or covered before the mistakes are made. In this instance, outsourcing a HR team that can discuss the issues together and move forwards far outweighs employing a single person to take on HR duties who might be making decisions that they are not 100% sure of.

  1. Staying on the Right Side of the Law

This is huge! The last thing any business leader wants to face is the prospect of having to get involved in legal issues. Burying your head in the sand does not make problems go away! There is legislation in place to protect both employees and employers so having a full grasp of what you need to do legally is paramount. This covers everyone’s back and helps keep harmony amongst the workforce. This can range from employee contracts, handbooks and policies and payroll to administering the correct level of training or just having a process in place for any situations that may cause harm or be dangerous. There are more sensitive issues too like grievances, dismissals, employee behaviour and redundancies which also need the TLC of specialised HR professionals. Our advice is to get it right from the start and keep up-to-date with changes that affect your business.

  1. Experience and Support

As we’ve highlighted throughout – experience of all aspects of the HR function is key to getting it right. Hiring someone at advisor level in-house will not necessarily bring the all-round skills needed to drive the department. Our team brings a wealth of high-end Director level experience and vast knowledge of the administration process. When outsourcing, your business can go from no HR support at all to having a full HR team in place almost overnight – bringing all the aforementioned benefits.


Look after your team and your business. When you start taking chances or cutting corners you potentially expose the business, your livelihood, to situations that could prove too much to overcome.

At HR Star we do things right and open your eyes to how ‘’proper’’ HR can be so important to growing your business long-term. We are there for our clients around the clock, offering 24/7 support and clients know we are there for them – no matter how big or small the query is.

If you’ve read this and feel you’re ready to have the conversation, please get in touch as we’d love the opportunity to show you how passionate we are about not only getting your HR working effectively, but also becoming a part of your long and successful journey.

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