Running a business is hard. It is even harder when your business is growing, and you have to juggle all of the responsibilities of managing the business, the team, and then, HR.
Often overlooked by those who work for large entities, a competent HR department is vital to the success of any business. These trained teams oversee payments, compliance, and legal documentation and, of course, they resolve issues that can pop up in the workplace within a legal framework. Thus, if you are accumulating more staff and you don’t have an HR department, things can get messy very quickly.
So, you may be asking how you will know that you need to outsource your company’s HR department. Here are some of the key signs to keep an eye out for.
High Employee Turnover
The first sign that it may be time to outsource your HR to a dedicated external team like the HR Dept is that you have a high staff turnover.
In most companies, this looks like a turnover of around fifteen per cent and above, but, it should be noted that certain industries have higher rates. The reasons for high staff turnover vary but are generally linked to issues with low pay or benefits, as well as poor work-life balance and insufficient training and development for staff. Of course, when you outsource your HR team, the team will be able to determine the best benefits for your staff, as well as help with training and development options. This will keep your staff happy and will likely lead to higher staff retention.
Training Problems
It may be the case that the staff you have are not happy with the training options that are offered to them. This is commonly the case when such methods are outdated, or if there are inconsistencies.
Depending on the area in which you work, it may be more likely that you will need to provide additional training for your staff. By hiring an HR team to oversee this, you eliminate the guesswork. Assuming that the HR team are skilled in your area of work, they will know which options to offer your staff to keep them up to date, which will lead to better staff retention and a more competent workforce.
Poor Job Advert Responses
Did you recently advertise a job role online, only to get minimal responses, or even unsuitable candidates applying?
This is likely due to issues with the job advertisement, which, as you might expect, can be resolved by hiring an external HR team with experience in your area. They will know what to look for in candidates, such as qualifications and experience, and will be able to create an appealing and authentic job advert to attract candidates. This will help you to find the perfect candidate for the job and will ensure that you don’t waste money on advertising the role.
Compliance Issues
Keeping up with compliance and HR regulations can feel like a monumental task, and, as such, many teams require additional help to keep up with them. Indeed, employment law is always changing, and if you aren’t up to date, it can have serious ramifications for your business if you don’t stay informed.
If you’re struggling to update your business compliance in line with modern requirements, it’s time to consider outsourcing HR services to oversee this process for you. Such teams will not only be up to date with all the legal requirements in your area of work, but they will also be able to advise on how to implement these requirements, without spending excessive amounts of money.
Payroll Errors
A business that cannot successfully manage its staff’s payroll is not going to be popular, and soon, you may find yourself on the receiving end of staff leaving, or, you may even get some letters across your desk from a union!
Payroll errors are unforgivable and usually appear as missed payments or incorrect amounts due. It screams of unprofessional conduct and, as before, is usually going to result in legal action. So, rather than take that road, outsource your HR. This will ensure that your company maintains a professional image and that your staff get paid on time, which will likely keep you in their good books!
Remember, there are other HR issues that can indicate a need for help. If you feel that managing your business’s HR is becoming too much, or your team is trying to oversee this area and is stretched too thin, don’t be afraid to reach out.