Effective Human Resources (HR) management is crucial for the success and sustainability of any organisation. HR departments or services play a critical role in managing employee relations, ensuring compliance with employment laws, and fostering a positive workplace culture. However, many organisations may overlook the necessity of robust HR outsourcing support until significant issues arise and as such, it’s often seen as a reactive need rather than a proactive tool.
Following on from our recent blog post sharing five signs you need to outsource your payroll, here are five clear signs that your organisation needs HR outsourcing support.
One of the most telling signs that your organisation needs HR support is an increased rate of employee turnover. High turnover rates are costly and disruptive, leading to loss of knowledge, decreased morale among remaining employees, and increased recruitment and training costs. For instance, a study by Oxford Economics revealed that the average cost of replacing an employee in the UK is over £30,000, considering lost output and logistical costs.
Several factors contribute to high turnover, including inadequate pay and compensation, lack of career advancement opportunities, poor management, and a negative work environment or culture. HR outsourcing professionals can help identify the root causes of turnover through exit interviews, employee surveys, and data analysis. They can develop strategies to improve employee retention, such as creating career development programmes, enhancing benefits packages, and fostering a positive workplace culture.
Navigating the complex landscape of employment laws and regulations can be challenging. Compliance issues, such as violations of employment laws, safety regulations, or benefits compliance, can lead to legal problems, financial penalties, and damage to your organisation’s reputation. In 2021 alone, UK companies were fined more than £11m for breaching health and safety regulations.
If your organisation struggles to keep up with these regulations, it’s a clear sign you need HR support. HR professionals stay updated on the latest legislation and can ensure your policies and practices are compliant. They can also provide training to management and employees on relevant laws and regulations, helping to mitigate the costly risk of non-compliance.
Frequent conflicts or unresolved disputes among employees, or between employees and management, can disrupt productivity and create a toxic work environment. These conflicts might stem from misunderstandings, differences in work styles, or interpersonal issues. According to a study by the CIPD, around 38% of UK employees experience conflict at work, leading to stress and reduced productivity.
HR outsourcing support is essential in these situations to provide mediation and conflict resolution services. HR professionals are trained to handle sensitive issues impartially and can help facilitate open communication. By addressing conflicts promptly and effectively, HR can help maintain a positive workplace and prevent issues from escalating.
Effective onboarding and training are crucial for seamlessly integrating new hires and ensuring they are productive from the start. If new employees struggle to adapt or if there is a lack of structured training programmes, it can lead to decreased productivity, low morale, and eventually add to those high turnover levels. A report by Glassdoor found that employees who rated their onboarding experience as “highly effective” were 18 times more likely to feel highly committed to their organisation.
If this is an area of concern for you, HR support can streamline the onboarding process, making it smoother and more efficient. Outsourced HR professionals can develop comprehensive training programmes that equip new hires with the necessary skills and knowledge to succeed in their roles. Additionally, ongoing training and development opportunities can help employees stay engaged and grow within the organisation.
Managing employee performance is a critical aspect of HR that involves setting clear expectations, providing regular feedback, and addressing performance issues promptly. If your organisation struggles with these aspects, it can lead to underperformance and plummeting productivity.
HR outsourcing support can help you implement effective performance management processes. This includes establishing clear performance metrics, conducting regular performance reviews, and providing constructive feedback. HR professionals can also offer training to managers on how to handle performance issues and develop improvement plans for underperforming employees. For example, this blog post shares the steps our HR team recommends for placing a team member on a performance improvement plan (PIP).
Recognising the need for HR support is the first step towards building a healthier, more productive, and successful organisation. Increased employee turnover, compliance issues, conflict resolution challenges, onboarding and training difficulties, and performance management issues are all clear signs that your organisation could benefit from professional HR outsourcing support. Investing in HR can lead to improved employee satisfaction, better compliance, and ultimately, greater organisational success. Don’t wait for issues to escalate; take proactive steps to ensure your organisation has the HR support it needs to thrive – not just survive.
If any of these signs resonate with you, get in contact with us today to find out how our professional HR outsourcing team can support your organisation.
