There’s never been a better time to outsource HR

Why now might be the time to consider changing how your HR support is delivered

One of the positive outcomes of the COVID-19 crisis is that business leaders have been able to take a good look at their organisations: examining structure and people – and driving change to realign their businesses to meet the challenges ahead.

Organisations often only resort to reviewing whether they are ‘fit for purpose’ in difficult times, when they have to cut costs. In such times, every function of the organisation should come under scrutiny.

HR restructuring may not always be effective

HR professionals, whilst facilitators of the changes that fall out of such reviews, should not be exempt from the cost reduction review process either. Experienced HR consultants do not come cheap.

But all too often, HR restructures result in piecemeal redundancies, or temporary cuts in recruitment and training budget expenditure, rather than a more in depth review of what an organisation really needs from its HR service and how best that service is delivered in the “new world”.

Taking a more strategic approach now to reviewing what your organisation needs from its HR resources, and how best HR services are delivered, will not only yield the cost savings needed today but will also lead to a better service delivery for the future. It’s this latter point that should not be undervalued, as it means HR emerges as a sharper, value adding service.

The basic premise of our approach to outsourcing HR is that it is a support function – primarily providing a service to line managers and your organisation’s people. This is the fundamental reason why outsourcing HR is the solution that delivers cost savings as well as a better service – because outsourcing is all about service delivery.

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HR outsourcing – how it can benefit your organisation

HR outsourcing can provide a cost-effective alternative to having an in-house resource or team, whatever your organisational size. HR outsourcing provides a range of benefits, including:

• Reduced fixed costs

There are a variety of HR outsourcing options available to suit every size of organisation and budget. Our HR service delivery models (see details below) provide a range of options to meet your needs, from “pay as you go” HR support, when you need it, to fixed cost HR outsourcing models which can be delivered wholly on site or with a combination of on-site support and administration undertaken remotely. Delivery models are intentionally designed to provide a very cost-effective alternative to an in-house resource or team, as well as enhancing service delivery.

Some outsourcing models also successfully offer a hybrid or partial outsourcing option. This is a combination of strategic HR services delivered by a substantially scaled down in house team, complimented by outsourced support for the day to day employment issues. The “partial outsourcing” approach brings your fixed cost base right down, with the confidence that your HR outsourcing partner has the additional resources to support you when needed.

The demand for ‘operational HR’ support will vary from month to month. You can never predict when a complex HR issue might arise. Our approach to HR “partial” outsourcing can be integrated with all of our delivery  models (Vero Partner, Team and Enterprise), enabling you to reduce your in-house team with the reassurance that additional capacity is right there, through an extended HR team that is familiar with your organisation and known to your management team.

What’s more, “partial” outsourcing means you only pay for support when you need it, with full transparency of what the outsourced HR team is doing through an intelligent time recording system.

• Behaviour and decision-making style focussed on you as a client

In our experience, one of the key enablers of efficient HR delivery is the mindset of the HR professionals themselves; their perception of HR; their receptiveness to changing their delivery perceptions and whether they feel HR is about ‘advising’ or ‘imposing’ their approach on managers. Our team, for example, all adopt the Vero HR brand values and behaviours that are designed to deliver a highly responsive, quality service to every client.

• Outsourcing provides a solution to the “the single point of failure” risk

Naturally, where organisations have slimmed down their HR teams or, for those that have only one HR resource, the “single point of failure” risk lies in the absence of the HR resource during holiday, sickness absence, maternity and – ultimately – if they leave.

HR outsourcing can de-risk concerns immediately. Access to a wider team resource, with each client having an identified back up professional ensures that knowledge is spread across more than one team member, who can step in when needed at short notice.

For example, having one payroll resource is a high-risk strategy if the in-house employee were to go sick. Vero Pay ensures that adequate contingency is in place.

• Outsourcing solutions for any size of organisation

HR outsourcing can benefit organisations of all sizes. We for example have a variety of proven delivery models from Vero Partner (designed to support small businesses) to Vero Team and Vero Enterprise – both comprehensive HR outsourcing support models with the flexibility to choose between on-site and off-site support. We provide solutions for everyday HR compliance, operational and legal issues, expert guidance on people management, and strategies for leaders facing change and challenges.

• The best of both worlds

A key benefit of Vero Partner, Vero Team, and Vero Enterprise outsourcing models is that they provide experienced resources under your retainer when you need it. Medium sized organisations often struggle when hiring a single HR professional to get depth and breadth of experience with their available budget. Should they hire an admin resource who can’t deal with the more complex issues, or a more experienced resource – at a premium – who spends much of their time on routine HR administration?

Well thought through HR outsourcing models will provide the flexibility to utilise resources at different levels when needed, within your agreed retainer fee, giving you “the best of both worlds”.

• Access to a wider set of services

The HR skillset is incredibly wide-ranging and it’s impossible for an HR professional to be an expert in every area. HR outsourcing gives you access to a wider range of HR skills and expertise when you need it – from Talent Acquisition Specialists (like our Vero Recruit service) cutting the cost of agency recruitment to Payroll (such as our Vero Pay service).

But it’s the application of technology to your HR processes that can be so vital in delivering major and visible improvement through the implementation of, for example, employee self-service. Having a digital platform at the heart of your HR function really can add value and Vero Technology ensures that systems are configured and implemented quickly and at low cost, making HR technology efficiency available to small to medium-sized organisations too.

HR outsourcing can therefore provide access to wider resources when you need it. It provides a cost-effective alternative to employing in house specialist resources that are not needed all the time or are preoccupied by other day to day activities, losing the focus over time on the “raison d’être” of their role.

Whatever your size, there is an HR outsourcing option to suit you …

Interested in learning more about HR outsourcing and what it can do for your organisation? We operate on the principles of keeping things simple, technology efficiency, consistency of delivery, and above all, providing great personal service. Please check out our HR packages

About Vero HR

Vero HR specialises in providing a highly personalised service approach to HR outsourcing.  Supporting clients with less than 50 employees right up to businesses with over 1000 employees, Vero are experienced in the issues that small businesses with “informal” approaches to HR face; that fast growing start-ups encounter and the HR problems larger international corporates face too. Located within easy reach of London, Vero provides the full range of support needs under their branded services, including Vero HR, Vero Pay, Vero Technology, Vero Recruit, Vero L&D, Vero Legal and Vero H&S.  With a highly professional, experienced team, their approach to HR is underpinned by their strong service ethos, centred on supporting the client’s business needs and its people.

If you would like further advice on any of the issues discussed in this article, then email us at enquiries@verohr.co.uk and we will be in touch.

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