Outsourcing HR Administration Services – 7 Signs It’s Time!

We understand that making the decision to outsource can be difficult for SMEs and fast-growing businesses due to the perceived loss of control and additional cost. Especially if the value which will be added as a result cannot yet be fully appreciated.  However, outsourcing HR administration services typically saves businesses money by making better use of limited resources – this in turn will help to protect and even grow your business.  Read The Power of Outsourcing HR Administration.

So, how do you know if outsourcing HR administration services could be right for your business? Here are the 7 signs to look out for:

1. Your senior staff are working in the business and not for the business

Your senior employees should be focusing on their core tasks and the business strategy.  If your senior employees are spending their time on admin and non-business value add activities, then it could be time to consider outsourcing HR administration.

2. You are paying an HR consultant for HR administration

If you are paying an expensive, but probably very good HR consultant for repetitive (but important) HR administration this is another sign it may be time to outsource HR administration.  It seemed like a good idea to have them in a day or two a month to help with various people issues.  However,  their main business contribution has now probably become more administrative as that’s all there is time for.  You can improve their productivity and value to your business by outsourcing administrative services to a HR administration provider – keeping your HR consultant free for more complex issues as required.

3. On-boarding tasks for new starters aren’t a high priority

Perhaps new starters are receiving information in an untimely manner or even incorrect information.  A good on-boarding experience can impact the retention of new starters and your company brand.  Read our blog Is Poor Hr Administration Causing Your New Starters To Quit?  So, if you’re only communicating with new joiners when they accept your job offer and then again when they arrive on their first day, it’s time to consider outsourcing administration services.

4. You are missing opportunities to address poor performance during probation periods

Unless you schedule a review, your employees will automatically pass their probation period once the duration is up.  This means you could have people in the business who have passed their probation when they are not performing as you would expect.  By which point, you will have missed the opportunity to fail their probation. If their performance doesn’t improve, you will inevitably need to spend significant time and resources on exiting them from your business.  Outsourcing HR administration services can help you to better manage the probation stage of an employee’s lifecycle so that only the people who are performing as you would expect to stay in your business.

5. You haven’t reviewed your policies or handbook for at least a year

If you haven’t been regularly reviewing your policies, you could be providing out-of-date material to your staff. This can lead to miscommunication, misinformation and a risk of failing to respond to important legislative updates.  These will also be crucial documents to call upon during any employee relations disputes.  Outsourced services that provide HR support for small businesses can ensure your HR documentation is always up to date.

6. Sourcing information in employee files is a lengthy process

When you receive a reference request, you’re unsure where the employee file is, which dates they worked for the business or their job title.  It takes a long time to locate the relevant files in a cupboard or deep in your server.  HR administration outsourcing effectively manages all HR-related files in one system. This means that finding information files is quick, efficient and easy.

7. Your business is stagnating

Outsourced services that provide HR support for small businesses can have a significant impact on growth, innovation and productivity for SMEs.  At The Curve Group, our clients come to us for HR administration because they want to focus on their core business.  They often find that they are spending time on non-value add business activities.  By outsourcing administrative services, you will be able to secure and even grow your business by freeing up time to focus on your strategy, business objectives and goals.

To find out more about how HR support for small businesses could benefit you, read Outsourcing HR Administration: 5 Unexpected Benefits for SMEs.