The United Kingdom is one of the up-and-coming places to build or start a business. UK-based companies can reach out to over 500 million customers or consumers solely in Europe.
With that number of potential consumers or customers, there’s no wonder why more international businesses of all shapes and sizes are choosing the UK as the prime place to nurture their business.
In the UK, it’s easier to conduct businesses, there’s also a convenient taxation system, and more opportunities to effortlessly help a company grow. And now there’s a new trend in the UK’s business industry that makes managing a firm a lot simpler to do, and that’s the outsourced HR support.
Some of you might have heard of the term, and some of you might still feel clueless about it. Whether you’re the latter or not, you may take a few more scrolls to find out about outsourced HR support and why more UK companies are embracing the concept.
Outsourced HR support, explained here:
Outsourced HR support is the hired out human resource support team from the extraneous third-party supplier. With an outsourced HR support, companies or employers hand over the administration of, and accountabilities for particular HR functions and services to their chosen third-party supplier.
Now that you’ve had a brief introduction as to what outsourced HR support is, it’s now time for you to figure out what made companies shift from the traditional human resource management to HR outsourcing.
- Cost-reduction: Outsourced HR support helps companies save money
At first, people might think that the idea of outsourced HR support is like an additional cost for the company. Primarily that many people envision that the United Kingdom is one of the luxury choices to start a business.
But the truth is, outsourced HR support reduces the company expenses in many aspects. And some of those aspects are below:
- Reduces cost on employees’ wages
From the human resources department’s manager to the human resources department’s staff, companies need to invest to meet their ideal wages, plus the benefits and other incentives. And the expenses for an in-house HR department depend on the company’s size, which means the larger the company, the higher the cost.
However, if a company embraces the concept of outsourced HR support, there will be an evident reduction on the on employees’ wages. Imagine how much one less department could help companies or employers save money.
- Reduces cost for employees’ benefits
Not only that companies and employers might lessen the cost on staff wages, but also have one less department to provide with necessary benefits and reasonable incentives.
- Reduction on hiring and training expenses
Hiring an employee isn’t as easy and as simple as you think it is. From posting job hiring ads to training the new hires, it will cost the company a lot of money. With outsourced HR support, outsourced HR staff ensures that companies will get excellent employees, and at the same time helps reduce the possible hiring and training expenses.
- Reduces cost on the supposed space for the whole human resource department
Outsourced HR support helps reduce the cost of the apparent office space for the whole human resource department. The company will have one less department to spend not only for the office space but also for the office supplies, computer and other devices, electricity, etc.
- Promotes efficient development of the workforce
Down to the next factor that makes more UK companies acknowledge the idea of HR outsourcing is because outsourced HR support advocates a more efficient development of the employees. Outsourced HR support provides a helping hand to companies to effectively nurture their employees’ skills and personal development.
How? Outsourced HR support suppliers enforce performance management programs to guarantee that the workforces will abide by the company’s policies and terms, as well as favourably achieve the business’ goals.
- Compliance with federal laws and regulations
Some companies or employers might find it hard to comply with the laws and regulations as they change from time to time. That’s where utilising the outsourced HR support will enter.
Outsourced HR support ensures that employers are complying with federal laws, legal regulations, and with the proper employee management system. Recognising outsourced HR support helps companies reduce the risks since the third-party provider will be the one to stay abreast on the possible legal changes on behalf of the employers.
Those are some of the reasons why more companies, employers, and businesses in the United Kingdom are shifting to HR outsourcing instead of the traditional one. Outsourced HR support doesn’t only reduce the presumed expenses, but also helps companies to lower the risks of facing lawsuits due to failure of complying with federal laws and other labour and employment regulations.