| Ten years ago many Australian small businesses didn't | | | | significantly decrease. This then allows the HR |
| think they needed human resource management. In | | | | Manager to spend time making a positive impact on |
| 2010, we are seeing businesses with only thirty staff, | | | | the business rather than treading water in a myriad of |
| employing a part-time HR Manager. HR management | | | | HR administration. By doing this you are freeing up |
| has obviously become an important role in small | | | | your resources to focus on delivering results that are |
| businesses. This has largely resulted from workplace | | | | meaningful to your core business, rather than |
| legislative changes and the extensive media coverage | | | | constantly fighting fires. |
| providing education for small businesses. As an | | | | Other reasons for outsourcing HR include; |
| Outsourced HR company we also believe that small | | | | - access to resources and systems that have been |
| business is seeing the benefits of having what the big | | | | developed at best practice level usually by a group of |
| guys have always had in HR. Whilst part-time HR | | | | professionals that you simply can't get through one |
| professionals might suit your business they are often | | | | part time HR Manager. |
| limited in what they can get through in such a small | | | | - Minimizing risk and ensuring compliance with what |
| amount of hours per week, especially if the HR | | | | seems to be constantly changing legislation |
| Manager is bought in to set up systems from scratch. | | | | Different models of HR outsourcing |
| Setting up best practice HR systems, no matter what | | | | There are different ways to outsource your HR. Many |
| the size of the company, takes a lot of time and | | | | businesses are choosing to outsource payroll as the |
| usually there are more immediate needs that draw on | | | | cost benefit seems to be worthwhile. Others are |
| the time of the HR Manager in small business. | | | | outsourcing their HR administration tasks such as |
| I met with an HR Manager just last week who is | | | | employment agreements and recruitment, but still |
| performing the payroll and HR function for a company | | | | managing performance reviews, terminations, |
| with over 150 staff. Needless to say she is a very | | | | mediation, position description development and policy |
| busy woman. As a consequence, the underlying HR | | | | and procedure development in-house. There is no right |
| management structure had not yet been constructed - | | | | or wrong way to outsource. Key to establishing a |
| there simply wasn't time. We've seen time and again | | | | good outsourcing relationship with your provider is in |
| how much freeing up of resources occurs when a | | | | knowing what your business objectives are, what your |
| solid HR structure exists in a small business. | | | | in-house capabilities are and what currently isn't |
| Reasons to outsource HR | | | | working for you. |
| One of the best reasons to outsource HR services in | | | | Clearly in small business cash flow is king and hefty |
| a small business is that an external company can build, | | | | outsourcing rates might not be sustainable. However, |
| tailor and implement a system without getting caught | | | | streamlining your HR systems and hence reducing HR |
| up in the day to day tasks and issues in your business. | | | | workload by outsourcing system development, can be |
| Once the system is in, and everyone is trained in its | | | | a cost effective solution that empowers your HR |
| use, the HR role gets shared between line managers | | | | manager to be able to get on with the real work of |
| and HR administration and the workload can | | | | doing HR. |