The founder and Managing Director of P3 People Management has been speaking to Property Aspects about why many firms try to keep HR in-house, and why that might be the wrong call.
A report from Articles Base highlighted that regardless of the size of your firm, HR will form some of the core duties of running your business, such as payroll, training and employee benefits administration. They go on to report that most owners, CEO’s or MD’s of smaller businesses will try and handle HR themselves, believing that it will save them on outsourcing costs.
The reality is these added duties eat up 25% of their time, leading to a difficult juggling act of the different jobs, and leading the company to be less cost effective.
Charlotte Gallagher was on-hand to expand upon the study, believing that people underestimate the value of having a HR expert on their side, while overestimating the costs.
She stated: “At a time when businesses are under intense pressure, more and more companies should look to outsourcing their human resource function – whether it’s larger companies looking to cut the costs of an in-house team or smaller businesses that need help navigating through these difficult times when dealing with the likes of restructuring, redundancies, change of management, and all sorts of other issues that the economic crisis may have brought to the fore.”
“Each business’ requirements will vary considerably dependent upon their needs, from outsourcing virtually all HR processes to selecting specific components such as payroll, recruitment or training. However the benefits of outsourcing are clear, such as the gift of more time by removing mundane tasks from your workload, or making the business more cost effective.”
She concluded: “While there are many competent people in-house who could handle HR, it’s not always straightforward. The mishandling of a situation could lead to Tribunal claims and disputes that can cost time and money. Having a devoted expert at the helm could save thousands in the long run, while making immediate cuts to areas like benefits or base HR functions like admin or payroll.”
P3’s team of HR consultants have experience in the property and construction sector. Property Aspects Magazine appreciates the contribution of their Founder and Managing Director Charlotte Gallagher to this article. For help with HR matters call 0161 493 1963 or email firstname.lastname@example.org