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Outsourcing HR can save you money

Outsourcing HR can save you money

A study by Articles Base has reported that Outsourcing HR is in its greatest level of demand for 75 years, since the business model was first created. This is because of the significant savings in time and money, outsourcing the HR process can now offer businesses, as well as other long-term benefits.

Charlotte Gallagher, the founder and managing director of P3 People Management, has noticed that a trend may be catching on for businesses – outsourcing is the way to go.

“The focus of outsourcing for clients is on flexibility, access to specialist knowledge, affordability, reducing risk, providing cost certainty, and using HR measures to increase profitability. This is achieved by building a strong working relationship with clients so we can support the in-house functions or use as stand-alone service.”

“Like any relationship, it needs nurturing and investment to get what you want out of it. Two key points to remember when considering outsourcing are to not view outsourcing as a way of getting rid of a problem, and don’t think that once something is outsourced it no longer needs managing. However the benefits are that the bulk of the management of HR is now in the hands of an expert who can help share the risk.”

The study showed that outsourcing HR could save up to 20% in employee benefits, 20% in worker’s compensation payouts, and up to 10% in standard HR functions, like compensation and payroll, which could result in annual savings of thousands, even after paying outsourcing fees. It was also reported that “HR activities that are essential but cannot be done differently from competitors are being outsourced to reduce costs and complexities of internal operations. Companies have seen expenses drop by as much as 20 percent or so by moving the administration and transactional tasks outside.”

“HR is something that needs handling with respect, so before businesses jump into outsourcing for the savings of time and money, and access to HR specific expertise, they need to consider a few things first. They need to understand what they currently get out of HR, select a partner that works to really understand them, establish a collaborative relationship with board-level support, and most importantly sign the contract but don’t abdicate responsibility.”

P3’s team of HR consultants boast a collective experience of over 55 years. Property Aspects appreciates the contribution to this article from Founder and Managing Director Charlotte Gallagher.

For more details call 0161 941 2426 or email