Need a HR Department?
The Pros of Outsourcing For New Businesses
Is your new business starting to take off? Are you in the process of hiring more staff? As your business grows, you will need to ensure that all of the staff and legal areas are overseen, which means you will need to think about expanding your current HR department or investing in one.
This seems to be an ideal option at a glance, but what if there was a way to get all the benefits of an HR department without having to pay a fortune? Here, you will be walked through the benefits for small businesses of paying for outsourced HR services.
Saves Money
Running a business can be expensive. More so if you need to hire an HR team to be onsite. You will need to consider space costs, operating costs, and, of course, the cost of paying the wages of your new HR staff. It’s costly, and it may be an unnecessary expense.
By opting for outsourced HR, you will save your business a lot of money, which can be invested into marketing, buying more produce, or expanding your business online.
Frees Up Time
HR tasks may seem simple from the outside, but they aren’t. Many people assume that an HR team files paperwork, takes photocopies, and makes phone calls. In 2025, it is a bit more involved than that, and, if you aim to create a HR department from the ground up, you will be shocked at the amount of work that needs to be done.
You are a business owner, and you are likely interested in providing a service or selling goods. You don’t have the time to file time off requests or oversee statutory sick pay. So, why not outsource to a company whose role this is? This will save you the hassle, the stress, and the time of filing paperwork and overseeing all manner of legal jargon, allowing you and your staff to have clearly defined roles around marketing your product or selling goods.
Access To HR Technology
HR departments have evolved beyond Microsoft Excel to track expenses, and, with more companies integrating AI into their workspaces, it can be very hard for small businesses to keep up with the latest technology. Indeed, a lot of modern HR tech is compliant with legal requirements, which can force small business owners into a corner when it comes to choosing the right tech to help them oversee their team.
Alternatively, you could opt for outsourcing to an HR department, which will likely have all the latest tech to oversee your business’s HR needs. For many HR departments that operate on an outsourcing model, this will likely include employee and applicant tracking, paperless onboarding, tracking any business mobile apps, employee portals, and benefits for staff. This will save you the need to have this system integrated into existing systems, while also allowing you access to the HR technology. So, you won’t have to cut corners on costs and will be able to have the entire HR software as and when you need it.
Increased Compliance
If you thought learning about business law and tax law was hard, it has practically nothing on HR and compliance law. When you have an HR department, you need to ensure that all of the staff who run it are trained in compliance. Remember, as your company grows, so do the risks, and you will want a team trained in managing staff, dealing with legal issues (should they arise), and financial complications.
Needless to say, that is a lot, and training staff in those areas is going to be expensive. Or, if you aim to hire staff with that training to work for you onsite, it will not be cheap. Outsourcing allows you to ensure that all of the legal compliance for your business is met, while also helping you to get access to the expertise of a diverse team of HR professionals, should a more complicated issue need resolving. That way, you can use them when needed, and not worry about paying multiple people for different roles.
Streamlined Processes
OK, so when it comes to HR processes with new businesses, it can be a bit, well tricky to get the processes right.
A new employee may raise a grievance with an HR team who are still learning the ropes, and there may be a lot of delays, incorrect handling, and errors on the way, which only complicates things.
Luckily, depending on your area of business, there will be guidelines in place in your state or area that outline the correct steps to take with all manner of HR matters. Therefore, when you outsource to an HR department, they will know what to do, when to do it, and, if necessary, what paperwork needs to be filed. The end result is complaints, grievances, and staffing issues being handled correctly, quickly, and with minimal delays.
