The Benefits of Outsourcing for Small Businesses

The management of human resources can be drain on small businesses. Time and resources spent on non-revenue generating activities could be better spent elsewhere whilst leaving the day-to-day HR tasks with an outsourced specialist. Many small businesses are realising the multitude of benefits from outsourcing such time-consuming activities and letting a trusted third-party deal with recruitment, employee matters and payroll for example. Whilst it can work well for many business models, whether it’s right for yours will take some consideration. Here are some of the benefits:

Professional Skills

A company of fewer than 50 employees does not often have its own dedicated HR department. The responsibilities usually fall to a manager who has some relevant experience. However, HR is a huge responsibility and if that manager also has other job commitments, not everything might be actioned as it should be. This is important as there is a huge amount of legislation surrounding HR.

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Therefore, to lighten the load and assure that matters are being dealt with in accordance with legislation, small businesses can greatly benefit from the expertise of an outsourced personnel professional. For hr outsourcing services, visit


Getting to grips with HR law is a full-time job and the failure to adhere to the strict regulations surrounding employment can lead to businesses getting into some deep trouble. By outsourcing this responsibility, you can carry on with what matters to you most without the stress of hiring, payroll and other legal requirements. The cost of outsourcing when compared to an Employment Tribunal should put this into context for you.


An outsourced professional will have access to all the latest software and technology for running your HR side of the business. This is something that many small businesses wouldn’t have the time or money to invest in. This means your business can benefit from things like online holiday booking, payroll and many other HR systems without the ongoing costs of operating them yourself.


Finding the right staff can be invaluable to a small business but if you know little about it yourself, it can mean you missing out on attracting the right talent. An HR professional will know all there is to know about the often-laborious task of hiring, from marketing to interviewing. They know how to target the right people, where to advertise and what can and can’t be asked in an interview.

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Staff Retention

A business with smooth HR processes will lead to happier employees. If they feel listened to, dealt with quickly and professionally and believe solutions are in place, they are much more likely to feel confident about the company, thus reducing staff turnover.

Back to Business

One of the most significant advantages of outsourcing your HR commitments is that you can return your focus to the core elements of your business and what you do best, be that sales, marketing or design. Without the need to spend time on human resources, managers are free to deal with the daily running of their business.

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