In Fact, it’s Less than Having to Recruit One New Employee
The only problem with having a business with employees, is well the employees!
For many small to medium business owners, it is not the business of doing what they do that keeps them awake at night…
It’s managing the team that makes them toss and turn!
Creating policies about employee performance, leave, WHS – well, it can be overwhelming, frustrating and at times, feel like it’s all a little too hard.
So often clients have said to me, “you are my last resort, why is this so complex, I sometimes wonder if it’s all worth it …”
And yes, I get it.
But there is good news…
Those policies, procedures and dealing with people things that you do not enjoy, I love!
Yep, I read all the legal updates, review the outcomes of case studies and subscribe to podcasts, magazine and industry journals about all things HR.
And I have been for 30 years.
What I want more business owners like you to realise is, having your own HR team on hand does not have to cost an arm and a leg.
In fact, here are the top 5 reasons to outsource HR to an expert.
- Inexperience Leads to Mistakes
Like sending a first-year apprentice out to do a job you can’t expect them to get it right.
A recent survey indicated that 81 percent of small business owners handle HR on their own – and more than 30 percent weren’t sure they were doing everything correctly.
Managing employees today is complex and requires specialised knowledge to avoid breaching the long list of complicated law.
Most small business owners simply don’t have that knowledge or understanding and can make serious and costly mistakes in their business.
Whether it’s payroll, to not maintaining accurate documentation, having the right policies in place to manage employees, to supervising employees not managing HR.
This knowledge gap creates risk for the business and costs money, but more importantly, many business owners they find they spend more time than necessary on HR tasks.
And even more research shows that despite working an average of 50 hours or more per week, business owners only spend about 30 percent of that time on actual business functions.
The rest of their time is spent on administrative and other tasks that don’t contribute to revenue.
As the business owner your job should be to focus on income producing activities and let others take care of the day to day tasks.
And yes, you could get your own in-house HR person.
But even a graduate, with no experience will cost you upward of $72,000 and that is not including super, Workcover, desk, computer and all the software programs they need to do their job!
- You Are Able to Manage Risk in the Business
The Australian Employment and Labour Laws are very complex and change regularly. It can be difficult for you to remain up-to-date on regulations that affect your business. But for the Government and industry, ignorance isn’t an excuse and fines for not being up to date can be in the hundreds of thousands.
When you outsource to HR professionals you don’t have to worry about all the updates, legislation and being on top of all that pesky paperwork. When you are compliant with these laws you avoid costly lawsuits that could potentially be brought on by employees or fines by the government.
Having a HR Business Partner will ensure that your business is up to date, compliant and that your business and your employees’ best interests are protected at all times, no matter what changes happen in the industry.
- Efficiency, Streamlining and Effectiveness of Your Business
We all know that maintaining an efficient and productive workplace is critical. But it is not as easy as it all seems. And the old adage, more levels, more devils comes true with business.
The more money you make, the more employees you have, the bigger premises you need and all that means you need a more efficient human resources systems and processes.
Having a HR Business Partner to help manage your HR means (you and your managers) spend less time trying to work out what to do when issues arise (as your partner is right there to help you with all things people!) and can therefore spend more time dedicated to improving the efficiency and effectiveness of your workforce, which means more to your bottom line.
- Employee Development And Employee Management
In the old days, if someone wasn’t working out, you could tell the employee and they’d not come back to work for you tomorrow. Those days are long gone. It doesn’t work that way anymore. In Australia, it’s quite complex and there’s a process that every employer needs to follow in relation to managing performance. Get it wrong, and you risk facing legal action and hefty fines, not to mention the reputational and brand damage this can cause.
Having an outsourced HR Business Partner can help you manage employee performance and development more effectively.
- Compliance Is Done For You
This is number one area where many small and medium sized businesses really struggle to keep up. The greatest challenge with all of this is that a failure to comply with the legislation can lead to serious consequences.
You have enough as a business owner already to deal with.
Why not hand it over to a trusted provider who can help you understand and comply with these laws and regulations.
So, if you know that you are ready to move forward and get the HR support that your business needs, let us be your dedicated, remote HR team with over 45 years’ experience for less than half the cost of a first year HR graduate!
Get back to doing what you do best and let us deal with the rest.