Benefits of HR Outsourcing
Reducing Overheads through HR Outsourcing
One of the advantages of taking up outsourcing services is that your HR costs become immediately transparent. Hidden costs like HR staff holidays and absence are removed, as are the risks of additional costs. We commit to deliver a service covering some or all of your HR responsibilities, and in doing so take on the responsibilities that go with those services.
Here are some examples of how outsourcing HR achieves cost savings:
- Straightforward cost-per-head savings
The simplest way that outsourcing reduces costs is that it removes some of your salary overheads. We have found that outsourcing always makes financial sense for this reason, thanks to our economies of scale. Also, you reduce your fixed overheads by only paying for the level of service that you need.
- Less risk of non-compliance with new employment legislation
If your HR department cannot keep up with new legislation, it exposes you to risks like employment tribunals. Thanks to our focus on HR, all of our policies - and therefore your policies if you ask us to manage your HR - are always compliant with legislation.
- No need for hardware investment
All of the services are delivered to you via your existing hardware, or via the Internet through our 'HRonline' service. So you don't have to host any additional capability on your systems, as could be the case if your in-house HR function kept pace with new technology.
Access to Qualified HR Experts
HR Outsourcing with NorthgateArinso means that the highest levels of HR expertise are made available to you. This is true if you ask us to manage selected aspects of your HR function or if you agree on a fully managed arrangement. This expertise takes the form of consultancy services, day-to-day administration and help desk support from qualified HR advisers.
Accessing NorthgateArinso's expertise brings a range of benefits:
- All areas of HR activity are carried out to a high standard - Within HR departments of even the largest companies, there are often shortfalls in expertise. These might include recruitment, employment contracts, remuneration policies and health & safety to name just a few. Within our large team of experts, all of these skills are available whenever you need them.
- he risk of legislation non-compliance is removed - The risks of non-compliance include employee relations problems, as well as tangible financial damage. We reduce these risks by keeping you appraised of the latest employment law. Our expertise also lets us address issues at an early stage with a view to resolving matters as soon as possible.
- More expertise at less cost for SMEs with scarce resources and no formal HR function - If you have little or no HR resource of your own, you might be relying on non-experts from various areas to fulfil HR processes. This creates a risk of things going wrong - and therefore of costs that could have been avoided. But you can pass processes like recruitment, appraisals and writing employment contracts to external experts AND save thousands of pounds.
- Strategic HR expertise is available at board level - For some of our clients, for example at Annington Homes and Baco, our senior HR consultants work with the board to develop and implement HR strategy.
Achieving best practice across all disciplines
It can be difficult for HR departments to continually align to best practice standards. To achieve best practice across all HR functions, the necessary blend of skills, experience and resources is needed. This is often impossible for SMEs and costly for larger organisations.
Because of our size and experience, we are able to maintain best practice standards. We have reached these standards through regular benchmarking and constant development of our processes. Our experience of providing services to a range of customers in many sectors has also strengthened our ability to achieve best practice. So whatever functions you ask us to manage for you, you will be certain that best practice will be followed.
Here are some examples of the areas in which we achieve best practice:
- Creating HR policies and procedures - We don't shoe-horn new clients into pre-arranged policies, but prefer to develop appropriate new policies with them using benchmark standards as a guide. These are then incorporated into your employee handbook as part of the communications process.
- Training and development - Through tools like a training needs analysis, training programmes can be developed and implemented. These can include management development programmes.
- Recruitment - By accessing best practice in recruitment, you can increase the quality of new appointments and improve retention rates. We can contribute through improved recruitment processes, greater use of on-line technology, assessment centres and management training.
- The handling of potentially contentious issues - Procedures for issues like redundancies, tribunals and disciplinary proceedings can be improved with our advice and support. The personnel issues resulting from mergers and acquisitions can also be addressed and proper policies put in place. This has often saved organisations many thousands of pounds in avoided costs.
Please note: We create HR outsourcing arrangements that precisely match each client's needs, so some or all of the above areas might be included. For example, if you are already very confident in the quality of your training function it needn't be included in the agreement. HR as you want it.