For many small businesses, HR often seems like an unnecessary expense. The assumption is that someone within the business can handle employee management, or that HR is only needed in large companies with many employees. While I agree that hiring a full-time, in-house HR professional may not be necessary for a small or growing business, it’s crucial to ensure you have expert HR support in some capacity—especially as employment laws continue to evolve.
The landscape of employment law is constantly changing, and staying compliant is critical to avoid legal risks. Small businesses often assume that with a general understanding of policies or insurance, they can navigate these challenges. However, without specialised knowledge or regular updates to policies and training, you might expose your business to avoidable risks.
This is where outsourced HR services come in. You don’t necessarily need to retain a full-time HR professional, but having access to expert advice—even on an ad-hoc basis—can make all the difference. A well-timed HR audit, for example, can ensure that your policies, procedures, and training are up to date and legally sound. Many HR consultants offer flexible arrangements, allowing you to pay for services only when needed or maintain them on a retainer basis for ongoing support.
Some businesses may think they’re already covered by insurance or contracts with large HR consultancies, but the reality is often different. From my experience as an independent HR consultant, I’ve heard from many clients that larger firms can fall short when it comes to personalised, timely support. It’s not uncommon for clients to receive stock answers that don’t take into account the nuances of their particular case, which can lead to serious oversights.
I was recently involved in a case where a company had initially relied on advice from a larger consultancy. They were on the verge of making a decision that could have led to a sex discrimination claim. Thankfully, the company chose to appoint an independent consultant for the appeal process and by carefully reviewing the situation, we were able to reverse the decision. This personalised approach likely saved the business from a costly legal issue.
For small businesses, outsourced HR services offer a cost-effective way to ensure compliance, reduce risk, and protect your people without the overhead of a full-time HR department.
Whether on a retainer or ad-hoc basis, having access to tailored, expert HR advice can provide the peace of mind that your business is operating within the law and handling employee matters correctly.