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Regardless of size, all businesses have numerous HR-related responsibilities, even those that only employ a handful of people.

Many small businesses don’t employ a dedicated HR specialist, let alone a whole department. Instead, HR responsibilities may fall on the business owner or be shared amongst employers. As your small business’s HR requirements grow, this strategy may become unsustainable, so you’ll need some support.

In this article, we’ll learn about different types of HR support for small businesses to help you choose the right level of support.


Why does my small business need HR support?

Even small businesses have many HR responsibilities, including recruitment, payroll, employee performance and attendance management, and legal compliance. These essential HR duties are integral to keeping the business running smoothly and driving its growth, so they must be given the time and attention they deserve.

Small businesses have limited resources, which are usually invested in core business functions. However, HR functions like recruitment, payroll, and employee attendance management are crucial for maintaining good employee relations and performance. Prioritising investment in HR is essential as your employees are the backbone of your business. Neglecting important HR responsibilities can adversely affect the business, making it important that small businesses seek the appropriate level of HR support.

Without HR support, small businesses could encounter the following problems:

  • Poor employee retention
  • Difficulty recruiting
  • Payroll errors
  • Legal penalties
  • Reduced productivity
  • Employee disputes

Small businesses that do not have the time or resources in-house should consider outsourcing their HR requirements to a specialist to avoid the damaging effects of poor HR.


What HR support for small businesses can I get?

If your small business’s HR requirements have outgrown your existing capabilities, the obvious answer is to recruit an HR specialist. However, recruiting a full-time staff member is not always the most cost-effective solution, particularly when you’re only a small business. If your budget or requirements do not justify recruiting a permanent staff member, it’s time to consider other options.

  • Recruit a part-time in-house HR professional – If your requirements are significant and consistent but don’t justify a full-time in-house HR specialist, then recruiting a part-time staff member may be the right option for your small business.
  • HR outsourcing services – If your HR needs aren’t significant enough to recruit a permanent staff member, then HR outsourcing services can provide a flexible and professional alternative. Whether you require help with one-off HR tasks or regular assistance with routine jobs, outsourcing services like those provided by People Based Solutions can be tailored to meet your requirements.
  • Online HR software and tools – HR software and digital tools like payroll calculators can help to increase efficiency and streamline HR processes.
  • HR consultancy services – Need help or guidance on a specific HR topic? HR consultancy services provide expert HR advice for small businesses to help guide them through unique challenges or projects.

Whatever your HR requirements, it’s essential to take the time to consider which type of support is the best fit for your small business.


HR support for small businesses vs employing an HR specialist

Unsure whether you can justify the expense of employing an HR specialist? Well, you don’t have to! While employing someone in-house certainly has its benefits, if you don’t yet have the HR requirements to justify doing so, outsourcing HR tasks is a cost-effective way to get the professional and specialist support you need. Let’s compare the advantages and disadvantages of outsourcing your HR needs versus employing someone in-house.

  • Money – Outsourcing tends to be a more cost-effective solution for small businesses as they only need to pay for the level of service they require rather than paying an employee a full-time salary plus benefits.
  • Expertise – HR outsourcing companies usually employ multiple experts, allowing them to provide small businesses with expertise in various subjects. In comparison, if you employ someone in-house, they may not have the same breadth of knowledge. However, given time, they would gain a deep understanding of your business’s specific HR requirements.
  • Flexibility – Outsourcing offers ultimate flexibility as you only need to pay for the level of service you require, and the service can be adapted and scaled alongside your business’s evolving needs. On the other hand, an in-house HR specialist could offer consistent and readily available support.
  • Dedicated support – An in-house HR specialist can provide personalised support in alignment with company culture. However, outsourced services may not always offer the same level of integration with the business.

Each option has unique benefits and limitations; choosing the option that best aligns with your business’s specific requirements, budget, and strategic goals is important.


HR support for your small business with People Based Solutions

People Based Solutions is a team of HR specialists offering HR outsourcing services that make HR simple for small and medium-sized businesses.

Based in Warrington, People Based Solutions provides bespoke HR support services to small businesses in Manchester, Liverpool, Warrington, and further afield. Our various HR support packages are designed to suit a variety of requirements and budgets. Can’t find exactly what you need? We also offer bespoke and pay-as-you-go HR support.

When you choose to work with People Based Solutions, you’ll receive enterprise-level HR documents, systems, and HR advice for small businesses at a fraction of the cost of hiring in-house HR specialists.

For more information about our HR services or to discuss your requirements, call our team on 01925 202 217 or email enquiries@peoplebasedsolutions.co.uk.




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