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It’s only natural to question the value of engaging external HR managers when you have in-house HR already. What’s often surprising is the outcomes that the two working together can bring. Sometimes, it’s nothing short of transformational.
Your internal HR team probably has a great handle on your day-to-day operations, workplace culture and values. They are the cornerstone to your people practices. But they also aren’t superhuman.
HR is a very broad area, yet it can present highly specific challenges around compliance, culture and strategy. Outsourced HR managers bring in nimble, specialised expertise when and where it matters, giving you the benefit of access without the ongoing overheads.
Understanding when that external knowledge is needed is the key to outsourcing effectively.
5 Signs Your Business Has Outgrown Its Current Approach to HR
Business growth is a great thing, but it can also bring bottlenecks. Here are some of the critical warning signs your business might have outgrown its current HR setup:
1. HR tasks are falling to leaders
This might be the operations manager, the HR manager, or the business owner themselves. If you’re finding that everyday HR tasks are pulling leaders away from their core responsibilities, it can be a clear sign that external support could help.
2. The business is scrambling with a lack of direction
This can manifest in a number of ways. Hiring reactively or impulsively. An onboarding process that leaves new employees uncertain. Employees are struggling to understand how their work ties into the bigger picture, affecting employee engagement and retention.
3. Workforce needs are growing in complexity
Perhaps the business is facing a restructure, building a new team in a different location and navigating compliance, or implementing a major new software platform. Either way, current HR practices might not be equipped to navigate this new level of complexity.
4. A workplace issue surfaces
As a business grows, it can be harder to keep track of every employee and legal requirement, and as a result, issues can crop up. A complaint, a performance problem or an unfair dismissal claim can be the catalyst for engaging external advice.
5. Your HR professionals are begging for help
Your internal HR team might be feeling stretched thin, under-supported or straight-up lost. It’s not a sign of inadequacy; it’s a sign that they need better support or access to specific expertise to help them do their job.
You might also notice several of these signs arising at once, as they rarely occur in isolation. Quite often, businesses will reach out to address one issue and quickly realise that outsourced HR support can bring advantages over multiple workforce challenges.
The Businesses That Benefit Most from External HR Support
External HR managers aren’t right for everyone. Outsourced HR support benefits businesses at certain sizes, stages and situations, including:
- Medium-sized businesses: These tend to have between 15 and 100 employees. They might have one or a few people handling payroll and everyday HR, but are not yet ready to commit to a full internal HR team.
- Fast-growing businesses: Rapid growth can bring with it greater hiring volumes, compliance obligations and culture complexity: often all at once. This group also includes start-ups, which need to be able to move and scale quickly while minimising their workforce risks.
- Businesses that have lost their HR manager: Losing a HR manager leaves a company vulnerable to compliance risks and administrative holdups. These businesses can benefit from having experienced interim cover while they recruit for the role again.
- Businesses looking to make their HR practices more robust: There are many businesses looking to professionalise their HR practices, but the internal team might not be sure where to start. Franchises and multi-location businesses can also benefit from developing well-structured HR practices across their reach.
As you see, it’s not a simple matter of headcount; it’s more about whether the business has the capability to handle the people challenges it currently faces.
The Role of an External HR Manager: More Than Policies and Paperwork
If you don’t have one in place already, a capable HR manager offers a lot more than simple hiring and firing. They oversee recruitment, onboarding and workforce planning. They ensure performance management and performance appraisals are handled (and documented) correctly, minimising risk. They plan and implement training and development according to future workforce needs, and manage employee relations such as workplace investigations and dispute resolution. At a higher level, they develop robust HR policies and an overarching HR strategy, and guide change management when it comes to new digital transformation or restructuring.
External HR managers, such as those at HumanX HR, can deliver the above services either for a certain project or on an ongoing basis. In many cases, they’ll hold specialised knowledge and experience that augments the great work of an internal HR team.
What Your Business Gains from an External HR Manager
What exactly you gain will depend on your objectives, but the broad benefits include:
- Insights from senior HR expertise: Outsourcing brings in strategic and operational HR capabilities immediately. That can bring strength to your overarching strategy, policies, workplace wellbeing, productivity and more.
- Flexibility to scale support up or down: Hiring a permanent senior HR professional is expensive. With external support, you can adjust access as business needs change, minus the extra full-time salary and overheads.
- Reduced compliance risk: Not only can external HR professionals accurately manage workplace relations, but they can also provide consultation and refine practices to minimise potential fallout over time.
- Objectivity and broader perspective: An expert, neutral viewpoint can prove invaluable when managing an internal issue, such as handling a workplace dispute or conducting an HR audit to troubleshoot issues.
Flexible HR Support, Built Around Your Business
Bringing in an external HR manager can be genuinely transformative when it comes to the development and growth of your business. It brings tailored, objective and flexible expertise to HR challenges, from employee relations and performance management to wider HR strategy.
Whether your team is stretched thin or facing hyper-specific challenges, HumanX HR can tailor HR consulting and outsourced HR to suit around Australia. Get in touch today to see what ideal external support could look like for your business.
