For many small businesses and medium sized companies, HR starts with the owner, office manager or another team member fitting people management around their existing workload. As the business grows, that approach can become difficult to sustain, and people start looking for alternatives. If you have been wondering what HR functions can be outsourced, there are plenty of areas where an external HR consultancy can provide practical support without the cost of building a full in-house HR department.
For businesses across Sussex, Surrey, London and the wider South East, outsourcing can provide access to experienced HR professionals when you need them. It can cover routine administration, employment documentation, employee relations and more strategic people management.
What HR functions can be outsourced?
An outsourced HR provider can take responsibility for many of the activities normally handled by an internal HR team, although the exact scope depends on your business, your existing resources and the level of support you require.
Employment contracts and HR documentation
Employment contracts, offer letters, employee handbooks and HR documentation form the foundation of a compliant HR function. An external HR consultancy can draft new documents, review existing ones and keep them aligned with changes in employment law.
This can be particularly useful if your business has grown quickly and your original contracts or policies no longer reflect how you operate.
We offer a range of HR services for small businesses covering employment contracts, HR documentation, policies and procedures.
HR policies and procedures
Businesses need appropriate policies to give managers and employees clear guidance. These might cover absence, holidays, disciplinary procedures, grievances, flexible working, performance management and other workplace matters.
An outsourced HR specialist can identify gaps in your current policies and create documents that reflect your business rather than providing generic templates that do not fit your working practices.
Employee relations
Employee relations can become particularly challenging when a business faces a disciplinary matter, grievance, absence issue or workplace dispute.
An external HR consultant can advise managers on the appropriate process, help prepare documentation, attend meetings and provide guidance throughout the case. This gives business owners access to experienced support when dealing with situations that could otherwise become time-consuming or legally risky.
Recruitment and onboarding
HR outsourcing can also support recruitment processes. This may include preparing employment documentation, advising on recruitment compliance, helping with onboarding and ensuring new starters receive the information they need.
Employers also have responsibilities around matters such as right-to-work checks, which must be carried out before employment begins.
Absence and performance management
Managing sickness absence or underperformance can be uncomfortable for managers who have little HR experience. External support can provide a structured process, helping managers address issues fairly while maintaining appropriate records.
MJV Consulting also offers ad-hoc HR support for businesses that only need assistance when a specific issue arises.
HR audits and compliance
An HR audit can provide an independent review of your current processes. It can identify gaps in contracts, policies, employee records and procedures before they develop into more serious problems.
This can be particularly valuable for a growing business that has never formally reviewed its HR arrangements.
HR systems and administration
HR software can reduce manual administration, but implementing and managing a system still requires time and knowledge. An external provider can help select, configure and implement an HRIS, as well as improve the processes around it.
MJV Consulting provides HRIS implementation services and support with HR software for businesses across Sussex, Surrey, London and the South East.
What are the benefits of outsourcing HR?
The main advantage is immediate access to professional expertise without having to employ a full-time HR manager or build an entire HR department.
For a small business, this can make financial sense when HR requirements are too complex for a manager to handle confidently but do not justify a permanent internal role.
Outsourcing can also free up management time. Instead of researching employment law, drafting policies or working out how to approach a difficult employee issue, managers can seek advice from someone who deals with these matters regularly. In turn, this allows them to focus on the core areas of their job and wider business goals.
Outsourcing HR functions can also improve consistency. Clear processes, appropriate documentation and professional advice help managers handle similar situations in a fairer and more structured way.
Employment law also continues to change, and it’s up to the employer to stay abreast of their responsibilities covering contracts, pay, working time, leave, workplace pensions, recruitment and dismissal, among other areas. If you’re not an HR professional, this can be a tall ask when you’re also balancing other priorities.
For businesses that want ongoing support, retained HR support can provide access to an HR consultant for a fixed monthly fee that solves many of these problems. Businesses that need occasional assistance can instead use ad-hoc support or commission a specific HR project.
What should you consider before outsourcing HR?
Outsourcing HR does not mean handing over every people-related responsibility. Before choosing a provider, consider which tasks you actually need help with.
Start by reviewing your current HR function. Are your contracts and policies up to date? Do managers know how to handle disciplinary or grievance matters? Are employee records organised? Are you confident that your recruitment and onboarding processes meet current requirements?
Next, consider the level of support you need. A business dealing with regular employee relations matters may benefit from a retained arrangement, while a company that only encounters occasional HR issues may prefer ad-hoc advice.
You should also establish who will manage the relationship internally. Even with an outsourced HR provider, someone within the business needs to communicate with the consultant, make decisions and ensure agreed actions are implemented.
Finally, check the provider’s experience and approach. Look for a consultancy that understands small businesses in the context of the South East economy, and can explain employment law in practical terms rather than simply providing lengthy technical advice.
What HR functions cannot be outsourced?
Some HR activities can be delegated, but the ultimate responsibility for employing people remains with the business.
For example, an HR consultant can advise on recruitment compliance, but the employer remains responsible for making sure required checks are completed. All employers have responsibilities around areas including employment contracts, minimum wage, workplace safety, discrimination, payroll and workplace pensions. In that regard, implementation of any HR support still needs to be carried out internally.
Similarly, an external HR consultant can recommend how to approach a disciplinary procedure, but the employer remains responsible for making the final management decision.
This distinction matters because outsourcing provides expertise and support. It does not transfer legal responsibility for being an employer. So if you need help understanding what HR functions should not be outsourced, contact us today.
When should you seek external HR support?
You do not need to wait for a serious employee problem before getting help.
A growing workload is often an early warning sign. If managers are spending increasing amounts of time dealing with HR administration, that time could be better spent running the business.
You should also consider external support if:
- You are employing your first few members of staff and are unsure whether your HR foundations are adequate.
- Your employment contracts or policies have not been reviewed or updated for several years.
- You are dealing with a disciplinary, grievance or long-term absence issue.
- Managers are handling similar employee situations differently.
- You are planning redundancies, restructuring or significant organisational change.
- Employment law changes are making it difficult to keep your processes up to date.
- You need HR expertise but cannot justify hiring a full-time HR professional.
- An existing HR employee needs additional specialist support or capacity.
MJV Consulting’s HR consulting services for small businesses are designed for exactly these situations, providing support that adapts as a company grows.
The value of external HR support for small businesses
Outsourcing gives small businesses a way to access professional HR expertise without creating a large internal function. It can help reduce the administrative burden on owners and managers, improve HR processes and provide experienced guidance when employee issues become more complicated.
It also gives businesses somewhere to turn when an unexpected problem arises. Having an established HR partner can make it easier to get advice early rather than trying to resolve an issue after it has already escalated.
For small businesses across Sussex, Surrey, London and the South East, choosing what HR functions can be outsourced will largely depend on your circumstances, but there is considerable scope to bring in external expertise. If you need help reviewing your current HR arrangements or deciding which areas to outsource, contact us or book a free discovery call with MJV Consulting.
