Does your growing company need HR management? Here are three options to consider.
One of the most obvious signs that a company is growing successfully is that it is recruiting more people – bringing in the additional skills it now requires to continue on that growth trajectory. Irrelevant of how many new people join your company each year, people management is essential to get right from the beginning, as soon as your first employee is onboard.
Does your growing company need HR management?
Whether you have a couple or a few hundred employees, you should be investing in HR management. It’s about more than complying with employment legislation – it’s about giving your employees the best experience possible. Developing and nurturing their skills requires strategy and effort. You’ll be rewarded with motivated and engaged teams who want to play their part in the company in the long term.
What are the options for HR management?
There are many options for HR management and in this article, we discuss three key ones.
Option 1 – DIY HR Management
Managing your people by yourself is the most common option when the business is small. The senior leadership has grown the company to a good size so far and is still intrinsically linked to the day-to-day management of people and operations. Keeping HR management in-house might allow for the budget to be used elsewhere in the business, but it does come at a cost – the time of the managers and directors. If things go wrong, there’s also the cost of a potential employment tribunal and reputational damage to factor in.
As the number of employees grows, so do the responsibilities of those managing HR in the company. What once felt manageable, now feels chaotic and stressful. The gaps in knowledge and practical experience managing people start to show. There are missed opportunities to grow and develop talent, and growth starts to slow down.
In our experience, this is the point where company directors explore the next two options.
Option 2 – PAYG HR Management
Accessing qualified HR advice as and when you need it (Pay As You Go) bridges the gap between managing your own HR and outsourcing to an HR consultant. As your company size increases, specific problems arise which you troubleshoot by speaking with an experienced HR professional. You may have a discipline you need support to manage or maybe your employee documentation and processes need to be brought up to standard.
Whatever the advice you require, investing in external guidance for specific projects can be beneficial from a budgeting perspective in the short term. It will resolve the immediate HR issues that you face but it will not tackle the root cause of it. Most likely, small issues will escalate, and this could ripple across the entire workforce. Rather than be reactive, it’s time to proactively manage your people.
Option 3 – Outsourced HR Management
To leverage the people power in your company, you need to have proactive HR management in place. You recognize the need to have access to qualified advice and to be strategic in your recruitment and development of individuals, and that can’t be sustained by accessing advice through a Pay As You Go model. You may not be ready to employ that HR expertise directly into the business, but there is another option – to outsource your HR management on a retained basis.
By partnering with an HR consultant, they can take ownership of HR management for your company, giving you access to the full spectrum of HR advice that you need. Packaged as a retainer, you’ll typically have a fixed monthly fee that guarantees you access to a qualified team that will manage everything across the employee lifecycle. Most importantly, you’ll have an experienced HR Director to help lead your talent development and create a positive workplace culture where your people can thrive.
Is it time for your company to invest in HR management?
Your company will be investing in external consultancy for lots of different areas – finance, operations, sales and marketing. HR is another area where external advice can have a hugely positive impact on boosting company performance and attracting talent through a rewarding company culture.
At ProspHR Solutions, we bring the human as well as commercial focus to HR. We have the expertise and know-how to take care of all your HR needs, whilst supporting you to leverage your people power to drive organisational effectiveness.
We offer access to our strategic HR advice through a variety of packages including Pay As You Go and retainer services.
To find out which of our services suits your company best, get in touch to book a Prosperity Call. Email helpmybusinessthrive@ProspHRSolutions.com or call us on 0345 548 2124.
