Employee Relations, HR

Outsourcing HR companies Vs In-House HR departments

Every business has HR needs, from handling employee interests during operational growth to legal compliance and establishing internal policies. However, not every organisation needs to establish an HR team in-house. The human resources needs of a business could be met just as well by outsourcing this service, especially where the company is small to medium sized. So, how do you know whether an in-house or outsourced HR solution is the best one for you?

The question of cost

This is often a major factor in any business decision, especially when it comes to creating HR resources. An in-house HR team is always going to be the most costly, from the expense of the recruitment process to ongoing contractual commitments. If the business is large enough then this may be a cost that is fully justifiable but for most enterprises it could be excessive. This is where outsourcing HR needs can be a very smart business decision – rather than paying for a team on-site and on call all the time you can simply access the HR support that you require, as and when you need it.

Investment in the team

The right in-House HR team can be enormously beneficial for a sizable company. HR can help to establish and develop the company culture, for example, and will give you insight and control over internal practices. However, it can be challenging to find the right HR team for your business especially if budgets are tight and the team is likely to be small. Many in-house HR professionals often find themselves looking outside the business to find consultant support for specific issues for which there is no expertise among the established in-house team. This can create challenging circumstances and mean that budgets soar. Outsourcing HR function often provides access to a much wider spectrum of expertise covering a range of issues, from recruitment through to complex disputes. It’s also much easier to find the right fit when you have more options to choose from.

Avoiding internal bias

An in-house HR team will regularly engage with employees from right across the business. While this does have its benefits in terms of coherence it can also create challenges that are particularly pertinent to a department like HR. Bias is one of these – if your HR team has a lot of contact with employees objectivity may be lost and bias can come into play. If you’re working with outsourced HR support there are still plenty of opportunities for your outsourced team to get to know the business but no danger of bias distorting the HR approach.

Access to Human Resources Support

The obvious advantage of having an in-house team is that they are on-site and so access to HR support is easy to arrange. However, given the range of technology that exists to facilitate constant communication and access today this does not need to be the obstacle to HR outsourcing that it once was. In fact, in the era of remote working that we’re now in it’s much easier to see how outsourced services can be just as responsive and full as those offered in-house.

When it comes to the question of using HR that is outsourced or in-house there are some clear benefits to outsourced support that an in-house team can’t offer.

If you want to discuss your HR outsourcing services needs get in touch.

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Saul HunnaballSaul Hunnaball
15:44 12 Aug 22
We have worked with Park City for our HR and Health and Safety support for many years now and have always received an excellent service.Carley is our Consultant and she is always so helpful, as are... her colleagues when she is unavailable.I would highly recommend Park City.read more
Lea CuttingLea Cutting
08:31 27 Jul 22
Park City have worked with us for many years, advising and guiding us regarding HR and Health & Safety, along with supplying valuable training.We work with many people in several areas of expertise,... Sara Godfrey, Jennie Galione, Ashley Williams, Sam Parcell, Stephanie Devans, Poppy Hayhoe.They build confidence within our company and are always available with support and advice.They provide a consistent, professional, hands-on service, second to none!Thank you from DH Industries Limited.read more
Vikki PringleVikki Pringle
11:12 20 Jul 22
The team at Park City offer us the right level of service needed to confidently run a small business. They keep us up to date with UK policy HR requirements, help us manage any staff changes or... issues and policy documents. The team are informed, friendly and remain professional in my experience.read more
Tracy MeadTracy Mead
07:12 20 Jul 22
The DS Group have been working with Park City now for a number of years and we have found their HR services to be invaluable. The service received is always to the highest professional standards and... they have assisted our business in becoming more efficient and effective in all HR matters.My consultant Sam Parcell is always on hand to help answering any questions quickly and professionally and she offers vital guidance, advice and support to us.We as a company will continue to use Park City’s services for many years to come and we cannot recommend them enough!Tracy Norton-Mead, Operations Director at the DS Group.read more
Katie HerbertKatie Herbert
13:35 07 Jul 22
We have worked with Park City for almost 10 years and have built up a great professional relationship over the years. The team are so friendly and helpful, and nothing is ever too much of an ask for... any of them. Our main HR contact is Carley, who is lovely, and she is very prompt in dealing with any queries we have regarding our 100+ staff. We would highly recommend their services for any local business.read more

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