You probably need HR support; you just don’t need someone sitting in the office for 40 hours a week.
Running a business is complicated enough without becoming an employment law expert as well.
When you have a handful of employees, HR can feel like something you will deal with “when you’re bigger”.
Then someone goes off sick for three months.
An employee raises a grievance.
Someone’s performance isn’t good enough.
You need to change someone’s hours.
A member of staff makes a serious complaint.
Or you realise that the contracts and policies you have been using for years may no longer be fit for purpose.
Suddenly, HR isn’t something for the future.
It’s a problem you need to deal with now.
And this is where many small businesses get caught out.
The uncomfortable truth about employing people
There is no legal rule saying that a business with 10 employees must employ an HR professional.
But that does not mean you have no HR responsibilities.
From the moment you employ someone, you take on responsibilities around employment contracts, pay, working time, holiday, sickness, discrimination, flexible working, workplace policies, employee records and more.
Every employee has an employment contract, even if you have never formally put one in place. Contracts can be created through written agreements, verbal agreements and the way the employment relationship operates in practice.
You are also required to provide employees and workers with a written statement of employment particulars from the start of employment, with further information required within the relevant timeframe.
So the question isn’t really:
“Do I need HR?”
It’s:
“Am I confident that I’m managing my employees properly?”
When does a small business need HR?
There isn’t a magic number.
You don’t suddenly need HR when you employ 10, 20 or 50 people.
Some businesses need support with their first few employees. Others can manage day-to-day HR themselves for years.
The tipping point usually comes when people problems start taking your attention away from running the business.
You might need HR support if:
- You’re spending hours dealing with employee issues.
- You’re unsure what you can and cannot do as an employer.
- You have an employee who isn’t performing.
- Someone has raised a grievance or complaint.
- You need to start a disciplinary process.
- Sickness absence is becoming a problem.
- You are worried about dismissing someone.
- Employees are asking for flexible working arrangements.
- You are changing contracts, hours, pay or working arrangements.
- You are recruiting regularly and want a proper process.
- Your business is growing quickly.
- You have policies, but aren’t sure whether they are still up to date.
- You simply want someone experienced to sense-check a decision before you make it.
And perhaps the biggest warning sign:
You are Googling what to do after something has already gone wrong.
That’s usually the point at which HR support becomes much more valuable.
The cost of getting HR wrong
HR isn’t just about paperwork.
It is about protecting your business while managing people fairly and consistently.
A poorly handled employee issue can quickly become expensive.
For example, dismissing someone because their performance isn’t good enough might sound straightforward.
But what evidence do you have?
Have they been told what is expected?
Have they been given a reasonable opportunity to improve?
Have you considered whether there is an underlying issue?
Have you followed your own policies?
Have you acted consistently?
Have you considered whether discrimination or another legal issue could be involved?
These are the questions that matter.
The Acas Code of Practice on disciplinary and grievance procedures is clear that employers should follow a fair process, including appropriate investigation, allowing the employee an opportunity to respond and providing a right of appeal. The size of the business does not remove those responsibilities.
And there is a reason this matters.
Acas estimates that formal disciplinary and grievance procedures cost UK employers £2.36 billion every year, with informal resolution estimated to cost around 10 times less.
The lesson for small businesses isn’t that every employee issue needs a formal HR process.
It’s almost the opposite.
Deal with problems early, get the right advice and don’t let a manageable issue become an expensive one.
What does an HR consultant actually do?
An HR consultant gives you access to professional HR expertise without necessarily having to employ a full-time HR manager.
That might mean being involved every week.
Or it might mean having someone you can call when something difficult comes up.
A good HR consultant can help you with:
Employee relations
Disciplinary, grievance, performance, conduct and employee relations issues.
Absence management
From everyday sickness absence and return-to-work conversations through to longer-term absence and more complex cases.
Contracts and employment documentation
Reviewing contracts, written statements, handbooks and other employment documentation.
Policies
Making sure your HR policies are relevant, practical and kept under review as employment requirements change.
Recruitment and onboarding
Helping you build sensible recruitment, onboarding and employee processes.
HR advice
Giving business owners and managers somewhere to turn before making a decision that could create unnecessary risk.
Compliance
Reviewing your current HR arrangements and identifying areas that need attention.
Training
Helping managers understand how to manage people properly and confidently.
The point isn’t to bury your business in paperwork.
It’s to give you confidence that when something happens, you know what to do next.
Do I need an HR consultant if I only have 5 employees?
Possibly.
But you probably don’t need an HR Manager sitting in the office five days a week.
For many small businesses, that would be unnecessary.
Outsourced HR gives you another option.
You can access professional HR support when you need it, without the cost and commitment of employing a full-time HR department.
That might be:
“Can I do this?”
“What should I say to this employee?”
“Can we change their hours?”
“How do I deal with this absence?”
“We need to start a disciplinary process — what do we do?”
“Our policies haven’t been updated for a while. Can someone review them?”
Sometimes you need an answer.
Sometimes you need someone to take the problem off your desk.
Sometimes you need both.
How much does outsourced HR cost?
There isn’t a one-size-fits-all price.
The cost depends on the size of your business, the level of support you need and whether you require ongoing advice or help with a specific project.
Some businesses use outsourced HR on a monthly basis.
Others use HR consultants for individual pieces of work, such as:
- An HR compliance review
- Updating contracts and policies
- A disciplinary or grievance
- Absence management
- Recruitment support
- Manager training
- A restructure
- A specific HR project
This can make outsourced HR a practical alternative to employing a full-time HR professional.
You pay for the support your business actually needs.
HR support that works around your business
At Adept HR Services, we work with businesses that need professional HR support without the need for a full internal HR department.
Our approach is straightforward.
Practical HR. Clear advice. No unnecessary jargon.
We can provide ongoing support or help with a specific issue, depending on what your business needs.
Our support includes:
- Day-to-day HR advice
- Employment contracts and documentation
- HR policies and handbooks
- Disciplinary and grievance support
- Employee investigations
- Absence and attendance management
- Performance management
- Recruitment and onboarding
- HR compliance health checks
- Manager training
- Employment documentation
- CQC and care-sector HR support
- Ongoing outsourced HR support
We also offer a personalised HR policy library, giving your business a central collection of relevant policies and templates that are reviewed and tailored to your organisation.
You don’t need to build an HR department just because you have employees.
But you do need to take your HR responsibilities seriously.
Because when everything is going well, HR can feel like an administrative task.
When something goes wrong, it can become one of the biggest risks to your business.
Don’t wait for the HR problem to arrive.
Get the right support in place before you need it.