Outsourcing the HR function in the recruitment sector

The recruitment sector is a provider of outsourcing services but should recruiters consider partnering or fully outsourcing their HR function?

Recruiters are only as good as their people and outsourcing HR may not just be a question of economics, it can mitigate risk and allow a recruiter’s management to focus on the development of the business. 

After all, poor HR decisions and processes can be time consuming and costly.

HR is often an additional responsibility, on top of the day job, for non-HR specialists. It can lead to business risk and reactive rather than strategic decisions being made as well as issues, such as under performance, increase of staff churn and poor morale issues. 

Also, remaining compliant with everchanging employment legislation can be a minefield for a recruiter, including maintaining fit-for-purpose employee handbooks, offer letters and contracts, managing personal data in line with GDPR, reflecting employment tribunal rulings (e.g. commission and overtime being part of holiday pay) and complying with the Equality Act, amongst other things.

Whether a fully managed HR function or access to expertise when needed, outsourcing gives recruitment companies of all sizes access to qualified and experienced HR professionals who know what they’re doing and will be able to deal with a vast range of personnel matters quickly and effectively. In addition, they can bring impartiality to sometimes highly emotive situations, such as redundancies, grievances, disciplinaries or dismissals.

Partnering with an HR provider could therefore reduce cost, provide peace of mind and help productivity.

For more information, please get in touch with Kerri Constable or your usual RSM contact.