HR outsourcing can lead to increased profitability
Our client provides specialist services to the petroleum industry and has 25 employees.
The need for an outsourced HR service was identified by our client following a claim to an Employment Tribunal which was due to a failure at senior level to follow correct procedure. The experience was stressful for those involved and extremely costly in terms of the Tribunal award (plus legal costs) but crucially also in terms of senior management time. Time which resulted in lost revenue and customers.
Following discussions and on-site analysis, The People Connection identified that little or no knowledge of HR and employment law existed within the company, and they required urgent support. Employing a HR manager was not an option as this would be too costly, instead it was decided that the HR department would appoint The People Connection to provide this service to them.
The support was initially delivered by spending one full day per week on-site, which led to a full development of their systems, processes, policies, and procedures. This ultimately enabled the directors to focus on growing the business and not worry about employee related issues.
The outsourced HR service had a positive impact within the company, with any staff issues being dealt with correctly, efficiently, and legally. Through our involvement, the company saw a reduction in staff turnover and far fewer employee related issues.
The People Connection initially provided a bespoke HR service to our client in conjunction with the My HR Support programme. Over time, the need for this bespoke service reduced as line managers had been developed to handle things they could not deal with before.