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HR Services for Small Business: What to Consider

21 Nov 2023

When starting your business there are many things you need to consider, and one of those things is whether you need an accountant or solicitor. (In short, the answer is yes to both). However, working with many SMEs over the years we’ve found a surprising number of directors who’ve never considered HR services for their small business.

Why you need HR services

A lot of small business owners see HR as simply hiring staff and making sure they’re happy. That’s part of it, but it’s far from the full picture.

There are many intricacies to human resources that small business owners can miss out on, leading to high staff turnover over even worse employment tribunals. By outsourcing your HR you can relax knowing there’s always an expert on hand to support you, saving you time and money.

Fact: Employees can take you to a tribunal for free if you have acted unlawfully towards them (knowingly or unknowingly). (source:

Having an employee take you to a tribunal has multiple impacts on your business. If they win, you’ll likely have to pay compensation which needs to be considered.

Also, think about the reputational damage this could cause, not just in your search for new staff but also in how you find customers.

In addition to protecting yourself, there are many more benefits to outsourcing your HR, such as:

  • Lower costs with higher efficiency (more bang for your buck).
  • Access to expert opinions and advanced HR IT systems.
  • Access to a 24/7 service.
  • A lot easier to scale up or down quickly.

But what are the best HR services for small businesses?

HR Services for Small Business

In this section of the blog, we’ll break down the different HR services you should consider when seeking to outsource.

HR Helpline

Some HR helpline services come with 24/7 access to an expert opinion on all HR matters. However, it’s not just a recommendation, some services support you with the implementation of advice too.

A few specialist providers will also give you access to call logs so you can keep tabs on your previously asked questions saved with their answers for future reference.

Some firms will solely rely on email, which comparatively offers less security and organisation, meaning it can be difficult to keep track of previous conversations.

Employment law

Employment law is the basis for your policies and procedures and is led by two things, Acts and Regulations, and Case Law, which often sets precedents off the back of Employment Tribunal cases. Some of the Acts and Regulations which dictate modern working environments include:

  • National Minimum Wage Act 1998
  • Holidays with Pay Act 1938
  • The Equality Act 2010
  • Employment Rights Act 1996
  • The Working Time Regulations 1998
  • Health and Safety at Work etc. Act 1974

HR Policies and Procedures

HR policies and procedures are what make up the core of your business, they let you and your employees know how they should be conducting themselves while working. HR policies and procedures can also provide guidelines on what to do if employees go against these ‘rules’.

Your HR policy is your safety net against employment tribunals, with clear guidelines set out it’ll be a lot easier to avoid any mix-ups or miscommunication.

A good HR policy helps you set a good standard. It’s vital to create a workforce that’s fair and equal for all and sound HR policies do that.

Employee Handbook 

A company’s employee handbook provides an overview of its HR policies and procedures in one place.

Your employee handbook is how you get employees familiar with the basics, such as rules, expectations and HR policies. Your employee handbook will also be your opportunity to let employees know what they can expect from you.

If your employees have any questions regarding their employment, from data security to maternity leave policy, the employee handbook is there to answer those questions.

HR Consultancy Services

A consultancy service usually involves sitting down with a consultant to work through your business and its current HR situation. An HR consultation is there to see if any issues need fixing as well as reviewing your current hiring strategies.  They’re often used on an Ad Hoc when a business needs assistance, but options also exist for more regular support where consultants are used on a retained basis.

Wrapping up

All in all, HR is a vital service that is unfortunately ignored by many. However, we hope in this blog we’ve explained its importance and dived into why it’s a necessity for businesses of all shapes and sizes.

If you’re looking for some expert advice with all your HR services, come speak to our new HR team!

Or if you’re simply looking to read more about HR, check out our ultimate guide.