Human Resources / Why Do Small Businesses Hire Firms to Provide HR Advisory Services?

Why Do Small Businesses Hire Firms to Provide HR Advisory Services?


The foundation of any good company, whether a big multinational corporation or a small business, is only as strong as the people who work there. From the CEO to entry level positions, every employee plays an important role in keeping the company running smoothly.

But there’s one department that is absolutely essential to any business: HR. Human resources are responsible for a wide variety of tasks, from recruitment and onboarding to managing benefits and compensation. In other words, HR is responsible for making sure that the company’s most important asset—its employees—are happy, healthy, and productive.

Small businesses often choose to outsource human resources to a firm that provides HR advisory services. There are many reasons why a business would have an outsourced human resources department, but the three most common ones are cost, time, and knowledge. HR consultants have the expertise and knowledge to help your business with a variety of HR-related tasks, which takes the pressure off of you and allows you to focus on what you do best – running your business.

What Are HR Advisory Services?

HR advisory services can cover a wide range of topics, from employee engagement to compliance and benefit administration. Here are some of the most common HR-related tasks that businesses outsource to HR consultants. Outsourced human resources provide small businesses with access to specialized expertise and knowledge, often unavailable in-house. By leveraging outsourced human resources, companies can efficiently manage employee relations, payroll, and compliance issues without the overhead of a full-time HR department. The strategic use of outsourced human resources allows businesses to focus on core operations while ensuring that their HR needs are met professionally and efficiently.

Improve HR Management Systems

One of the most important roles of HR is to develop and maintain employee records. This includes everything from tracking employee absences to managing payroll information. HR advisory services can help you create a system that is efficient and compliant with all relevant laws and regulations. For instance, they can help you develop an employee handbook that outlines your company’s policies and procedures.

Define HR Policies and Strategies

HR policies and strategies should be aligned with your company’s overall business goals. At BlueStone, our HR consultants can help you develop HR policies and procedures that are tailored to your business. For example, they can help you create a recruitment strategy that attracts top talent to your company.

Adopt Multi-State Practices

If your company does business in multiple states, it’s important to comply with the different laws and regulations in each jurisdiction. HR consultants can help you navigate the complexities of international HR and ensure that your company is compliant with all relevant laws. This also includes developing policies for expatriate employees, such as those who are working in another country on a work visa.

Implement 360 Performance Review System

One of the most important HR functions is performance management. HR advisory services can help you develop and implement a 360 performance review system. This type of system gives employees the opportunity to receive feedback from their managers, peers, and direct reports.

Improve Payroll Systems

Another HR function that is essential to any business is payroll. Many companies are using outdated or inefficient payroll systems and could use a refresh. In addition to finding new and better ways to pay employees, HR consultants can help you streamline your payroll process and ensure that your employees are paid accurately and on time. They can also help you develop a system for tracking employee vacation days and other types of leave.

Develop Reward Strategies

Money isn’t the only way to enrich employees–HR consultants can also help a business develop strategies to reward employees in lots of interesting ways. This includes creating bonus programs, developing employee recognition programs, and offering other types of incentives.

Why Should a Small Business Use HR Advisory Services?

Small businesses often have limited resources, including human resources expertise. As the business grows, it becomes increasingly important to have a solid HR infrastructure in place to manage and support employees. This is where an outsourced human resources department can be incredibly beneficial.

A few reasons a small business should consider hiring an HR advisory service include:

  1. Access to expertise: HR advisory services provide access to a team of HR experts who can help small businesses navigate the complex world of employment law, compliance, and best practices. This can save time and money in the long run by avoiding costly mistakes.
  2. Customized solutions: HR advisory services can tailor their services to meet the specific needs of each small business. This can include everything from creating HR policies and procedures to providing training and development opportunities for employees.
  3. Cost-effective: Hiring a full-time HR professional can be expensive for small businesses, especially if they only require HR services on a part-time basis. Outsourced human resources can offer flexible solutions that can be customized to fit any budget.
  4. Risk management: Small businesses may face legal and regulatory risks related to HR, such as discrimination claims or compliance violations. HR advisory services can help small businesses minimize these risks by ensuring that they are following best practices and complying with all applicable laws and regulations.
  5. Employee retention: A strong HR infrastructure can help small businesses attract and retain top talent. Outsourced human resources can help small businesses develop strategies to engage employees, provide competitive compensation and benefits, and create a positive work culture.

HR Advisory Services and You

If you are still unsure if HR advisory services are a good option for your small business, please reach out for a free consultation with one of our human resources experts.

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