HR Consultancy For Small Businesses | What Can They Actually Do?

HR Consultancy For Small Businesses

For a small business, HR can quickly become another responsibility on an already busy list. An HR consultancy can be particularly useful for small businesses when they need to deal with an employee grievance, manage poor performance, review a contract or handle an absence issue, without having someone in the business who specialises in HR.

Instead of employing a full-time HR manager, a small business can access professionals when it needs advice, practical guidance or help with a more complicated situation. Our HR consultancy services give small and growing businesses access to experienced HR professionals without the cost of building a full in-house HR team.

But what does an HR consultant actually do, and when is it worth bringing one into your business?

Help You Get The Basics Right

Good HR starts with having the right foundations in place. Employment contracts, policies, procedures and employee records should reflect how your business operates and the legal requirements that apply to it. GOV.UK guidance for employers highlights the importance of understanding employment status, providing written employment particulars and reviewing arrangements when the working relationship changes. An HR consultant can review what you already have, identify gaps and help you put clearer processes in place, giving you a stronger foundation as your business grows and your workforce changes.

This can also prevent a common small business problem: only thinking about HR when something goes wrong. Putting sensible processes in place beforehand makes it easier to deal with issues when they arise.

Keep Up With Employment Law

Employment law can be difficult to keep track of when you’re also responsible for sales, finances, customers and the day-to-day running of your business. An HR consultant can explain how changes in employment legislation affect your organisation and what you need to do in response. This might involve updating policies, reviewing contracts or advising you on how to handle a particular situation.

Keeping up with changes also means looking beyond individual pieces of legislation. Your employment documents, workplace procedures and approach to managing employees should continue to reflect your current obligations. Having professional advice available can help you understand what has changed and what action, if any, your business needs to take.

Deal With Difficult Employee Situations

Some HR matters are straightforward. Others are much harder to navigate, particularly when they involve poor performance, repeated absence, misconduct, grievances or workplace disputes. These situations can involve several stages, detailed records and difficult conversations, so taking the wrong approach can make an already challenging situation more difficult.

An HR consultant can advise you on how to approach the issue and keep the process fair and consistent. Where a case becomes complex, Employee Relations Services can provide specialist support with disciplinary cases, grievances, investigations, absence and poor performance. Experienced advice can be particularly valuable when you’re dealing with an issue you haven’t encountered before.

Give Managers More Confidence

As a small business grows, HR responsibilities often fall to managers who already have a full workload. They may need to address performance concerns, manage absence, handle difficult conversations or respond to employee questions without having an HR professional in the business to turn to.

An HR consultant can provide guidance when those situations arise. Sometimes that might mean answering a question before a conversation takes place. In other cases, it could involve supporting a formal process from beginning to end. This gives managers a clearer framework to work within while allowing them to focus on managing their teams rather than trying to work out the appropriate HR process themselves.

Improve Recruitment And Onboarding

HR consultancy isn’t only about dealing with problems. An HR consultant can also help you create a more consistent approach to recruitment and onboarding. This can include employment documentation, contracts, recruitment processes and the information new employees receive when they join.

Getting these areas right early can make things easier as the business grows. Clear processes also help ensure employees receive consistent information and understand what the organisation expects from them from the beginning.

Provide Ongoing Support Without An In-House HR Team

Not every small business needs a full-time HR manager. HR needs can vary from month to month, making outsourced support practical. You can access experienced professionals without the salary, recruitment, training and employment costs of building an in-house HR function.

Monthly HR support gives small and medium-sized businesses ongoing access to HR professionals for a fixed monthly fee. Support can cover everyday questions as well as more involved matters.

An ongoing arrangement also gives you a consistent point of contact who gets to know your business. You don’t have to explain the background from scratch each time you need advice, and the level of support can change as your business and workforce develop.

When Should Small Businesses Use An HR Consultancy?

There’s no set number of employees you need before HR consultancy becomes worthwhile. The right time will depend on your business, your level of internal knowledge and the people challenges you’re facing.

It may be worth considering professional HR support if:

  • You don’t have anyone with dedicated HR expertise
  • You’re unsure whether your HR processes meet current requirements
  • You’re dealing with a disciplinary, grievance, absence or performance issue
  • Managers need help handling people-related situations
  • Your business is growing and your existing processes are becoming harder to manage
  • You want to review your contracts, policies or employee documentation
  • You need HR expertise but don’t require a full-time HR manager

The level of support can also change over time. You might initially need advice on a single issue before deciding that ongoing support would be more useful as your workforce grows.

Is An HR Consultancy Worth It For Small Businesses?

The point at which HR support becomes worthwhile is often quite simple: HR starts taking up time that you should be spending elsewhere.

That doesn’t necessarily mean you need to employ an HR manager. You may just need reliable HR expertise available when you need it.

Our HR consultancy services give small businesses access to experienced HR professionals for one-off issues or ongoing support. You get the HR help your business needs, without having to build an in-house HR team.

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