Partner Article

Rethinking HR – why outsourcing might be the answer for SMEs: Jackson Hogg

Jackson Hogg
www.jacksonhogg.com
info@jacksonhogg.com

As people challenges become more complex, the law gets tougher and resources stretch, outsourcing HR is becoming a smarter, more flexible option for SMEs. Here, Lauren Bathan, director of HR Partnership at STEM recruitment and HR services specialist Jackson Hogg, speaks to N magazine about why borrowing expertise could provide an edge for North East businesses.

“SMEs are being squeezed in all directions – it’s a perfect storm.

“For many SMEs, the issue is that although they are small, they still have a workforce with all the challenges that brings, but they are not big enough to have the resources that can absorb those challenges.”

That assessment from Lauren Bathan, director of HR Partnership at Jackson Hogg, goes straight to the heart of a decision many SMEs are facing – whether to keep managing HR in-house or bring in specialist support that can do more while easing strain on the business.

Best known for its specialist STEM recruitment, Jackson Hogg has evolved into a broader recruitment and HR services business, with offices in Newcastle, Teesside and Leeds.

Its HR Partnership service has grown steadily over seven years, building a loyal customer base that accesses expert support without the cost and commitment of an internal people function.

Lauren says: “Clients come to us because Jackson Hogg is their trusted partner and we can offer technical expertise across different parts of our business.

“Whether you employ one person or 1000, you are still a workplace and an employer, and there are certain responsibilities and requirements that go with that.

“We know HR in some SMEs is an add-on to the responsibilities of someone in finance, legal or operations, and they just do their best.

“But in the modern workplace, that just doesn’t cut it anymore; the landscape is too complex for informal HR functions.”

With employment law evolving, expectations rising and employees better informed than ever, the gap between informal HR and best practice is widening.

Against that backdrop, SMEs have a decision to make – invest in an in-house HR professional or outsource and access a broader set of expertise through a partner.

Lauren says: “Navigating people challenges will only get more difficult and only bring greater risks, be they financial, the time lost managing issues and reputationally.

“HR is a technical discipline, but most places will recruit, rather than borrow an expert.

“Through our HR Partnership service, clients can access a team with a range of specialisms and work with the right person in the right situation.”

Doing so also tackles one of the biggest decisions facing an SME hiring in-house.

Lauren says: “You need to decide whether your HR person will provide the more admin-based side of HR services, or whether they’ll have a more strategic role.

“Either way, there will likely be a gap at the operational level or in longer-term workforce planning.

“Our service means both aspects are covered, and done so in a way that is as close to having an in-house HR expert as possible.”

Outsourcing to Jackson Hogg also means accessing a team with a ready-made network of experts to lean on, as well as ongoing training to keep them up to date with changing laws and regulations.

Lauren says: “A partnership with Jackson Hogg means an SME can use specialists without having to recruit, train or retain an HR person or have that function in their overheads.

“HR continues to go through an evolution from the old ideas of ‘personnel’ to now being a strategic people function.

“Some businesses look at HR from a compliance point of view and might take a more light touch approach, while others want someone to give them a future focus.

“We can be all of those things for an SME.

“For many of our clients, the support we provide effectively means having their own in-house HR person, supplied by Jackson Hogg.

“Others engage with our HR services on projects – there is freedom to choose and build a partnership that suits their needs and budget.”

However, Lauren acknowledges that outsourcing a key function like HR can feel like a big step for some organisations.

She says: “It’s a leap of faith.

“It’s a big thing to bring in someone from the outside and give them access to all the most sensitive parts of your business.

“It feels like a risk, but the bigger risk is not to engage with HR in the first place.”

She adds: “I have empathy for organisations that think, because they’ve never been caught up in a dispute with an employee, that they must be doing something right.

“In truth, it’s more likely than ever that something is coming down the track.”

For Lauren and Jackson Hogg, the answer to that leap of faith lies in relationships built on trust and shared understanding.

“We know HR in some SMEs is an add-on to the responsibilities of someone in finance, legal or operations, and they just do their best but in the modern workplace, that just doesn’t cut it anymore; the landscape is too complex for informal HR functions”

She says: “We’re very big on values at Jackson Hogg – we want to work with customers as partners.

“The best HR people are the ones who can demonstrate genuine business acumen – they understand how the business operates and what that means for its people.

“Jackson Hogg’s USP is bespoke partnerships; it is people at the end of the phone when you need them.”

And in the current climate, such support is vital – no matter the size of the business.

Lauren adds: “We want to encourage business owners to explore their options and make sure they have the right HR support behind them when they have a people problem.

“For some, working with our HR Partnership service might be a chance to be proactive and create people opportunities.

“I want to help SMEs explore the alternatives and consider whether outsourcing could improve and protect their business.”

To find out more about Jackson Hogg and its HR Partnership provision, visit the website or contact the email address at the top of this article.

This was posted in Bdaily's Members' News section by N Magazine .