The talk everywhere is about cutting costs. Concerns about a ‘double-dip’ recession; worries about the impact of massive cutbacks in the public sector, rising costs of many raw materials, or the never ending quest to improve profitability by ‘running lean’ have prompted the talk and in many cases the actions. With expected UK growth to be low over the next year or two, competition will be ferocious. The strongest will normally survive but not by standing still. Change will be ever present as such organisations seek to improve quality, productivity and customer service.
Human Resources departments where they exist or others where they don’t, will be wrestling with the difficult decisions of where to make changes and cut costs, how to do it cost effectively and with minimum disruption, and how to motivate the employees retained in the business to achieve even higher levels of productivity. In some instances whole human resource departments have been made redundant for being seen as an expense that can no longer be justified or carried.
Those organisations without HR departments or who have let them go are increasingly turning to outsourcing their HR needs and for very good reasons, chiefly:
• They only pay when they need advice or action and hence costs are reduced
• They get experts who have faced the problem many times before and often have the answers on tap
• Advice given is independent and not coloured by ‘in-house’ thinking or prejudice
• Managers are freer to get on and do what they are best at doing as they delegate some activities to the outsourced HR Consultant
• HR Consultancies usually provide and update employment policies required by law as part of their retained service so employers are always compliant with employment law
• Strategic input to the business usually adds considerable value.
• HR Consultancies have a good record of preventing Employment Tribunal cases where they are retained.
All businesses large or small have to address their staff issues. The more successful they are the more committed, motivated and productive staff will become and the business will reap the benefits. In many respects, in these tough times, it is the people that provide the organisation with competitive advantage. If employers have not realised that they need to talk to a good Human Resources Consultancy such as HR+.
Dr Hugh Billot, MD HR+ Limited
HR+ is a leading HR consultancy:
for advice please call 01233 772431.
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