2nd June 2010 - Pay As You Go HR Service Taps Into A Trend

An HR specialist is tapping into a growing market with the launch of a new, ‘pay as you go’ support service, as figures show that 64% of businesses find it more cost effective to outsource elements of their HR function.

The new three tier ‘pay as you go’ service is the brainchild of Mark Ions, managing director of North of England HR specialists Exclusive Human Resources. It offers businesses a choice of various levels of support, with a monthly starting price of £25 - less than a typical small business spends on stationery and sundries.

“The recession has really focused owner-managers on what they can do in-house, and which elements of their business are more cost-effective to contract out to a specialist. Industry polls show that a third of businesses are more likely to outsource now than they were two years ago,” said Mark.

“Small business owners have their hands full trying to run a successful business, as well as making sure they comply with employment rights and constantly changing legislation.

“It’s very common for people to sideline HR procedures until they find themselves suffering from low morale and high staff turnover, or are faced with a tribunal. But by then it can be too late - the financial consequences of getting it wrong can be serious enough to close a business down.

“It’s not just a matter of avoiding litigation either. Structured HR support can actually help businesses increase profitability by effectively managing and inspiring the asset that will take their businesses forward once the economy picks up - their people.

“We're offering clients a choice of levels of support so they have all the tools they need to nurture and develop their staff, and stay compliant. The fee structure is designed to help businesses with budgeting, and means they only pay for what they need, when they need it.”

One of the first businesses to sign up to the service is bespoke furniture company PMH Interiors, which employs a team of five people and has some ambitious growth plans. Director Michelle Harrison said: “We are in our fourth year of business and to achieve our next stage of growth we need professional HR support.

“This pay as you go, three-tier service is ideal for our needs. My background as a manager in the public and private sector has taught me the sort of healthy company culture I want to encourage, one where there is mutual respect, everyone feels valued and we are all pulling together towards the same aims.

“Exclusive’s experts are helping us to get the basic HR framework in place so that we fully support and develop our people, and at the same time avoid any HR problems arising. And it’s very reassuring to know that we have professional support in place so if any issues do come up, we have expert help on hand to deal with them.”