What is a HR Retainer and How it Could Help Save your Business Money
Unfortunately, many businesses are so focussed on revenue and customer retention they forget the important role people play in their business and the need for good HR support. Small businesses in particular often maintain that they can’t justify the cost of employing a HR person and often have a PA or Finance person managing HR activities.
This is far from an ideal scenario. Ignoring HR or putting it on the back burner is ill-advised, it can have serious and long-term implications for you, your employees and your business. One approach to HR that we’ve seen become more popular in recent years is the use of a HR retainer. Let’s take a closer look at what a HR retainer is and then discuss how it can help your business save money.
What is a HR Retainer?
The traditional idea of HR is a dedicated department within a business or company. While this is certainly still the case among many major brands, it is by no means the only way of accessing and utilising HR services. Smaller companies may not have the finances or the resources to establish, staff, and maintain an effective and functioning HR department. For these businesses, outsourcing HR can be a far more affordable and practical approach.
With a HR retainer, businesses can access HR services as and when needed. Rather than setting up a dedicated department, businesses can implement sound HR practices and policies using an external, expert provider. A HR retainer is a type of monthly rolling contract that can be reviewed and updated to suit the changing needs of your business. Let’s discuss how a HR retainer can help your business save money.
Tailored HR Services
A HR retainer can be fully customised and tailored to suit your business. You can choose to have the HR team come into your office on specific days of the week, or you can opt for unlimited access to a HR helpline. Modern businesses must be flexible and adaptable to changing markets and consumer behaviour. With a HR retainer, you can ensure your HR services can adapt and scale with your business in an efficient and cost-effective way.
Key Advice and Guidance
HR Consultancy businesses are made up of highly knowledgeable, expert staff with years of industry experience. By outsourcing your HR to such a firm, your business will benefit enormously from the advice and guidance they can provide.
Whether you are reviewing salaries and benefit programmes, building the culture, restructuring your business for future growth, or carrying out redundancies and exit interviews, having a HR retainer in place will give you a trusted and reliable partner to ensure all procedures are handled correctly.
Keep up to Date With Employment Law
Employment law and regulations are in place to safeguard employees and to ensure they are not exploited by their employers. As a business owner, it is absolutely vital that you are operating within the confines of the law. Failure to do so can see you face financial penalties or legal action, which could have serious long-term consequences for your business.
Employment law changes frequently. For the busy modern business owner, it can be difficult to keep up. With a HR retainer, an expert HR team will regularly review your employee handbook and business practices to ensure you are adhering to the latest regulatory requirements.
Attract and Retain Talent
A business is only as good as its employees. Without the industry’s top talent on your side, you’ll never be able to set yourself apart from your competitors and establish your business as a true sector leader. A HR team will help you develop a competitive salary and benefits package, as well as establish clear and defined career progression paths to help you attract the very best candidates.
Flexible work practices are increasingly important, with a Harvard Business Review study revealing that 88% of workers look for flexible work options when job-hunting. By working with a HR team, you can implement modern policies such as flexible working to make your business an attractive option for prospective candidates and give you an edge over competitors.
Retaining employees is just as important as attracting them. With a HR team, you can devise employee engagement strategies to guarantee that your team feels satisfied and motivated. Furthermore, a HR team can deal with grievance management issues, working to settle disputes in a sensitive manner to prevent further disruption to your employees and your business.
Constantly hiring and onboarding new staff can be a laborious process that significantly drains time and resources. A HR retainer can give your business the help it needs to bring in the best talent and retain them for years to come.
As a business owner, having a HR team in place is critical. While your business may not have the resources available to establish a dedicated in-house HR department, that doesn’t mean it should be forgotten about. Contact a HR Consultancy and utilise an HR retainer to help your business become an employer of choice and ultimately save your business money.