When is the right time to outsource your HR?
- Nicola Charlwood
- Nov 4
- 4 min read
As your business grows, challenges can creep in; high staff turnover, low morale, unsuccessful recruitment campaigns, or managers finding that their time dominated by people issues instead of strategic work. These are often the first signs that your HR needs to evolve from ad-hoc fixes to a more structured, supportive approach.
Is it time to outsource your HR?
Here are five clear signs your business is ready to take that step and why doing so can make your life much easier.
1. You’re Unsure If You’re HR Compliant
It’s not just about “doing the right thing”, the legal and financial risks for employers are increasing.
According to the Employment Tribunal Statistics April 2024 – March 2025, four claim types made up the majority of all tribunals, accounting for 60% of claims:
Unfair dismissal – 22%
Breach of contract – 14%
Disability discrimination – 13%
Unauthorised deductions – 12%
Even mistakes can lead to costly disputes and reputational damage. Having the right HR processes in place isn’t optional anymore; those processes protect your business and your people.
Employment law changes regularly and keeping up with it can feel like a full-time job! From right-to-work checks and contracts to annual leave, sick pay, and flexible working, there is a lot to get right, and that is where we can help.
If you’re not confident your business is fully compliant, outsourcing your HR, or having an initial HR Compliance Audit can give you instant peace of mind. We provide a full compliance review and practical steps to make sure you meet all your legal obligations.
2. People Issues Are Distracting You from Running the Business
Disciplinary matters, performance concerns, or even minor disputes can quickly eat into your time and energy. Many small business owners say these are the moments they feel least confident.
A professional HR consultant can handle these sensitive issues with care, ensuring fairness, protecting your business, and maintaining team morale; so you can focus on growth rather than firefighting.
3. You’re Recruiting but Struggling to Retain Staff
Recruitment takes time and money and when new hires don’t work out, it can be frustrating and costly. If you’re seeing high turnover, it’s worth reviewing how your HR processes support staff from day one.
A holistic HR approach looks at more than just hiring; it considers your culture, onboarding, communication, and employee development. With the right structure in place, your people are more likely to stay and thrive.
4. Your HR Policies Are Outdated (or Non-existent)
Many small businesses rely on old templates or verbal agreements, but as you grow, this can create confusion and inconsistency.
Clear, modern HR policies help everyone understand how things work — from time off and performance expectations to wellbeing and equality. We can help you build (or refresh) your HR documentation, so it reflects your values, not just your legal obligations.
5. You Want to Build a Strong, Values-Led Culture
Businesses with strong values; especially those in education, sustainability, or community sectors understand that people are their biggest asset.
Outsourcing HR doesn’t just cover compliance; it’s also about aligning your people strategy with your purpose. At Holistic HR Consultants, we take the time to understand what matters to you, helping you build a workplace culture that supports wellbeing, fairness, and long-term growth.
Common People Challenges We Help Solve
If any of these sound familiar, it’s a strong sign that our outsourced HR support could make a big difference:
High staff turnover with no clear reason why people leave
De-motivated or disengaged employees affecting productivity or team spirit
Recruitment campaigns that aren’t delivering the right candidates
Managers and business owners spending too much time resolving people issues
Team members (like Office Managers or Administrators) handling HR duties without formal HR training
Difficulty keeping up with changing legislation and HR best practice
Inconsistent management styles leading to misunderstandings or grievances
Unclear progression or development paths, resulting in under-performance or frustration
These issues are common in growing businesses and they’re often completely solvable with the right HR structure, support, and strategy in place.
The Benefits of Outsourcing HR
Save time: Focus on your business, not HR admin.
Reduce risk: Stay compliant and avoid costly mistakes.
Improve engagement: Create a happier, more motivated team.
Gain confidence: Know you have expert support whenever you need it.
How Holistic HR Consultants Can Help
Our Strategic HR Review is the perfect place to start. Over two days, we’ll take an in-depth look at your HR setup — policies, contracts, recruitment, and culture — and create a practical action plan tailored to your business.
After that, our monthly HR retainer keeps you supported year-round, giving you access to friendly, professional advice whenever you need it.
And if you’d like to get to know us first, come along to our Monthly HR Clinic. It’s a relaxed, no-pressure way to chat with Nicola about any HR questions or challenges you’re facing.
Take the Next Step
If you recognise one (or more!) of these signs, it’s time to make your HR work for you, not against you.
Let’s chat about how outsourcing your HR can free up your time, reduce your stress, and help your people and your business thrive.
Comments