Can outsourcing the HR and training function help SMEs in tough economic times? With full access to expert advice and all the relevant legal and procedural documents, plus bulk discounts and better access to a wider range of training courses, more and more organisations are concluding that it can. The decision to outsource a business function versus keep it in house needs careful consideration; ultimately it is a business decision which balances costs savings, administrative hassle, convenience and control. Recognising this, more organisations are offering highly focused services to businesses, frequently via the internet, with a view to exceeding the capabilities of an in-house alternative at a lower cost.
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17th December 2008 Outsourcing Provides Antidote to Credit Crunch A charity is urging businesses and organisations to considering outsourcing their human resources departments to save costs during the credit crunch. Surrey Alcohol and Drugs Advisory Service (SADAS) has saved ?40,000 a year after taking the step to hire Right Hand HR to run its human resources. The organisation believes outsourcing HR is a sustainable way for businesses to reduce their budgets during the difficult financial climate and to avoid large-scale redundancies. SADAS, based in Surrey supports those with drug and alcohol problems. The organisation brought in human resources consultancy Right Hand HR in January 2008 following identification of areas within departments where outlay could be appropriately reduced. The charity has 50 employees and 40 volunteers. It wanted to reduce costs but at the same time increase its level of support to staff and volunteers. Now it benefits from a full HR team with expertise in employment and training providing support 52 weeks of the year. It has made savings which are the equivalent to hiring a full time front line worker. Director of RHHR Sam Colquhoun said: ?We have seen the number of enquiries increase significantly from businesses that currently have an internal HR department and are looking for sustainable ways to significantly reduce their costs, but still maintain professional HR support. ?During the past month enquiries of this nature have accounted for 40% of all new business calls. The management team and trustees at SADAS saw the opportunity early in 2008, and so have had the benefit of their outsourced HR function throughout the year. She added: ?Organisations are starting to look at long term planning and are looking for sustainable ways to cut their budgets. They are looking for more than a quick fix and want to make sure the level of service they provide stays high.?
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North East businesswoman Sam Colquhoun has won the regional final of the National Business Awards Entrepreneur of the Year for the North East. The managing director of Newcastle-based Right Hand HR Ltd, Sam's success provides further evidence of the impact that female entrepreneurs are having in the world of business. Prior to setting up Right Hand HR, Sam?s experience was gained in multi-nationals within the automotive, pharmaceutical and FMCG sectors. While at Bristol Myers Squibb and Procter & Gamble, her role was human resources director with responsibilities across Europe, the Middle East and Africa. Sponsored by Orange, the National Business Awards are judged independently by industry experts and funded by some of the UK's most forward-thinking businesses. They are acknowledged by The Chancellor of the Exchequer as the UK's ?Business Oscars?. The aim of the National Business Awards is to reward and recognise excellence, best practice and innovation throughout the UK business community. The Entrepreneur of the Year award sponsored by Credit Suisse is given to the individual who can best demonstrate a clear identification of a market opportunity, innovation, growth and strong financial performance in terms of both sales and profit growth. The beaten finalists in the North East were Amanda Pearce (diva creative ltd), Rae McGlone (National Locums Ltd) and Andrew Ainge (MetaFX Technology Ltd). Sam netted the top prize on the back of her work with Right Hand HR, a company which provides a comprehensive professional human resources service on an outsourced basis to organisations of varying size across the UK. In just four years Right Hand HR has grown rapidly established a client list that includes telecoms, pharmaceutical, FMCG, retail, media, personal care, and healthcare companies and, working with these companies, Sam and the team at Right Hand HR have introduced many innovative approaches to human resources management.
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Right Hand HR, a Newcastle based HR outsourcing company has won the coveted Entrepreneur of the Year prize at the annual North East Chamber of Commerce Awards. This was only the second year of the Chamber Awards, which was launched in 2004 by the British Chambers of Commerce in 2004 to recognise and celebrate business excellence through the successes and achievements of its Accredited Chambers of Commerce and their members. The North East regional awards were held at the prestigious Beamish Hall in County Durham, with over 50 regional businesses in attendance. Managing Director, Sam Colquhoun, was nominated for the award on the back of her work with Right Hand HR, a company which provides outsourced HR and consultancy to organisations of varying size and sectors across the UK. The award nominations are judged by a panel of independent judges. This is the award for an individual who has been instrumental in the success of a business. The judging panel take into consideration the overall business performance of the business over the last three years and their vision for the future of the business. Right Hand HR will now go on to compete for the overall national title and a ?25,000 prize at the national final in London on November 24th 2005.
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Sam Colquhoun of North East HR specialists Right Hand Human Resources looks at some of the issues involved. Let's begin by exploding a couple of myths about outsourcing in the arena of Human Resources. The first suggests outsourcing is a business strategy that companies only turn to when there's an economic downturn. And the second says outsourcing is a tool that remains in the domain of large organisations as opposed to SME's. In recent years it has been conclusively proved that outsourcing can help businesses of all sizes to maintain or increase their competitive edge ? regardless of economic conditions - which explains its continued growth in popularity. The fact is that companies have certain core competencies, certain specialities and the question that business owners everywhere have to ask themselves is ?if I started my business from scratch today, would I be doing this activity in-house?? But what about the SME? Can outsourcing really bring real benefits to smaller, developing businesses. The short answer to this question is yes. Smaller organisations everywhere are becoming ever more sophisticated with the advent of the Internet and by virtue of the new economic business model. Hence at RHHR we have found that smaller organisations require many of the same robust features and capabilities as do their larger counterparts. Indeed, in the area of HR, most organisations are offering similar benefit packages and are subject to the same legislative and taxation requirements. Thus the service offering for both audiences is remarkably similar. There are a variety of indications that a company will benefit by outsourcing. The specific reasons vary from company to company. Speak to our clients and you?ll find many different outsourcing goals. Some may emphasise flexibility and speed-to-market, others are seeking cost savings or capital cost avoidance or brand protection.
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