Shropshire firms urged to undertake New Year HR review

With new legislation being introduced including that related to tribunal procedures and unfair dismissal claims, Shropshire-based Triangle HR is urging businesses to consider their current provision and how their reliance solely on in-house resources could prove to be an expensive mistake.

Triangle HR Founder and Director, Justine Vaughan, explained: “The new laws coming into force will mark a real turning point in the approach that local businesses will be required to take. Having the knowledge available to ensure that they are able to comply with the changes is vital, as without it, employers could see themselves being caught out and faced with costly and challenging tribunal claims.

“With figures highlighting a 44% rise in claims to employment tribunals across the UK in 2010-11, from 2008-09, it is imperative that businesses have the procedures in place to either prevent claims in the first place, or deal with them should they arise. External consultancies offer high level expertise that employers may not be able to find or afford in-house, and see issues such as tribunals on a day-to-day basis so are hugely experienced in handling them.

“An increasing number of businesses across the region are choosing to outsource their HR departments for this very reason, as well as the fact that for many it’s also a genuine cost cutting measure. A typical Shropshire company with around 50 employees for example, may have their own in-house HR Manager and you’d expect them to be on around £30,000 per annum, but by the time you factor in additional costs related to employment such as a car, benefits package, holidays and training, this could be nearer £45,000 per year. Yet the same company can access HR Director-level expertise, as they need, from an outsourced company for just £2,500 or £3,000 per year. That’s just a staggering 5.5% of the cost of keeping that skill in-house.”