As your business grows, there comes a point where HR can't be squeezed in around everything else. Contracts, policies, recruitment, employee issues and keeping up with employment law all take time and expertise. So should you bring in outside support, or hire someone in-house? Here's how to decide.
Option 1: Outsourced HR
An external HR consultant or partner supports your business as and when you need it, whether that's a single project, a regular number of days each month, or interim cover.
The benefits:
- Flexible cost: you only pay for the support you need, with no employment costs.
- Broad expertise: experience gained across many businesses, sectors and situations.
- Up to date: a good HR partner keeps on top of changing employment law, so you don't have to.
- Scalable: support can increase during busy periods, such as a restructure or rapid growth, and reduce when things settle.
- An objective view: an outside perspective can be invaluable in sensitive situations.
The drawbacks:
- They're not physically in the business every day, so clear communication matters.
- It takes a little time at the start for them to learn how your business works.
Option 2: Hiring in-house
An in-house HR person or team works for your business full-time or part-time, as an employee.
The benefits:
- They're on hand every day and get to know your people and culture closely.
- They can build relationships and spot issues early.
- They're fully focused on your business.
The drawbacks:
- It's a significant fixed cost: salary, employer's National Insurance, pension, holiday, training and recruitment.
- One person rarely has deep expertise in every area, from recruitment and employee relations to reward and change management.
- Cover can be a problem when they're on holiday, off sick or leave the business.
Questions to help you decide
- How many people do you employ? Many smaller businesses don't yet have enough HR work to justify a full-time role.
- What kind of support do you need? Day-to-day admin, or expert advice on more complex issues?
- Is a big change coming up? Growth, a restructure, redundancies or an acquisition often call for specialist experience.
- Are you confident you're compliant? With major employment law changes in 2026 and 2027, many businesses need expert input now.
- What's your budget? Compare the full cost of an employee with the cost of support when you need it.
The best of both: a blended approach
It doesn't have to be one or the other. Many businesses have someone in-house handling day-to-day admin, such as holiday, absence and onboarding, while an HR partner provides strategic advice, policy updates and support with complex or sensitive issues. As the business grows, the balance can shift.
Signs it's time to get HR support
- You're spending more and more of your own time on people issues.
- Your contracts, policies or handbook are out of date, or don't exist.
- You're facing a difficult situation, such as a grievance, disciplinary or redundancy.
- You're planning to grow, restructure or change how your teams work.
- You're not sure how the latest employment law changes affect you.
Key takeaways
- Outsourced HR gives you flexible, expert support only when you need it.
- In-house HR offers daily presence but comes with significant fixed costs.
- A blended approach often works best as a business grows.
- Big changes and new employment laws are a good time to get expert input.
Flexible HR support, tailored to you
At Growth People Partners, I offer HR support that fits around your business: one-off projects, an ongoing partnership, or interim HR leadership when you need it. You get experienced, practical support without the cost of a full-time hire. Get in touch for a free, confidential chat about what would work best for you.