Does a Small Business Need Human Resources?

If you’re the owner of a small business, you may feel tempted to cut costs wherever you can. However, some organizational departments are vital to ensure the successful growth your business deserves — regardless of your business sector. If you can’t hire an in-house team for these resources, outsourcing may mean the difference between stagnancy and growth.

Whether you operate a large or small business, you need human resources. Professionals dedicated to human resources can give you and your employees the support you need to help grow and protect your return on investment (ROI).

The importance of Human Resources

If you run a business based in the US or the UK, but have offices in Europe or European clients, you may not be able to navigate the complexities and differences of EU Human Resources practices on your own.

You may wonder why your business needs an HR consultant. If you’re expanding your company to Europe, a European-based HR consultant can provide valuable insight into the differences in employment and labor laws, along with the nuances of European HR best practices.

In order to reduce your risk of legal liability should Human Resources issues arise, you need HR professionals who can navigate through those murky waters for you. An accountant or marketing professional shouldn’t be expected to take over HR work. You should utilize a team that specializes in HR.

What is Human Resources?

Human Resources is the business department that handles administration of employee benefits, workplace grievances, hiring, insurance, and training policies and procedures.

In-house versus external Human Resources help

A US-based study reflected that 31% of employees with a Human Resource workload feel unqualified for their jobs. They haven’t received the proper training to ensure the HR department runs smoothly. The Hartford reports that 54% of US-owned businesses keep HR in-house.

However, within a small business, an entirely separate in-house HR department may prove difficult. You may think, “My business only has 10 employees–surely they can approach me should a problem arise.” An employee may not feel comfortable addressing certain HR issues with you. An excellent HR team can also allow you to focus on your business operations and keep your employees happy.

If you’re on the fence about outsourcing human resources for your small company, doing so can alleviate your stress and allow you to focus on your professional mission. Connect with Europe HR Solutions and discover the benefits of partnering with a European virtual HR expert.  An outsourced HR team can approach your needs without bias, and give you a well-rounded perspective on employee benefits and training needs.

How Human Resources helps with ROI

HR can prove integral to the ROI of your small business. Seasoned Human Resources professionals know how to protect your workplace and ensure safe working conditions. HR can also improve your ROI in the following ways:

  • Strategic implementation of training and benefits programs: Actionable plans that allow overall organizational success as a result of human capital. HR will also determine where training is needed and schedule employee training.
  • Benefit analysis: Determining the right benefits packages, based on employee retention, size of staff, and other factors, can help your business remain within budget.
  • Reduction of liability: By quickly identifying and addressing issues of workplace safety and unfair labor practices quickly, HR specialists can help reduce your liability and exposure to lawsuits and other legal issues.
  • Development and recruitment, and training: Human Resources is also responsible for helping you to attract and retain the best employees. HR practices can reduce employee turnover by ensuring employee satisfaction and employee input into the development of your business.
  • Legal compliance: The right HR team is well-versed in any local or federal laws with which you need to comply. They’ll monitor compliance and necessary paperwork so you can focus on growing your business.

The differences in US, UK, and EU Human Resource Management   

There are key differences in Human Resources practices in the US, UK, and Europe. If you’re looking to expand your small business internationally, it’s vital that you’re aware of these differences. Let’s take a look:


There are federal laws in place that HR must comply with in the UK, US, and EU. However, the laws surrounding HR aren’t universal.

Employment contract

In the US, a written contract of employment isn’t required. However, in both the EU and the UK, the employer must write up, and both the employer and employee must sign a contract of employment.

Family leave 

As you can see from this list, family leave laws vary drastically in the UK, US, and EU:

  • In the UK, maternity leave of at least two weeks and up to 52 is required.
  • Paid adoption and paternity leave also exist in the UK.
  • Unpaid parental leave of 18 weeks per child is also offered in the UK.
  • In the US, up to 12 weeks of unpaid leave can be taken.
  • There are no federal requirements pertaining to maternity or paternity leave in the US.
  • In the EU, maternity leave of up to 18 weeks is offered and unpaid parental leave of up to four months can also be granted.

Guaranteed vacation time

UK businesses are mandated to offer at least 28 days of vacation (or holiday) paid time off per year. In the EU, workers must be offered a minimum of ten vacation days and 12 paid holidays yearly. In the US, there is no requirement for vacation or holiday pay and it is up to the discretion of the employer.


In the US, there is no right to a pension. In the UK and in Greater Europe, there’s a guaranteed pension for employment — both the employer and the employee contribute to this fund. However, the US requires Social Security taxes on each paycheck.

Privatized health insurance

Although US companies with less than 50 employees don’t always provide insurance options for their employees, most give their employees the option. In the UK, the NHS offers free health care.

Nonetheless, individuals may purchase private health insurance on their own. In the EU, most countries offer some form of universal health care. Private health insurance options vary from country to country.

Sick pay   

In the US, sick leave varies from company to company. It often falls under the broad umbrella of paid time off (PTO), or, is given in limited increments. In the EU and in the US, sick leave often requires a written doctor’s note as well. In the UK, sick leave can be paid for up to 28 weeks, based on diagnosis.

These are just a few examples of how the nuances of Human Resources can vastly vary when you expand your small business to other countries.

How Europe HR Solutions can help

If you’re a business owner located in the US or the UK and looking to expand your business in Europe, Europe HR Solutions can help you navigate through the complex legalities of European HR. You should be able to focus on your business without having to stress about cultural differences or compliance with local laws.

Our team has supported companies in over a dozen countries by taking care of their Human Resources needs. As your outsourced European HR professionals, we will provide you with the legal knowledge and project plans you need to operate in European countries. We’re an extension of your business, and want your employees to thrive.

A small business does need a Human Resources department, but you don’t have to take on this complex work on your own. Contact us today and let us take care of your international HR so you can focus on growing your successful business.

Business owner surrounded by paperwork, indicating the need for HR outsourcing

How outsourcing HR can save money

If you own a small or mid-sized business, you understand how frustrating it can be to spend time and money on tasks that don’t generate revenue. The costs of building an HR department from the ground up can prove astronomical. 

When you’re launching your small business in a foreign country, especially, you’ll need HR solutions before you open your doors for daily operation. Europe HR Solutions can help.


The right outsourced HR team can reduce your ongoing costs in the following ways:

  • Payroll administration:

By outsourcing your HR, you can bring in vetted professionals to set up and administer your payroll system. This team can train you to ensure a seamless transition after their service contract is completed. 

You won’t have to stress over hiring long-term employees to take care of payroll, or training payroll administrators.

  • Benefits implementation:

Your outsourced HR team can help you to select the right benefits software package and enroll the employees of your small business.

  • Human resources management:

Outsourcing your HR can prove to be a game changer for your overall human resources management, too. HR consultants contribute through a wealth of experience in compliance, employee relations, and recruitment.

This saves valuable time for small business owners, mitigates the risk of legal issues and delays in operations, and provides access to the latest industry best practices and trends.

When it makes sense to outsource HR for small businesses  

International companies with fewer than 50 employees are considered small businesses, and rarely expand to Europe with an inhouse HR team already in place.

For US and UK-based small businesses that launch European operations, there’s usually a CFO who oversees broad HR tasks. 

However, the CFO or other executives managing HR for a small business launch in Europe often lacks the country-specific legal and HR expertise necessary to ensure innovative solutions that reflect the country’s best HR practices and legal compliance.

It’s important to consider the following when determining whether or not you should outsource your HR:

  • What specific HR services and support does your business require?
  • Do you have anyone on your team who’s well-versed in country-specific employee regulations and labor laws?
  • Will you need management compliance training and support?
  • Will your current employment handbook, policies, and procedures translate to adhere to the needs of employees in different countries?
  • Do you have a small HR department in place that may need help implementing payroll, benefits, training, and development?
Time is money. Outsourcing HR saves time, letting you focus on what matters.

What to expect with Europe HR Solutions

By outsourcing your HR, you may find it’s easier to take care of your daily operations and to strategize and prepare for the launch of your small business in Europe. Europe HR Solutions has supported countless small, mid, and large-sized businesses in their international HR needs.  

Whether you need our team to manage your HR and implement solutions, or you need us to help guide the HR professionals you have on staff, we can sweat the small stuff to ensure your big picture remains intact. 

You can expect Europe HR Solutions to do the following:

Act as your representatives:

We’ll act as an extension of your small business. This means we will collaborate with you and ensure we’re promoting your vision and standards in any HR matters we handle for you.

Ad hoc requests:

We understand that you may have ad hoc requests. We’re used to fast-paced, high pressure situations, and will ensure your needs are met in a timely manner.

Assist with HR strategies:

We’re committed to providing HR services that help your business grow and succeed. We’ll make certain that the innovative solutions we offer adhere to your overall business and HR strategies.

Create and implement policies and procedures:

We’ll strategize with you to create and implement your company’s policies and procedures and ensure details are in place that will help your employees thrive and create a positive work environment.

Handle employee contract needs:

We’ll help to create and manage your employee hiring processes (including talent acquisition, interviews, and onboarding checklists), employee complaint procedures, performance reviews, and off-boarding processes.

Legal compliance:

Europe HR Solutions will use our thorough knowledge of the various nuances in employment regulations and labor laws to keep your operations, policies, and procedures within legal compliance. This will help reduce your liability risk should issues with employees arise.

Manage employee and management training and development: 

We can cover government-mandated and specific position training programs to support your employees to work with excellence and grow in their positions. This includes compliance training for managers.


We can utilize the latest in talent acquisition trends and industry best practices to make sure you attract the talent you deserve to fill your staffing needs. We want to help you to build the best team possible to create a positive work culture and  a productive team.

The cost of outsourced HR services for small businesses

When to outsource your small business’s HR could be determined by your available budget. The cost of outsourcing your HR may be an upfront expense, but in the long run, it can save you significant money and protect your revenue.

The services offered by Europe HR Solutions can vary in cost, and are dependent on the extent of service you require. We can determine the cost based on the scope of the project.

For example, you may need us to manage a specific, well-defined project that allows us to estimate the cost involved. However, you may require our services on a daily basis, for an extended period of time, or find you need support in an immediate HR emergency. This may mean we will need a retainer payment or charge for an hourly rate.

How to determine your HR outsourcing needs

Before you decide to outsource your HR, it’s vital to determine what type of services you require. It can be overwhelming to discern your needs, but reflecting on and strategizing about specifics can be beneficial.

Answering the following questions may help you to understand what services you require:

  • Do you need an outsourced HR professional who takes the time to know and understand your business, staff, and culture?
  • Do you need HR professionals who are available on a daily basis?
  • Are you in dire need of help with critical talent acquisition?
  • Do you require flexibility and a large scope of HR tasks?
  • Are your needs limited to legal compliance and knowledge?
  • Do you need help developing your workplace culture?
  • Do you need to overcome language barriers?
  • What are your long-term HR needs?

Other benefits of outsourcing your HR

Once you’ve determined when to outsource HR for your small business, you may find that it allows you to streamline your operations and focus on your overall business strategy.

This strategic move reduces your administrative burdens of managing payroll, benefits, and other HR tasks in-house. The cost-effectiveness of outsourcing becomes evident as it eliminates the need for investing in HR infrastructure and ongoing training. 

This newfound flexibility can enable your small business to adapt quickly to market changes and allocate resources more efficiently. Ultimately, an outsourced HR team becomes a strategic partner, and empowers you to prioritize your employees, enhance organizational efficiency, and thrive in the competitive European business landscape.

Contact Europe HR Solutions

Europe HR Solutions understands how crucial HR is to the foundation of any successful business. We can consult with you to determine when it’s best to outsource HR for your small business, and customize innovative solutions with you. 

Your HR needs remain our greatest priority, and we want to support you in ways that promote legal compliance and allow you to see your small business dreams come to fruition. 

Connect with Europe HR Solutions today for a free consultation and be sure to check out our blog for the latest HR insights, tips, and trends. The road to success for your small business is just an HR step away.

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    Inez Vermeulen

    Inez Vermeulen

    Inez Vermeulen is the Founder and CEO of Europe HR Solutions, with over 25 years of successful corporate and entrepreneurial experience in various global industries. She has helped grow and expand the European divisions of global companies such as Coca-Cola Company, Regus, DHL, American Medical Systems, etc. Inez has received several company awards for her entrepreneurial spirit and success.

    She owns a Bachelor’s degree in French, History and Latin, several HR global expert certifications, a Master’s degree in Metaphysical Sciences, ICF Coach Certification and has completed her Doctorate on Transformational Leadership. Inez is fluent in Dutch, English, French, Italian and German. She works in partnership with an extensive international network of independent & professional companies and resides in Belgium near Brussels with her husband Jan.