What Is A Virtual HR Director? And Why Do You Need One Today?

As a small business owner, you’re probably under the impression that you don’t need an HR department or even a Virtual HR Director. If you head up a newly-formed Startup or only have a few employees, your resources will surely be limited, leading you to think “What do I need HR for? They just do the hiring and firing. I can do that myself and save money.”
Well, while it is possible to spend time scouring the internet, reading up on Employment Laws and keeping up to date, so you remain legally compliant, you need to ensure that you are spending your limited time focusing your strengths in the right areas. In a previous post, I discuss knowing your strengths
HR is more than hiring and firing. You need to maintain the same compliance for one sole employee as you do for 50 employees. You need to ensure that you are maintaining employee relations; otherwise, things can go wrong, very quickly.

Does Your Small Business Need Support From A Virtual HR Director?

Here are the top four areas a Virtual HR Director can assist you; saving you time, energy and without having to donate a kidney!

Employment Law

It is so easy for employees to have access to more information than employers. The internet is full of information that read in the right way can fit any situation.
Disciplining your staff in a small team can make it a stressful working environment. Having an impartial outside resource to help with those processes takes the pressure off. A Virtual HR Manager will be up-to-date on the current procedures and policies to ensure you are staying on the right side of employment law.
Employment Law is a hugely broad subject, covering all manner of topics that you may not even have thought of. For instance, employers need to prove all their employees have the right to work in the UK.
They also need to display certain legal documents and ensure statutory training has been completed. Payroll is a vastly ranging topic and one that you need to get right first time. Similarly, did you know that workplace pensions will soon be in force in all companies… even those employing just one person.


Employing someone will no doubt be your highest cost and one that you need to get right. Do you have the time to write job descriptions and go through dozens or hundreds of CVs? Do you know the most advantageous places to advertise?
Once you have the sifted through all those CV’s, you then need to set up interviews. Do you know the best questions to ask? Do you know what not to ask? You must ensure you are finding the best talent from the off. Otherwise, it could be a costly exercise you may need to repeat a few months later.
A Virtual HR Manager will have the experience and expertise to guide you to make the best recruitment decisions and be as hands-on or hands-off as you need.

Legal Compliance

Do you have an up to date contract of employment that protects you as a business? As an employer, you must issue a contract of employment within the first two months of employment.
Do you have an employee handbook or any statutory policies such as maternity? Do you know what your legal obligations are if you have an employee who is pregnant? If an employee is not performing, do you have any processes in place to manage them?
An experienced Virtual HR Director will implement simple, cost-effective processes, so you have answers to all these problems before they even arise. You have worked hard to build your business, and you don’t want to lose it in legal fees or an Employment Tribunal.
You wouldn’t buy your dream car and then not fully insure it. Make sure you have protected your business by getting expert HR support.

Virtual HR Director On A Budget

All small businesses need HR support. This support could range from ad-hoc support to a service plan to help spread the cost.
If you enlist the help of a Virtual HR Director, even a small HR budget will allow for a few hour’s support a month, which will give you peace of mind. You can always increase support as and when you need it. A Virtual HR Director will be able to point you in the right direction for time-saving support like HR Systems or the best value places to advertise jobs.
So there we have it, folks. Yes, you don’t need a full-time HR Department, but sign up for support from an experienced Virtual HR Director like myself and your business will gain so much. From impartial advice, a fountain of HR knowledge to a confidante you can share anything with, Kate Underwood HR will be there for you!

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