Why outsourced Human Resources services are a smart move for businesses

human resources services

Retained human resources services can be a smart decision for businesses.

Australian employment law is complex.  One misstep can be costly. 

Running a small or medium-sized business in Australia can feel like juggling while walking a tightrope. You’re managing sales, customers, cash flow, and staff all at once. When workplace issues arise, it’s tempting to handle them yourself or delegate to an office manager. But with the complexities of Australian employment law, even a small misstep can be costly.

That’s where outsourced or retained human resources services come in. Instead of hiring a full-time HR manager (which can cost $100K+ per year) or paying for expensive one-off advice, you can get expert guidance for a fixed monthly fee. ER Focus offers this service in formats tailored to your needs, providing certainty over costs and the peace of mind that you’re compliant, protected, and supported.

The Challenge: Growing business, growing HR risks

One of our recent clients, a rapidly expanding wholesale and distribution company with 35 staff, came to us after a run of HR headaches:

  • A poor hire that turned into a performance management issue within three months.
  • Confusion about casual conversion obligations under the Fair Work Act.
  • An underpayment risk due to Award misinterpretation.

They didn’t have the budget for a full-time HR manager, but the directors wanted reliable HR expertise without worrying about hourly rates and cost blowouts.

The Solution: Retained or outsourced human resource services

We set them up on an affordable monthly retainer, giving them:

  • Unlimited phone and email support for day-to-day HR questions.
  • Drafting and reviewing contracts, policies, and procedures.
  • Guidance on performance management, including lawful termination processes.
  • Recruitment support — writing job ads, shortlisting candidates, and advising on selection.
  • Updates on changes to Australian workplace laws that could impact their business.

Because the service was fixed-fee, they could call us without worrying about the meter running. Over 12 months, we helped them avoid two potential unfair dismissal claims and streamlined their recruitment process — saving them tens of thousands in potential costs and lost productivity.

Why retained human resources services work for many businesses

Professional and reliable HR services without the overheads.

1. Cost Certainty
You know your HR costs upfront. There are no hidden charges or unexpected invoices — just predictable monthly support tailored to your business needs. Retained human resources services give you access to professional HR advice without the cost of hiring an internal HR manager. This model allows you to budget confidently while ensuring expert support is always available when you need it most.

2. Access to Expertise
Employment law, Awards, and Fair Work compliance are complex and constantly evolving. With retained human resources services, you gain direct access to experienced HR professionals who stay up to date with legislative changes and industry best practices. We interpret the rules, advise on compliance, and help you avoid costly mistakes, ensuring your business stays compliant and your people are managed fairly and legally.

3. Proactive Support
Instead of waiting for issues to escalate, we help you prevent them through ongoing, hands-on HR guidance. Our retained human resources services include reviewing and tightening contracts, updating workplace policies, and training managers to handle performance or behavioural concerns confidently. By addressing potential risks early, we help you maintain a positive workplace culture and avoid unnecessary disputes or Fair Work claims.

4. Scalable as You Grow
As your team expands or your business changes, your retained HR plan grows with you. We adjust our human resources services to match your level of support — whether you need help recruiting new staff, managing a restructure, or implementing advanced HR systems. This flexibility gives you the advantage of an experienced HR department without the overheads of full-time employment, ensuring your HR strategy evolves seamlessly alongside your business.

The Australian HR landscape: Why expertise matters

Compared to some overseas markets, Australian employment law is highly regulated. Between the Fair Work Act, Modern Awards, and workplace health and safety requirements, compliance isn’t optional — it’s essential. Get it wrong, and you risk:

  • Expensive Fair Work Commission claims
  • Reputational damage
  • Loss of good employees due to poor processes or culture

Large HR providers have built their business on helping SMEs with compliance. But their model often focuses on high-volume advice and long lock-in contracts. ER Focus offers a more personalised, relationship-based approach — you work directly with senior HR and industrial relations specialists who know your business, not a call centre.

Case Study: The wholesale business that stayed ahead

Our retained client mentioned earlier avoided what could have been a $25K unfair dismissal payout by acting early, with our guidance. We reviewed the case, documented the performance issues, and coached their manager on lawful termination. The employee’s exit was smooth, respectful, and risk-free.

In another instance, we advised them on Award classification changes.  This meant they avoided a costly underpayment claim that could have triggered penalties.

The directors say the monthly retainer “pays for itself many times over” — and gives them the confidence to make tough decisions quickly.


FAQs

Retained HR support for small and medium sized businesses.

Q: What does retained HR support mean?
A: Retained HR support is an ongoing arrangement where a business pays a fixed monthly fee for access to HR expertise and services. It’s like having a senior HR manager “on call” without the cost of a full-time salary.

Q: Is HR outsourcing worth it for small businesses?
A: Yes — especially for businesses with 5–100 employees. Outsourcing gives you access to experienced HR and industrial relations professionals when you need them, without the overheads of hiring in-house.

Q: How much does retained HR support cost in Australia?
A: Costs vary depending on your needs, but most SMEs find that a monthly retainer is far more cost-effective than paying ad-hoc hourly rates or hiring full-time HR staff. It also provides cost certainty with no surprise invoices.

Q: Can HR consultants handle performance management and terminations?
A: Absolutely. A retained HR consultant can guide you through lawful performance management processes, help you avoid unfair dismissal claims, and provide the right documentation.

Q: How is ER Focus different from large HR providers like Employsure?
A: Large providers often use a call-centre model with long lock-in contracts. ER Focus offers a personalised, relationship-based service — you work directly with senior HR and industrial relations specialists who know your business and can give tailored advice.


Our outsourced and retained human resources plans

Provides small to medium business (SME) personalised senior HR and industrial relations expertise for a simple monthly fee. No lock-in surprises, just straight-talking advice and proactive solutions. Contact us today to discuss a plan that fits your business and your budget.

David Haydon
Principal HR Consultant, Workplace Investigator and Employment Relations Specialist Consultant.

 

Disclaimer. This article provides general information only and is not intended as legal advice. Every workplace matter is different, and employers should seek professional advice tailored to their circumstances. ER Focus is not a law firm. Where legal advice is required, we work with trusted employment lawyers and can assist in making referrals.