HR Support for UAE Small Businesses: In-House HR vs. Outsourced HR

Running a small business in the UAE is exciting, challenging, scary, fulfilling and it comes with its fair share of challenges.

One of the biggest? Managing your people!

And as you grow so does the complexity of your HR needs. Even with a team of just 4 or 5 people, there's a lot to manage.

It’s a tough decision to make during your journey to whether you build an internal HR and People Team, outsource parts of your HR or the whole function?

So what are the options for small businesses and SMES in the UAE?

Let’s start with the option of building your own internal HR team.

It means a dedicated full-time employee or team to manage your human resources with the main advantage being your HR team is right there, fully immersed in your teams, your culture. They know your people, understand your business intimately, and can respond quickly to issues as they arise.

But building an in-house HR department can be costly, especially for small businesses. You're looking at salaries, benefits, training, and the technology needed to manage HR effectively. It's a significant investment, both in terms of time and money. With the constant worry of someone who can pay more taking away your HR superstar.

So how about external HR Support? The flexible Alternative

This is where external HR support comes in. It's becoming an increasingly popular option for small businesses in the UAE, and for good reason.

External HR support, also known as HR outsourcing, involves partnering with a specialised HR firm to handle some or all of your HR functions which could be anything from contracts, employee compliance, onboarding or everything across the people side of your business.

Why do small businesses often go for HR Outsourcing. It is typically down to Flexibility You can scale your HR support up or down as needed, without the commitment of full-time staff. It's often more cost-effective, especially for small businesses that might not need full-time HR support.

The challenge is finding a provider who spends the time to learn your culture and teams as you grow.

Once you do, the positive is you get a full team of UAE HR experts who are up to date with the latest UAE labor laws and best practices.

No need to worry about keeping up with changing regulations that's their job.

Fractional HR Support: The Middle Ground

Now, what if you want something in between? That's where fractional HR support comes in. This model allows companies to have a dedicated HR professional for a fraction of their time.

It's like having a part-time HR manager who knows your business but doesn't come with the full-time price tag. You get personalised support without the overhead of a full HR department.

Fractional HR support can be particularly beneficial for growing businesses that need more than basic outsourcing but aren't ready for a full-time HR team.

So, Which Option is Right for Your Business?

Well, it depends on a number of factors, you need to review the size and growth rate of your business, grab a pen and paper and write down where you are struggling and the complexity of your HR needs.

Then a big area to look at is the budget of your HR needs, your comfort level with outsourcing areas of your business and the level of personalised HR support you need.

Remember, even with a small team of 4 or 5 people, HR needs managing. You're dealing with payroll, time off, performance reviews and ensuring compliance with UAE labor laws. It's a lot to handle on top of keeping your teams happy and the day to day running of your business.

If you're a rapidly growing business with more unique HR needs and have great cashflow and a strong budget to match, building an in-house team might be the way to go.

If you're looking for a most cost-effective solution, flexible support, external HR services could be your best bet. 

And if you want a mix of personalised service and flexibility, fractional HR support might be the right option for you.

I think it’s important to remember, HR support isn't just about administration. It's about building a strong, compliant, and positive work environment that helps your business thrive.

If you need help figuring out the best HR support model for your UAE small business? That's what we're here for. Let's chat about your needs and find the perfect HR solution for your business.

‍