When it comes to functions like HR, marketing and IT, businesses have the choice of hiring multiple senior managers – or sourcing external specialists to support with strategy, guidance and workflow.

Especially among SMEs, outsourcing is becoming more commonplace; here, Michelle O’Connor – Chief People Officer at Hive Support Services – discusses the benefits of doing so, alongside some of the challenges her team is seeing across the UK business sector.

Hive Support Services positions itself as an “all-in-one business support hub”. What was the gap in the market that inspired the launch of the business versus developing a single-discipline consultancy?

Businesses don’t experience challenges in neat categories. One week it might be a people issue, the next it’s cash flow, marketing or planning for growth. Too often, business owners are left managing several different advisers who don’t necessarily communicate with each other or understand the wider picture.

Hive changes that. Instead of offering one specialist service, we brought together expertise across HR, finance, IT, marketing and business support so clients can access everything they need in one place. That means advice is joined up, conversations are simpler and decisions are made with the whole business in mind.

At the end of the day, we wanted to make professional support more accessible. Business owners should be spending their time growing their businesses, not coordinating multiple suppliers.

What’s the biggest misconception SME owners have about outsourcing “back office” functions like HR, finance, IT and marketing? 

The biggest misconception is that outsourcing means losing control.

In reality, it should give you more control. The right partner gives you access to specialist expertise, stronger processes and better information, helping you make more confident decisions while staying firmly in charge of your business.

There’s also a perception that outsourced support is only for businesses that can’t afford an in-house team. We’re seeing the opposite. Many growing businesses choose outsourced support because it gives them flexibility, access to a wider range of expertise and the ability to scale without committing to several senior hires.

In working with businesses across different sectors all utilising different service areas, what stands out as the greatest challenges right now?

Every sector has its own pressures, but the biggest challenge we’re seeing is the pace of change.

Businesses are dealing with rising employment costs, changing legislation, economic uncertainty, recruitment challenges and rapid advances in technology, particularly AI. At the same time, many owners are so busy running the day-to-day that they don’t have enough time to step back and focus on the bigger picture.

The businesses adapting best aren’t always the biggest. They’re the ones making informed decisions, staying agile and surrounding themselves with the right support.

What are your perceptions on change in leadership and do you think Andy Burnham will be positive for business and the economy?

Good leadership creates confidence. Businesses are far more likely to invest, recruit and grow when there’s a clear direction and a degree of stability.

Andy Burnham has been a strong advocate for Greater Manchester as a place to invest, innovate and do business. His focus on skills, infrastructure and collaboration has helped strengthen the region’s reputation, and that’s positive for businesses operating across the North West.

More broadly, businesses want leaders who understand the realities of running an SME and are willing to listen. When policy is shaped with businesses rather than simply for them, everyone benefits.

Do you think Government support for SMEs is currently fit for purpose? What’s the one thing you’d change if you could?

There is support available, but for many businesses it’s difficult to find, understand and access. Most SME owners are already stretched, so spending hours trying to navigate grants, funding or support schemes just isn’t realistic.

If we could change one thing, it would be to simplify the system. Making support easier to access and bringing it together in a more joined-up way would help far more businesses benefit from what’s already available.

We’d also like to see more long-term certainty, giving businesses the confidence to invest and plan ahead rather than constantly reacting to policy changes.

Looking further ahead, what does success look like for Hive in five years’ time and how do you foresee the business evolving?

Success isn’t about becoming the biggest; it’s about becoming more valuable to the businesses we work with.

Over the next five years, we’d like Hive to become an even more trusted strategic partner for businesses. As regulation becomes more complex, technology continues to evolve, and business owners face increasing pressure to do more with less, we think businesses will place even greater value on practical, joined-up advice.

We want to be the first conversation a business owner has, not only when something goes wrong, but when they’re planning for growth, making important decisions or looking at what’s next. We’ll continue developing our services so our HR, finance, IT, marketing and business support teams work even more closely together, giving clients advice that’s proactive rather than reactive.

We’ll also continue investing in technology and AI where it genuinely improves the client experience, but we don’t see technology replacing relationships. The best outcomes come from combining great people with the right technology.

Ultimately, success will be measured by the impact we have. If we’re helping more businesses make better strategic decisions, grow sustainably and feel confident about the future, then we’ll know we’re doing our job well.

Anything else to add?

SMEs are fundamental to the UK economy, but the demands on business leaders continue to increase. They are expected to manage people, regulation, technology, costs, customers and growth, often with limited internal resource and very little time to step away from day-to-day delivery.

That is why the right external support should not be viewed simply as an extra pair of hands. Used well, it becomes part of the business’s capability and a strategic advantage.

No business owner can, or should, be an expert in everything. Having trusted expertise across HR, finance, IT, marketing and strategy gives leaders access to the right capability at the right time, helping them make better decisions, manage risk and focus their own energy where it creates the greatest value.

That is the role we want Hive to play. We work alongside our clients to understand both the immediate challenge and the wider direction of the business. By bringing together the right expertise, insight and practical support, we help create the capacity and clarity leaders need to move forward with confidence.

Ultimately, the aim is simple: less time firefighting, more time leading, building and growing the business.