By Daniel Hunter

A new entrant to the market has issued a clear warning against the growing number of small businesses that are being handcuffed into iron-clad contracts by ruthless human resources (HR) providers.

ClearSky HR believes too many SMEs are needlessly tying themselves into long-term contracts that last for five or even seven years and cost thousands of pounds.

A lack of clarity within the industry, with murky renewal windows and vague contractual terms, sees current providers tighten their grip upon small businesses.

Launched in late 2012, with the aim of bringing greater flexibility and price transparency to the outsourced HR and employment law sector, ClearSky HR has urged for industry standards to be raised, with many SMEs unknowingly putting themselves at risk.

“It’s alarming that small businesses are paying such vast prices for what is the very same product," Derek Kelly, managing director at Cheshire-based ClearSky, said.

“For many business owners the penny doesn’t drop until they decide to switch; but it’s simply too late — their current provider already has them trapped.

“ClearSky HR is here to shake up traditional industry norms and our message is simple: there is another way.

“By offering an open and honest approach, with monthly rolling contracts and fixed fees, we’re confident that we have spotted a gap in the market.

“We would urge our competitors in this sector to adopt the same ethos over pricing and contracts in order to ensure the SME community are being properly served.”

Join us on
Follow @freshbusiness