FRENCH Duncan has launched a standalone human resources company as the mid-tier accountancy firm continues its expansion strategy.

The Glasgow-based firm has hired human resources consultant Louise McCosh to head the division, which it said will provide a valuable service to small and medium-sized enterprises (SMEs) in Scotland.

French Duncan HR Services will offer clients advice and assistance on areas such as pension auto-enrolment and employment law, highlighting recent changes around the issue of holiday pay as an example of the shifting legal landscape.

It will be run by Ms McCosh alongside new recruits Lois McMurtie and Amy Gardiner, as well as French Duncan partner Stephen Hughes.

Fees charged by the firm will vary according to the level of help they receive, with the accountant describing it as a "bespoke service".

Mr Hughes hopes the new business will usher in a fresh approach to HR among SMEs, and persuade them to manage HR proactively instead of when employment issues arise.

He said: "It's a more active management of staff, processes and basically avoiding issues.

"Fundamentally, in the SME sector the HR function by default tends to land on the desk of the financial controller or the financial director. The truth of the matter is they don't necessarily have the time or the skills to deal with it in the most efficient way.

"What we are trying to do is offer a service that allows people to get on with their day job and leave HR management to the experts."

Mr Hughes said French Duncan was alerted to the potential of launching its own HR division after Ms McCosh came in as an external consultant. While he said the company had a "good" HR function at the time, he noted there was an obvious "step up" in the quality when Ms McCosh joined.

Mr Hughes said: "When she came on board last year the idea was that as a firm we would develop best of breed in house, if you like, but then roll a service out to our clients. I believe fundamentally there is a gap in hands-on, proactive service in HR."

Ms McCosh said the demand for the service became clear then she worked for the accountant. She said: "French Duncan was a client of mine when I worked in external consultancy, so they would refer clients to me anyway. So we know there was a market there and thought maybe we should explore if further."

Mr Hughes did not specify the investment French Duncan has made to set up the business, but noted that the recruitment of Ms McCosh, Ms McMurtie and Ms Gardiner signalled its commitment to the venture.

Ms McMurtie, who joined this month, worked previously with Ms McCosh. With a degree in HR and law, she has worked with companies in a range of sectors.

Ms Gardiner joined the company full-time after working at French Duncan part-time whole completing her HR degree. She has focused so far on developing HR software and processes. The launch of French Duncan HR Services is the latest investment made by the accountancy firm as it continues to grow its business in Scotland.

The company, which invested hundreds of thousands in moving to a new Glasgow office in March, acquired independent Bearsden practice Abercrombie Gemmell in June.

That came after it took on the tax consultancy team from Chiene and Tait earlier this year, while 12 months previously French Duncan merged with Stirling-based Macfarlane Gray.

French Duncan employs around 200 staff across offices in Glasgow, Edinburgh, Stirling, Hamilton, Dumbarton and Kirkintilloch.

Asked if the firm had identified other sectors to potentially move into, Mr Hughes said: "The message is we are investing in people and we have invested quite heavily in other departments as well in the last couple of months. It's an indication that there is a slight upturn in the economy.

"As a firm we are not scared to put our money where we think there are other opportunities, and I think that keeps us ahead of the pack."