I get it, you are a small business – maybe even a startup and you’ve been tackling various HR items on your own to this point. Paying for a full time or even part time HR employee isn’t in the budget and really for the size of business you have right now, you don’t need HR. Or do you?
A common misconception is that businesses don’t need an HR position until they hit about 50 employees or so. This is so wrong. Yes, I might be a bit biased, but by the end of this article, I would hope you would agree with me and what is becoming much more common place movement and advised by experts.
To look at this a little deeper, it is helpful to understand some of the functions of HR. An effective HR resource will ensure that your company has a solid HR foundation from which to build upon as your business grows and to support business growth. This foundation would include things like: Effective recruitment and selection plans including set interview questions, job descriptions, putting employment agreements in place, orientation plans, legally required and workplace specific employment policies, required employee files, employee documentation, performance management processes and procedures, documented disciplinary processes, reward and recognition strategies, goal setting, leadership and mentoring, succession planning, termination procedures and documentation and so much more.
The biggest impact on your business is the fact that potential legal issues can be minimized. It is one thing to have templates in place for various HR related items, but it is another thing to understand how to use them, pitfalls and to ensure they are implemented properly. Training is huge. In the HR world, it is very easy for a manager to ask something in an interview that is against human rights, say something to an employee that opens up a discrimination case, terminate someone without due diligence and so on. Any one of these items can open your business to huge law suits which obviously directly impact your bottom line but also your reputation and can ultimately destroy your business.
Knowledge gained from an HR professional is huge. Training provided to you and your team on HR related items (some listed above) helps protect you from massive financial loss.
I challenge you to think about the impact of NOT having HR representation for your business. You may not need to hire an HR employee for your business at this time, but I strongly advise you to have HR representation. Whether you look at engaging in HR related services through us such as our new HR Hotline service, or through another method, don’t miss out on the opportunity to minimize your risk and grow your bottom line.