Who Needs HR Anyway: Money Well Spent
Isn’t HR the place where you go to get your raise, benefits, resolution to the co-worker problem or have the dreaded performance conversation? As a small to medium size business owner those items are often perceived to be the problems of “bigger” companies with a large number of employees.
“Surely it’s not rocket science and we can have the Office Manager handle those few things or better yet I can do them myself.”
Human Resources as it relates to revenue falls squarely in the cost savings section of the income statement. On average the lifecycle of an employee from recruitment to resignation/termination involves at least 5 federal agencies/regulations and a host of state or local statutes that work hand in hand. Recruiting costs alone (manpower does translate to dollars) may total 5-10% of the annual salary for that employee before they have done one task. While benefits are second only to payroll expenses, in many cases the correlation between employee retention and which benefits you offer is often overlooked. Quality employees evaluate the full package not just the gross wages.
The decision when to staff for Human Resources function is unique to each organization, however the idea that it remains unnecessary after employees are hired is standard misconception across industries. In order to remain compliant with employment regulations or simply design an efficient process for getting a return on investment within a reasonable timeframe from a new employee, it is crucial to understand what is expected and how to achieve it.
A well thought out road map to company goals goes a long way to success and profits.
Have you determined your path yet? Schedule a complimentary consultation with one of our consultants and explore your options. We provide guidance on the appropriate processes for your business from hiring to termination and everything in between.