Nobody started a business so they could deal with the HR, most first-time employers won’t even consider employment law in the early days of their start-up. The reality is that new business owners are more interested in the aspects of the business that will deliver the more obvious reward.
Unfortunately, small businesses are far less likely to survive a tribunal than a large outfit. This can be because of a multitude of reasons including:
- You’ve not implemented contracts in the early days of a staff member’s involvement
- Not paid an employee correctly in the beginning.
- Let a staff member go and they have then made it their mission to dismantle your hard work.
These issues are problematic enough in any workplace, however in a small business everything can become that bit more personal.
The fact is that HR should be viewed as instrumental to your growth not as a cost obstruction to it. Being able to rely on someone to handle the contracts and documentation as well as other administrative duties so you won’t be tied up with paperwork.
However not everyone can afford to hire a full-time HR person to their company, or if they do, they are expected to wear so many hats that they become redundant in that role.
So, what’s the solution?
It’s almost natural to businesses now to consult marketing agencies for branding or outsourcing their payroll. Outsourcing your HR fully insures your business’ growth and prevents any HR issue from holding you back at a fraction of the cost of hiring an in-house team.
To help you determine whether you’re in a position to outsource, we’ve provided five BIG signs that you’re ready for HR Support.
- You’re now doing the admin of the business you created. It almost sounds ridiculous, you started a business and you’ve ended up becoming the office manager as default. Sometimes this is a case of unwillingness to delegate but more often than not, you’re too busy. Alternatively, an office manager you’ve hired is now moonlighting as the HR person (as well as everything else) which is more than likely making them now pretty useless at office management and HR.
- You’re growing. Growing means hiring and hiring is the foundation of employment. You’ve probably heard the horror stories of employers naively posting jobs ads asking for a “Young Waitress” or asking in interviews if a potential employee plans on having children, only to be taken to tribunal before even having a member of staff. While these incidents do happen, common sense tends to prevent most tribunals before employment. What HR expertise usually does is ensure that the right employee is chosen and all the necessary procedures have been met going forward.
- Paying staff is becoming too time-consuming and difficult. While this may not be true for everyone, a lot of start-ups will have an understanding with their employees that the pay isn’t going to be ‘conventional’ to put it mildly. The biggest problem with this is that while you might feel there’s a comradery amongst the office and they accept that they are part of something on the cusp of brilliance, they might not. This and not giving your staff contracts of employment are huge mistakes to make, especially when going to business with friends. If the relationship ever sours you have handed them a silver bullet.
- Your staff turnover is very high. This one is straightforward, it is more expensive to regularly train new staff than to keep experienced employees. It has a damaging effect on staff morale and productivity to have a revolving door hire/fire process. Work culture is important and HR people are experts in this, they can cultivate a positive work environment and prevent employees that aren’t a good fit for the business, from ever getting in.
- Communication and feedback has become none existent. For whatever reason, you can’t communicate to your employees the information they need to be effective. They are asking questions that you feel aren’t relevant or that you simple don’t know the answer to regarding employment law and health and safety. It’s difficult to balance honest conversation and professionalism when you are single-handedly steering the ship.