As an HR professional I could write for hours about how I believe that HR can save your business £££’s but of course you would think that I am biased……and you’d be right. But that is because I have seen the impact of HR in a variety of businesses and the real value that it can add if you have the right team in place.
The first thing most business owners think of when they are deciding whether to hire HR for their business is cost – a valid concern. However, it’s important to keep in mind that a small investment up front can lead to substantial cost savings in the long run.
The majority of HR professionals will understand that as a small business you will want to keep expenditures to the bare minimum. And believe it or not there are actually some ways HR can help you save some money.
Here are some of the ways they can help:
Direct Recruitment Processes
Believe it or not, it is not unusual for companies to spend huge amounts of money in the process of hiring new personnel from advertising to recruitment agency fees. And as you will know, a great deal of time and effort is spent finding the right people for your business (and this time will be costing you money too if you are sifting through CV’s/meeting with endless streams of candidates). All of this can be handled by HR – meaning that your time can be better spent elsewhere. HR will be able to advise you on where best to place adverts, how to lower your costs when recruiting and how to effectively sift and interview candidates to increase your chances of finding ‘the one’! Your HR team can also train your staff on how to interview effectively and get the best from candidates during the recruitment process. This takes the pressure off one individual and creates a more cohesive approach to recruitment which is good for you, your employees and the candidates.
Improving Your Employee Retention
Another area where companies lose altogether too much money is when an employee resigns. Quite often it has nothing to do with the actual job itself but other factors that seem to displease and drive them to look elsewhere.
Now, I’m not saying that HR have a magic wand and can instantly stop employees leaving the business. But they can certainly impact your employee turnover figures dependent on what the reasons for leaving are (that leads to another way HR can save you money……exit interviews can be invaluable and provide you with statistics and details on why employees are choosing to leave the business any re-occurring themes and issues can be addressed). Whether it’s planning and implementing short training sessions or meeting with employees one-on-one to discuss their personal needs in terms of job satisfaction, these are examples of activity HR can do to keep employees happy within their role within your business.
Remember the cost of training new employees for any position within the company can be exorbitant, so it is imperative to keep employee turnover to a minimum.
They Can Save Your Skin If You Get Sued
One of your worst nightmares is probably getting sued by a disgruntled employee. HR can help to mitigate your risks by ensuring that small issues and problems don’t snowball. Admittedly, we can’t protect you from everything. But we can provide a common sense approach to situations that will keep you within the lines of the law.
They Can Help You Motivate Employees
If an employee is under-performing, HR can give you tips to motivate them, and advice on how to manage the situation. They can guide you on how to set targets, and if the employee does not meet the expected standards they can help you deal with any issues quickly to avoid any further impact on your business.
Strategic Place On The Board
When it comes to the strategic direction of the company, HR can also play an important role. HR should have a place at company board meetings so that they can keep board members informed about the state of the employees within your company. It’s been said countless times before but employees are the most important resource in your company, and having a representative from your HR department sit on the board will allow for the employee point of view to have a strategic say in how the company is run.
Policies And Procedures
Yes, I know it’s boring but, HR will be able to put in place for you all the policies and procedures that you require. As a minimum you must have legislative regulations in place and follow these (for example disciplinary procedures and the right to be accompanied) As a small business the reality is that it only takes one individual to raise a case against your company and it can have devastating effects on your business if a claim is successful.
In the same vein, having consistent guidelines for your employees avoids those time consuming conversations where you haven’t been consistent. Don’t make life harder for yourself, the right policies will avoid the ‘that’s not fair’ scenarios which only take away valuable time which is better spent on running your business.
Not Enough For You?
Numbers talk. HR has a wealth of knowledge and tools when it comes to metrics and will be able to show you in black and white, the financial worth of HR. As a business owner you probably see numbers as a straightforward, proven record of value add to the business. Reporting on key metrics like workforce productivity, recruiting costs, and retention, and creating specific goals and meeting them are sure-fire ways to show how HR are adding value and it will allow them to deliver continuous cost savings to your business.
Predict The Future Company Needs
While no one has a crystal ball, the beauty of HR data and analytics is that they can help predict the future of your company’s personnel needs. The amount of critical data that flows through the HR department can help direct future development. By keeping tabs on productivity and determining how many and what kind of new employees the company will need to hire in the near future and well beyond, HR can provide the kind of forethought that will allow your company to not just survive but thrive in the changing markets to come.
If you enjoy HR tasks then ‘go get ‘em’! However, if you think your role could be better served providing vision, leadership, and helping your team be successful then maybe you should consider the services of a seasoned HR Professional. Here at theHRhub we offer a cost effective online solution: Expert HR advice, software, contract templates, comprehensive library and community forum – straight to your mobile or tablet. It’s like having your HR department – but without the price tag. Find out more here
Photo Credit: Adding To Piggy Bank by OTA Photos