There are many reasons why small and medium sized businesses need HR, but we thought that we would cover our top 5 reasons. We are sure they won’t necessarily be the reasons you are expecting…
1. Growth 🚀
Many businesses that we work with have ambitious growth plans and this can be an incredible exciting time but also a time that comes with significant growing pains. Having strategic HR direction throughout a period of growth is a must to ensure that your team and structure develops and grows with the increasing demands of the business.
The benefits of having a fully engaged workforce can be quite profound on the performance of a business, but this works in equal measure the opposite way around. Having a HR strategy which promotes engagement requires expert support and direction which is often more beneficial coming from an external HR consultant who can take a holistic and unbiased view of the business.
In a market whereby the cost of recruitment is so significant, retention is essential if you are keen to increase productivity, team morale and reduce those oh so expensive recruitment costs. A retention plan will consider several factors which come together to support with engagement and performance.
4. Save money 💵
Being fully compliant from a HR perspective will ultimately significantly reduce the risk of escalating employment law matters getting out of hand. The average cost to a business of going to tribunal is £8,500 according to the British Chamber of Commerce. This can happen to any business, even the ones with very happy teams and close relationships can be vulnerable if they do not have the correct HR documentation, processes, and procedures in place.
5. Save time 🕰
For small and medium sized businesses, quite often the responsibility of HR can fall on the shoulders of the business owner or senior leadership team. Without specific HR experience to call upon, HR matters can soon start to eat into your productive hours which could be better spent on leading or growing the business.
Hiring a HR Manager is expensive with the average salary circa £52,525 for many small and medium sized businesses this full time presence is too expensive and unnecessary on a permanent basis.
However, if you can relate to three or more of the above points, please feel free to contact the team to discuss the benefits of having an outsourced HR team which can scale up or down depending on the needs and budget of your business.