Why is HR Important For Small/Medium Businesses?

Other indicators include when:

• Errors start to occur, for example, compliance requirements are missed;
• The business faces a period of significant change or growth;
• You’re simply unable to keep up with day-to-day HR processes as well as your other work;
• HR processes take up the majority of your time, leaving you unable to focus on strategy-level work.

When you reach this point, it’s time to seriously consider appointing a dedicated HR person or team.

As a small business owner or manager, you’re used to wearing many hats. Not only are you responsible for strategic oversight and leadership of your business, you’re also heavily involved in day-to-day tasks, especially when it comes to HR.

But the scope of HR functions, even for a small business, is vast. It can quickly overwhelm your time, and you might find yourself spending hours on HR paperwork and administration. You barely have enough time to make sure nothing is slipping through the cracks, let alone focus on developing and growing your business.

Unsurprisingly, having enough time to do everything is one of the top five worries for small business owners.

Even small businesses need some kind of HR presence. There are a number of things that human resources professionals can do for a business that other employees just can’t. You’ll save time – and likely money – in the long run by using HR from the start.

HR helps you find the right people to work for you. It helps you keep those people engaged and happy. It helps you implement the policies, infrastructure, and benefits that set your people and your company up for success.

To put it in the simplest possible terms: HR is important because it sets up your employees, and therefore your company as a whole, for success.

HR is the force that drives the processes, workflows, policies, and expectations that determine how people do their work and how people enjoy doing work at your company.

If you are still not convinced that you need HR for your small business, then here are some of the most prominent reasons why you do. HR is an investment in your business and your employees.

So, what are the key advantages of using an HR Consultant and how can they help you and your business?

• Providing you with advice and support

HR Consultants can provide general advice or specialist advice.  ‘Generalists’ can help you with the full range of HR Services, whereas a ‘Specialist’ may be a better option if you have a specific task you need help with.

Your HR Consultant can offer you as much support as you feel you need, especially in areas you don’t feel confident in.  They can sit right next to you and support you through processes at your premises, or provide remote advice and support, for example via email or phone/Teams/Zoom conversations.

• Giving you peace of mind so you can sleep at night

This is so important for business owners.  Not all people related matters are straight forward; some can be complex and risky.  Your HR Consultant can support you through them – helping you as much or as little as you need – giving you the correct and legal advice thus giving you the peace of mind that everything is being done and correctly.  In addition, of course, protecting you and your business.  This is a weight off many business owners mind!

• Providing an external and independent perspective

Sometimes you can be so wrapped up in the problem, that it is difficult to see possible solutions. Your HR Consultant can provide a fresh pair of eyes and may identify alternative solutions. They also provide independent, unbiased advice with no previous influence or tarnished perspective.

• Ensuring you are legally compliant and reassurance their advice is up to date

HR Consultants ensure that their own knowledge and development is up to date so you can ensure you are being advised on the latest HR developments, case law and legislative changes.  As an HR professional, I spend a lot of my time reading, researching and attending seminars to keep my knowledge and skills up to date and relevant.

Your HR Consultant can also pass that knowledge onto your employees:   providing training or just talking through ways of dealing with some of the more common HR issues.

• Saving you time and allowing you to get on and run your business

I know from working with my clients that as well as peace of mind, saving time so they can get on and run their business is high on their list of reasons why they use me as their HR Consultant.

You can seek advice from your HR Consultant without them being hands-on or you can have them in your business like an additional member of your team.  Alternatively, they can lead a specific large project for you or write your policies and procedures.

Either way, that valuable time saved is yours to use running your business

Questions to ask if your small business needs to outsource HR

Generally speaking, the top three reasons cited for outsourcing HR are: access to up-to-date skills and knowledge, gaining better-quality support than the business is currently able to offer in-house, and saving money.

• Do my employees have current Company Documents; ie Contract of Employment, Staff  Handbook and Statutory and Key Policies?
• Do I have a high staff turnover rate? At a time when staff retention is key for any growing business, why are my staff leaving?
• Are my staff records up to date and are they being stored properly? Rules surrounding the content and storage of employee files and the way businesses handle them are strict
• Do my employees have up to date Company Documents; ie Contract of Employment, Staff handbook and
• Am I recruiting new staff as quickly as I would like? Do I need help with staff recruitment and retention?
• Is there a performance review process in place?

Outsourcing your HR can save you time and money, we will support you to protect and support Your Business and Your people.

We know how time-consuming HR can be, getting it wrong can be costly and disruptive to your business. Employment tribunals are on the rise, it’s a worry for SME’s who don’t have the time or money to go through lengthy court proceedings.

Navigating employment law is a specialist area that requires specialist skills. By outsourcing your HR, you get the benefit of a qualified and experienced HR expert without the expense of an in-house HR department. We will take the time to really understand your business, helping you make the best decisions for your company and employees.

Employing someone of equivalent experience could cost you as much as 10 times more.

We guarantee to;

  Keep you on the right side of Employment Law

  Save you Time & Money

  Positively Automate & Streamline your Processes & Systems

  Provide Creative Solutions in relation to any People Issues & Resolution

  Help you Hire the Right People

Get in touch now with Dee Newton Our HR Business Partner/Consultant on 07852 151113 for a Free No-Obligation 30 minute chat!