3 Key Reasons Your Business Needs HR Support
We often hear smaller business owners questioning if they really need HR support, perhaps thinking in-house HR can’t be justified until the workforce is larger. Equally we encounter larger businesses whose growth has exposed gaps in their HR systems and processes.
In both small businesses, and larger organisations, owners and supervisors are often tasked with employee management due to lack of a dedicated HR resource. When everything is going smoothly, this works well and is a great use of internal resources, promoting a positive team culture and providing opportunities for development.
However, navigating some of the more complex situations within the workplace, such as dealing with bullying and harassment claims, performance management, or firing an employee, can be difficult for those without experience in these areas. Not only does it put pressure on these managers, if proper process is not followed when dealing with some of these issues, the business can be exposed to unnecessary and costly risks.
We are often approached by businesses during these difficult times to provide outsourced HR support and solutions to these more complex issues. Here are 3 key reasons businesses would use outsourced HR support:
Reason #1 Risk Mitigation (HR Compliance)
One crucial aspect of good HR is that it can help to reduce the risks and potential costs associated with otherwise mismanaged employee issues.
Managing grievances raised by an employee regarding the behaviour of another may seem fairly straightforward, however depending on how serious the complaint may be, and whether it is properly dealt with, this could escalate in ways that could cripple the business. An injured worker may argue that their workplace was unsafe or they weren’t properly trained.
Ensuring regulatory compliance, such as documented procedures and policies, provides protection to your business by clearly setting out expectations and indicating your stance on anything from bullying and harassment, to safety, privacy and acceptable use of IT and social media. This goes beyond simply writing a policy or work instruction, and ensures that the message is both received and understood throughout the business.
Reason #2 – Hiring and Firing
Good HR help will find the right people for your business and better prepare these new recruits for success in their roles, reducing the costs (and frustration!) of a new employee ‘not working out’. Remember – “hire hard, manage easy” – there’s lots of useful tips in our other blogs and social posts.
It is perhaps inevitable that sometimes employees will need to be let go. Of course, there will be good reasons to let them go, but it is crucial to take into account the process required under the Fair Work act. If not handled properly, that employee could make an Unfair Dismissal claim or even more challenging, a General Protections claim – which has no limit to the amount you may need to pay out to this person. These are potentially very expensive pitfalls for employers when ending employment, around which an experienced, outsourced HR practitioner will skillfully navigate
Outsourcing HR can be beneficial for many areas of employee management, from recruitment through to ending employment. By leveraging the experience and knowledge of a HR professional, business owners ensure that the processes involved in these critical stages of the employee lifecycle are not only meeting their legal obligations as an employer, but also supporting the bigger objectives of the business – without incurring the cost of hiring that resource in-house.
Reason #3 – Team Culture
A solid and sound business culture will not only support your business through critical growth phases, but also help to accelerate revenue and successful outcomes for the business. Culture goes beyond providing workplace benefits or perks for employees. Creating and maintaining a team culture that effectively contributes to business success takes a multifaceted approach.
Utilising an experienced, independent HR specialist in your overall business strategy will contribute to business success through effectively managing employee issues, minimising risks, and implementing processes and programmes to promote a positive team culture.
Any size business has a lot to gain from good quality HR management. A good HR partner in your team can handle everything from complicated termination concerns to helping the business owner understand which documents need to be in place, but that doesn’t mean a need to hire an HR manager. We recently posted about how outsourced HR can help your business and the benefits of this flexible model. The key is to find the right HR solution that fits what you need, and can grow along with your business.
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