Generally, businesses with under 50 employees rarely have HR support in-house. In fact, they rarely have HR support at all. That’s because the CEO, who is also the CFO, doing the work and being the dogsbody, sees it as another extra cost. But without expert HR support, a business can run into a lot of problems, no matter how small they are. They can even fail because of them. So we wanted to drill down into that, and examine 3 reasons why your small business would benefit from HR support.
When Things Go Wrong With Employees – They Go Wrong Fast
In a small business, it sometimes feels like everything happens at double speed, and most of the time it is. For example, if an employee is demoralised or unhappy, feels undervalued to excluded, you’re likely to know about it pretty quickly. After all, as the head of a small business you might well be sat at a desk next to them. But this acceleration means that when a problem does happen with an employee, it’s going to spiral out of control pretty quickly. What if, for example, these negative behaviours are actually symptoms of something much bigger? What if that staff member is actually being bullied or harassed. Within a few minutes, you could find yourself with a big, unfamiliar and very delicate situation on your hands. That’s when it pays to have someone independent and experienced to step in and help you. An external HR department can help you manage those situations properly, and put systems in place to ensure they never reach that point in the first place.
It’s Harder To Tackle Poor Performance When You’re Small
Small businesses are volatile places, and the dynamic is critical. Keeping everyone motivated, performing well and pulling in the same direction is critical to success. If just one person in your business start to underperform, it represents a problem. Identifying and then managing that performance can be a challenge. It would be in a bigger business, but the irony is that it’s much harder to handle poor performance in a smaller business. Most people will naturally shy away from conflict and confrontation in the workplace, with 44% of managers finding the act of delivering negative feedback stressful, some to the point where they will avoid it. But that doesn’t help anyone. But that’s where we can help. An external HR department can step in and provide small businesses with an effective way to manage poor performance, without damaging the essential relationships in small businesses. Because they are an impartial, objective expert with experience in handling people problems, external HR is perfectly placed to implement strategies to overcome performance issues before they become a real problem, and help support staff to improve.
You Can’t Afford Costly Mistakes
Start-ups and small businesses always need to keep one eye on the purse strings. It’s less about choice and more about making sure costs don’t overrun, and every penny spent demonstrates value. But here’s the thing – small businesses can’t afford to make mistakes, and the two biggest mistakes a business can make are hiring the wrong person, and not being able to retain their current, well-performing employees. Employee turnover rates in small businesses can be a real problem, and in fact the research shows that 67% of SME’s in the UK find it difficult to hire qualified people and retain existing talent. So really, investing in HR support to help you in just these 2 key areas will actually save you money in the long run.
It’s really easy to find excuses not to get help and support in a small business, especially when it comes to HR. Excuses are a dime a dozen, usually to do with costs. But when it comes to hiring and retaining staff, dealing with conflicts and managing performance, you can’t afford not to have support there. At AJ HR Solutions, we specialise in providing tailored, affordable HR support to small businesses in the South. We act as an extension of your business, providing support, guidance and practical help when you need it. For more information, just get in touch with us today to book your free consultation.
