In an interview, former CEO Lawrence Bossidy discussed the growth of the technology company AlliedSignal (now Honeywell). He said that planning was key, “but at the end of the day, you bet on people, not strategies.”
No matter the industry you are in, your operations count on employees to carry the company to its goal. It’s for this reason that Human Resources (HR), the one aspect of your organization that is directly concerned with your people, should not be overlooked.
With the proper HR services for your small business, your organization will grow more efficiently. The following ways should tell you how.
1. Optimize Workflows
There’s more to HR than just hiring and firing and employees. There’s payroll, employment benefits, performance reviews, disciplinary measures, and the paperwork that comes with having employees.
In ADP’s Ad Hoc Human Resource Management Study, 54% of small businesses handle employment matters internally to save money. Rather than getting HR outsourcing solutions, many choose to take away time that they could have used to focus on sales, technology, and other functions.
As an entrepreneur, you can’t afford to give more work to the small team you have. With HR outsourcing services, you and your leaders can focus on more impactful projects, while the experts take care of the needs of your employees.
2. Minimize Legal Risks
In the same study by ADP, employees who take on HR duties simply aren’t up for the job. Almost 70% of the sample businesses add HR onto the workload of employees with little to no experience in workforce issues. This is a major concern, because a workplace slip-up could result to a breach of employment laws, and lead to a series of fines or worse, the closure of your business.
HR services protect your employees as well as your brand. Whether you want to establish your own HR operations internally, or get HR outsourcing solutions, you can expect HR professionals to be well-versed in workforce regulations.
3. Employee Retention
Employees use company resources, gain experience, and learn how to do their jobs better with time. Not only do you lose another pair of hands in an employee fallout, but you also slow down your operations by starting from scratch with every replacement.
It’s in this area that HR services for your small business can be invaluable. Assisting in supporting and retaining your best employees, HR helps to ensure that employees are content within your company. Through programs, good communication skills, and mediation, you can promote a healthy work environment.
No matter the size, a business’s growth is determined by the people behind it (maybe that’s why we call it a company). With that said, getting someone to prioritize your people should not be the last thing on your list.