Should HR even be a part of the business plan? I am sure we can do without it. What does it stand for? “Human Resource”? No way I am putting money in THAT, I am already paying people!
If you’re a small/mid-size company, I am sure these thoughts must’ve crossed your mind. Let us help you clear some air and put this into perspective.
Small businesses, especially, come to believe that because their workforce is less, they do not need an HR. But even if you have a single human resource – one single employee – effective HR management is the backbone of your company as you grow. More so if a small business needs to grow rapidly. Employees drive your culture and your performance, and hence it is imperative to set the right expectations from the 1st employee, as the legacy carries on.
HR (Human Resources) is like any other department – sales, marketing, operations. HR can calculate a good return on investment and is not just a cost-centre. What sets HR apart is the way it deals with resources which are, in its case, people.
It’s important to understand that there is a difference between machines and people. Not just for moral concerns, but even for economic and efficiency, which is directly proportional to your businesses success or failure. This is where HR adds value, especially in small and mid-sized companies. From hiring skilled people, training and developing them to be a productive part of your company’s ecosystem; confirming their smooth growth up until termination, ensuring they respect the HR policies, company values and culture and a lot more which builds the organization.
HR isn’t about delegating workstations to people or giving salary slips. It’s much more than that. It’s managing your most precious resource which is pivotal in the success or failure of any endeavor – people. Employees represent your company, be it one or one hundred. Hence, recruiting and aligning talented people on the vanguard who complement the organization’s culture is key to ensuring success with a happy and productive work environment.
Have you ever heard of burnout? Yes, it’s a real thing. As a small business, say you are happy with one of your employees as they are working at an incredible pace. To keep them happy, you promote them with regular bonuses as they continue with the phenomenal efforts. But eventually, what if they just stop performing the way you want them to. Or worse, leave the organization for reason’s like “I need a break.” – this is burnout. And burnout isn’t your friend. It causes stress, reduces efficiency and can also cause mental health issues for the employee. HR, on the other hand, comes in to help maintain the work-life balance of such and other employees so they avoid killing all motivation to work and therefore can be retained as they produce the best results for you.
Most importantly, employee issues and consent are two major concerns which can turn out to be a severe challenge to small and mid-size businesses. There are laws which can be easily turned against a company in cases of disputes. HR recognizes these various laws and their implications to help you keep away from any trouble.
Such issues or lawsuits can seriously injure small or mid-size businesses as they do not have the time nor the resources to forge a battle of law. Good HR support can highly reduce the occurrence of such anomalies and ensure a smooth running and constant growth of the firm.