Signs That It’s Time to Invest in HR
You should be aware that sometimes an effective workflow doesn’t depend solely on yourself as an employer, but on other internal and external factors as well. The internal factors are the management, the HR department and your most important asset - the employees. Without creating a fruitful relationship between those three parts of the company, there is no chance for success.
However, most of the small or mid-sized companies do not even have an HR team and once they start growing, they will probably experience many significant setbacks on their overall success. At the very beginning stages of a company’s lifecycle, it is reasonable for the employer not to be able to afford hiring a full and quality HR management team. However, by delaying the hiring of a quality HR team, the chances for turnover, internal drama, and even lawsuits rapidly escalates. Still, we realize that it’s not always possible for start off with a quality HR team in the infancy of a business; we are here to elaborate when it will be high time to invest some additional resources into your HR team. Keep in mind that you do not necessary have to hire an HR professional in house, you can outsource and use a PEO or experienced HR firm to consult and take control of ill controlled situations. Here are the signs that you should take into consideration that indicate when it is time to take action.
Obvious Sign #1: There isn’t an effective organization system.
If your company lacks structure and organization, you should definitely let an HR professional take care of these issues. From hiring to firing employees and everything in between, taking care of their needs, monitoring their efficiency as well as directly connecting your employees with the overall improvement of the whole firm, is what an HR manager can provide for you.
To create a certain standard in the company and maintain it throughout the employment cycle is HR’s responsibility, who will prepare a plan prior to undertaking any employee related moves. Instead of waiting for your system to collapse and then let HR deal with it, you should proactively hire an HR manager as soon as you notice these problems getting out of hand.
Obvious Sign #2: You need a proper job description for your present and future employees.
You probably manage a small firm where the employees you have hired are there to do any job they’re told to do and they certainly do not have a specific job description. However, that can only function if you have a maximum of 5 employees. Once you start growing beyond that and start seeing more success, you will need to make some changes in your management system. This is a good time to introduce an HR manager to further create job titles, qualifications, differences in salary, duties, benefits, orientation and an onboarding process. And here is an added fun fact – you need detailed job descriptions to avoid discrimination. The EEOC expects companies to have detailed job descriptions to ensure no one is being singled out or left out.
Obvious Sign #3: You fall behind your competition.
You should definitely do your best in order to stay on top and be the first and best choice for the potential customers who need your services. If the competition pulls too far ahead of you, then you will not even be able to do business or see any success. If you wait until firing someone to start the recruitment process, then you will definitely trail miles behind your competition as you are likely lacking a proactive strategy and now employees as well. In order to find the most talented employees, you have to bear in mind that the process of recruitment is ongoing and shouldn’t stop. Last minute hires will result in employees of lower quality, who come with a higher risk of getting frustrated, quitting and even fired, leaving you back to where you started! And let’s all remember, when you fire someone, unless you have good documentation, you may then be lit up with a legal fire/lawsuit for wrongful termination.
Obvious Sign #4: The employees lack engagement and direction.
In time, you may see how your employees might lose their intrinsic motivation because they will lack organization, structure and other external factors which would otherwise motivate them. Some of these motivating factors include, a pay raise, providing them with extra benefits, recognition of their quality efforts, celebration of personal achievements (i.e. marriage, house closing, new pet, new baby. etc.) and birthdays, or simply treating that employee as an individual rather than a metric.
This is an important task of an HR manager because it requires prior planning and enough knowledge of every employee’s personality in order to do what’s best for each of them. Nonetheless, the HR manager is not everyone best bud and has to balance the fine line of business needs and getting to know someone. Too much information about one’s personal life is just that, too much information and can act as an awkward distraction for others to walk around. As an employer, you wouldn’t have the time to arrange, balance and address such things, so it is always better to let an expert do the job for you.
To sum this all up in a few words… a quality HR team is worth its weight in gold. Often times the cost of failure to use a real HR team results in money lost.