Whether your company is brand new, growing, or celebrating a golden anniversary, it will probably benefit from some measure of organized Human Resources.

Why HR?  Some companies, especially small ones, may not see the need to implement an organized Human Resources strategy.  After all, shouldn’t it be easy to watch over a few dozen employees?  In theory, perhaps, but not having HR can be a dangerous endeavor to companies of all sizes.  It can cause headaches of inconsistencies, wasted time, and legal troubles.

So what are some of the reasons companies consider when choosing to have or not to have Human Resources?

• Cost.  Money is the most obvious factor that prevents companies from forming organized Human Resources.  You see, a Human Resources Department requires staff to run it.  These new staff members and the employee programs and services they implement can cost upwards of $1569 per employee.  Larger companies may find these expenses well worth the protection and consistency provided by organized HR.  But smaller companies may have a hard time justifying spending money on new employees to take care of their existing employees.
• Management.  While adding HR staff means having an extra hand to care for existing employees, someone must also care for the new HR team.  This means additional responsibilities for managers who must supervise these new employees, as well as additional work for departments that must play a role in HR programs and services (such as Finance).  The company’s existing resources must be able to absorb this extra work or hire yet more staff.
• Recruitment.  Screening and onboarding job candidates can be a lengthy and detailed process that requires specialized knowledge.  Recruiters need to know how to use the right interview questions to find the best candidate, while remaining aware of potential discrimination issues and illegal interview questions.  And the process doesn’t stop there—it should include a thorough background investigation, then an introduction to the company and its policies.  Without HR personnel, this task inevitably falls to the company owner or manager, who could otherwise spend time driving business results.  Managers who oversee recruitment may not pose much disadvantage to a small company that doesn’t hire often, but it can be a huge time vortex in large companies with lots of employees.  HR personnel can take over the hiring process and let owners and managers focus on the business.
• Employee Relations.  Without Human Resources, who will act as a bridge between employees and management?  Who will ensure employees are satisfied with their work and compensation?  HR offers employees a safe place to vent their frustrations and explore grievances, as many employees don’t feel comfortable discussing these issues directly with their supervisors.  HR can also serve as a barometer for employee satisfaction and can work to change or implement programs that increase morale and productivity.  Without this communication conduit, employees may become bitter and look for other opportunities—while earning the company a reputation for poor employee relations.

While it’s safe to say every company can benefit from organized Human Resources, cost and staffing structure may be prohibitive factors to hiring in-house Human Resources personnel.  So what’s an effective compromise?  Look to a knowledgeable HR consultant!  A Human Resources consultant can offer all the benefits of HR staff without the prohibitive factors of in-house team members.

And who better to meet your company’s HR needs than YES! Your Human Resources Solution, Orange County’s premier HR consulting firm?  Our team is supported by solid testimonials and more than 20 years of HR experience.  From the little HR issues, such as exempt versus non-exempt status, to the big issues, such as company HR policies and salary and compensation structures, we’ll help you establish a solid HR foundation that will work with your company as it grows and changes.

Let us handle your headaches!  To find out how we can get your company’s HR strategy on the right track, visit our website or contact us for a free consultation.