For start-ups and small business units and entrepreneurs, it can be a tempting option to manage their HR operations on their own and avoid having an in-house human resource team on site all day, every day.
However, with success in business comes growth, and as small companies grow and expand, there comes a point when the HR management requirements become more than an add on’ to someone’s main role. It’s important to look out for the signs that the point might be being reached where HR advice and assistance might need to be structured and delivered differently in order to properly support growth and minimize organizational and reputational risk.
But how do you know when is the right time to need to transition your HR functions to another way of operating? And what might that new model look like?
Here are three simple, early signs that should make a business owner begin to think about how HR might be provided into the short to medium term future.
· Your core operations are taking a backseat
From recruiting and selecting employees to maintaining employee relations and safe and healthy working conditions, training and developing staff, managing – increasing numbers means increasing time needs to be ready and able to be applied when needed to HR issues where and when they arise.
If you are beginning to feel like you’re too absorbed in HR and administrative functions at the expense of your core operational responsibilities, it’s time to consider how to bring in outsourced HR assistance and free up time to focus on your ‘day job’.
· Compliance is a struggle
With employment law, award rates and employment arrangements often constantly changing, compliance remains a major concern for many businesses. Keeping up with the latest rules and regulations is paramount to running a business seamlessly and minimizing risk and the costs associated with non-compliance – both financial and reputational.
Failing to know and understand employment laws, industrial frameworks and their application and the regulations that relate to and impact upon your business can have major implications in your business operation – in terms of time and money. Proactively establishing a tailored HR function that can move swiftly to draw on a combination of outsourced and in-house expertise to ensure proper compliance and address issues before or as they emerge while enabling the business to continue operating efficiently and effectively is a vital element of risk mitigation and business continuity planning – even for small to medium sized businesses. Our experienced consultants can provide this type of specialist assistance with a wide range of HR elements via our human resource consulting services located in Melbourne, Sydney, Brisbane and Canberra.
· Hard to find the time to orientate new employees
For established businesses with a dedicated human resource department, orientating new employees may not be a concern, but for start-ups and small companies that manage HR function on their own, it can be hard to find the time and resources to ensure that all new employees are properly orientated into the business before they get started.
By outsourcing aspects of orientation policy, procedures and training to an HR firm, you can ensure that you have an up to date, tailored training and development program in place when you need it as new employees commence. Outsourcing this and other HR functions to an external, professional HR consulting firm can go a long way to ensuring that, from day one, new employees know what is expected of them, what the company is about, and how to meet their obligations to the company. An experienced and external HR firm can help build a robust and comprehensive human resource strategy that provides a start to finish HR pathway for the employer and the employee to maximize the opportunity for the business to run smoothly and effectively.
HBA Consulting Blog 