An overwhelming amount of small business owners are trying the “Be Your Own HR Department” strategy as a way to save money. Usually this stems from just a pure lack of resources to procure a human resources professional to man such a position. Let’s face it, when you are building a business, having HR, any HR, seems like a luxury that you can’t afford. Can you afford not to have it? There are some very important reasons to pay attention to HR issues in your workplace, no matter how small you are. There are also financial reasons why putting it off can cost you a lot more than your profit margins.
While having an HR professional in your workplace is not a legal requirement for running a business, there are employment and labor laws that do need paying attention to. In a small business, workplace safety also falls under HR and if you have the type of business that involves OSHA standards, you can be paying a lot of fines for just not knowing what you should know about current workplace safety, according to the US government. If you don’t like shelling out cash for needless expenses, OSHA fines shouldn’t sound too good to you.
Non-Legal Reasons You Shouldn’t Be Your Own HR Department
If you feel as though you have a handle on the laws surrounding employment, you might feel like you have a grasp on what needs doing. You probably do have all the mechanical things in place around being your own HR Department, but there are other reasons being a one man/woman show is not a good idea. For situations that may or may not involve a court, pay attention to the reasons below and consider why they are critical to your business’s success.
Unhappy Employees Love Social Media. When employees become frustrated or disgruntled in a larger business, they are usually going to their HR representative to get a resolution or at least some guidance. In a small business situation where the issue at hand may very well be you, your employee is highly unlikely to take the issue up with you.
The worst case scenario in a situation with an employee who is unhappy with the small business owner they work for is taking the issue to that individual and having it ignored or made worse. When employees feel as though they are not valued or heard, they leave. These days when they leave, they also get on all their social outlets and start telling the Internet what a lousy boss you were and why your business is a terrible company they used to work for. They may even throw in some character assassination for good measure. Do you want that kind of press? Can you afford to have to deal with the PR fallout that may ensue? Large companies pay close attention to what is said about them on the Internet for a reason; it really does matter when someone complains about your business to their social channels.
When your prospective clients comb the Internet looking for reviews on your business, the last thing you want them to see is something like this. Be careful how you address things and better yet, provide a place for your employees to take their issues and have them rightfully resolved.
HR Software Does Not Account For Human Issues. There some lovely software and cloud solutions out there that are purposefully driven to appeal to the small business owner when you are trying to be your own HR department. They help you select benefits, create forms, provide an onboarding and offboarding process, and store all your HR information in one place instead of in scattered folders all over your desk. The problem is, they don’t handle the human side of HR at all and these are the issues that can wind you up in the most trouble. Taking care of paperwork is one thing, taking care of your employees is another. If you don’t know how to be your own HR department without an HRIS, you won’t be able t do it with one either.
The Biggest Reason To Not Be Your Own HR Department
Harassment In The Work Whether Real Or Perceived Needs To Be Dealt With. Being in a situation where an employee is claiming harassment either by you or an employee of yours is a very dicey situation. Handling it well can mean the difference between someone having to leave your organization and you winding up in court because you didn’t do what need to be done. Oftentimes, if you are trying to be your own HR department, you can do everything wrong in resolving it without even realizing it. A qualified HR professional knows how to deal with these delicate issues in a way that mitigates lawsuits.
Why A PEO Is A Better Solution For Small Business HR
When it comes to spending money on HR solutions, benefits and avoiding the pitfalls of DIY HR, a PEO is a cost effective and solvent solution to the woes that befall a well-meaning small business owner who wants to take care of his or her business and employees. They provide all of the above things that are needed and lacking in a typical small business environment who does not have an adequate HR solution. There are many choices in PEOs though and not every PEO will fit every small business owner’s needs. Talk to a qualified PEO broker today and fix your DIY HR issues today.