HR - The Business Case

Whilst I see a lot of posts on LinkedIn and indeed am guilty of writing some of these myself stating that businesses of any size need an HR resource, a lot of these seem to focus on the fear factor, i.e. you'll breach employment legislation if you try and manage things on your own. Whilst this is a valid point and indeed I do work with clients who perhaps have had their fingers burned whilst trying to manage a difficult employee issue without professional advice, there are far more benefits that HR can bring to a business and it's worth pointing these out.

We know every trick in the book

Whilst you may not be familiar with a disciplinary hearing or a redundancy process, we have been there and got the T shirt. This means that we have also vast experience of most situations and can think quickly, already have a plan B and know what to say in a meeting.

Recently I was working with a client who asked me to sit in on some redundancy consultation meetings. He was particularly worried about one employee who was to be accompanied by their union representative. There was a point in the meeting where the union representative mentioned something in passing which related to a clause in the employment contract that the employer had opted not to enforce. I immediately picked up that the employee was concerned that this would be enforced and therefore we were able to use this as a point for negotiation. The employer had completely missed this inference but it led us to reaching a mutually agreeable solution for both parties.

We are people experts

People are a resource in any business. An extremely important one and in the words of Richard Branson your employees are more important than your customers. Whatever you think of this statement if one of your company vehicles broke down would you google how to fix it and attempt this yourself? This would be likely to take a lot longer to fix and you could end up making the problem worse meaning the vehicle was out of action for longer. Hopefully you would call in a mechanic. It's fundamentally no different. We know what we are doing, can quickly fix the problem and we have a great network and can source the best deal for anything that needs to be 'bought in' e.g. employee benefits, occupational health, HR software etc.

It saves you time

You started your business because you are an expert in .........

You are the face of your business, the one every customer wants to speak to and you frequently find yourself switching cogs because lets face it whilst you might have a loyal and hardworking team of employees, they don't have the same vested interest in the business being profitable that you do. So you spend your day being pulled in a variety of different directions and making what feels like every decision no matter how small.

Is this really the best use of your time?

Imagine what you could be doing if someone came in and took the day to day people administration off your hands? You could be strategising, planning world domination or merely doing the parts of your job that you enjoy, the reason you set up your business in the first place. Ultimately making your business more successful!

The numbers add up

Imagine a world where Jack, who has worked for you for 10 years came in on time, didn't take at least 10 days off sick a year and was actually working to full capacity when he was in the office. Imagine the rest of the team not feeling demoralised by the fact that Jack gets away with this behaviour and spending at least half an hour a day moaning about it in the kitchen.

Here is a rough calculation of what Jack is costing your business each year.

Annual salary £30,000

Daily rate £115 x 10 sick days £1,115

Average loss for Jack being 15 mins late each day £996

Loss of productivity each day £7475

Loss of productivity of the rest of the team £7,968 based on 30 mins today and 4 team members earning the same as Jack.

Total in money you are paying people for no return each year £17554

Now imagine a world where this time is not lost.... how many extra sales would that generate? How much more capacity would you have to take on new clients before having to recruit an additional member of staff?

Compare this to the rough cost of employing an HR Consultant for 2 days per month for a year which on that level of retainer equates to £7,200 per annum.

It's a no brainer really.

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