Advantages & Disadvantages of Not Having Human Resources
There are many solid reasons not to have an HR professional on your staff, and other convincing reasons to hire HR personnel. It's not a decision to make lightly; the consequences of hiring HR or not can dramatically affect your business. After carefully weighing some of the pros and cons of not hiring human resources staff, you'll be able to make the decision best suited for your business.
Here's a conundrum: Not hiring human resources personnel can save your business quite a bit of money, and not hiring human resources personnel can cost your business quite a bit of money. This riddle lies in statistics: According to the U.S. Department of Labor, Bureau of Labor Statistics, the median salary for human resources managers in the U.S. was $99,130 as of May 2011. ARS Background Screening reported that as a result of employee lawsuits in 2010, the amount of money received from employers by the Equal Employment Opportunity Commission on behalf of plaintiff employees was in excess of $404 million. An important role of a trained HR manager is to keep your business in compliance with employment laws and practices, so It potentially could cost more to not have HR personnel than it would if you hired someone for the position.
Not having human resources may allow you to interface directly with employees anytime an employment issue arises. You may find these communications rewarding, as might your staff. Conversely, these daily interactions may require a chunk of time that you as business owner or manager simply don't have. Not having HR personnel on staff can result in a downturn in morale if employees feel they have no one they can talk to about work-related issues.
A benefit of being the owner or manager of a small business is the hands-on aspect in every facet of the business. If you have no employees other than yourself, not having HR makes perfect sense. If you have one or more employees, you will need to personally handle the interviewing, hiring and firing, and must process of all the paperwork associated with these functions. Not hiring HR personnel to assist you in taking care of these important aspects of business could negatively impact your daily workflow.
As a business owner or manager, you seek the best employees you can find to fill open positions. Keeping these employees happy and contributing to your business requires ongoing training and coaching. Retaining good employees is a high priority in business; the cost of losing them and hiring replacements may not be something your business can absorb. Employing an HR professional will enable you to concentrate on other important aspects your business.