Whether you are a small or large business, having effective human resources policies and procedures needs to be a top priority. Small company executives wear a lot of different hats- marketing, accounting, production, and all other functions. Large organizations have a lot of employees and that very much complicates the HR planning process. And, unfortunately, both scenarios increase the likelihood for costly mistakes.
You can do it, We can help
You can find a lot of articles that will explain what small business owners should try to be aware of when being their own human resource manager. I am here to tell you that you don’t have to do it alone, nor should you- here’s why:
- HR problems can cost you a lot of money – Careerbuilder.com did a study that showed that 27% of bad hires results in over $50,000 in losses. Additionally, after doing this study, 36% of U.S. HR managers reported a drop in productivity; 32% reported a negative effect on employee morale; 18% reported a negative effect on client relations; and 10% reported a drop in sales. Last, but not least, if you don’t have a standardized process of documenting performance issues, it could result in a messy lawsuit, costing your company thousands of dollars.
- The IRS wants to be involved – If you have any intention of staying open for any amount of time, sooner or later the IRS will want some information from you. For example, the IRS has been known to target small businesses to determine if they are misclassifying employees. If you have an employee who is classified as an independent contractor, but is actually a full-time employee, you can receive fines and penalties for misclassification.
- Employee retention goes out the window – It is difficult to hire good talent, we all know this. But if you want to hire the right people and retain them, you need good HR policies and procedures. For instance, you need a standardized hiring process that involves a good job description, an interview process that involves multiple people, and retention programs that are best handled by an HR professional- such as benefit support, training and development, and internal advancement opportunities.
I hate seeing businesses close their doors for preventable reasons. Some businesses close because they get sued, and it could have been avoided if they simply kept better records. Now is the time to start preparing your business for an HR overhaul.
SACS Consulting & Investigative Services can Help
SACS Consulting has 25 years of experience in HR practices and we provide HR consulting services to small and large businesses alike. To take advantage of the collective knowledge of SACS Consulting, call (330)255-1101 or fill out a Contact Us.