Topic Outsourcing HR / PEO

The 4 Consequences of Insufficient HR Support

The 4 Consequences of Insufficient HR Support

Insufficient HR support means an inability to deal with foreseeable threats to your business' health. Small businesses are coming to realize the significance of expanding the support to their HR staff. A study from Bloomberg Law in 2018 says that the HR staff ratio is at an all-time high with 1.5 HR staff for every 100 employees. Avoid the messy cleanup and consider getting more support for Human Resources.

Learn more about HR strategy for business performance

The Consequences of Inadequate HR

Many small business owners aren't fully aware of the consequences of having inadequate HR, which is why it used to be so common to under staff the department. However, the effects aren't minor ones and can be detrimental to the success of your company. By getting ahead of potential problems and providing your HR team with the support it requires, you protect everything you've worked so hard for from falling victim to these negative consequences. 

Non-compliance with laws leading to potential lawsuits 

A good HR department prevents and protects your company from labor laws that can be unintentionally violated, like Title VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act of 1967, and Americans With Disabilities Act of 1990. Not to mention, there were 72,675 charges of workplace discrimination in 2019 alone.

Bauer Law Group reveals the top six reasons for lawsuits against employers:

  1. Negative treatment
  2. Discrimination of Protected Activities
  3. Bad Managers
  4. Failing to Enforce Policies Fairly
  5. Termination After Positive Performance Reviews
  6. Failing to Respond to an EEOC Charge

It's also worth noting that events surrounding the pandemic have seen employers hit with litigation connected with employees who became sick and claimed safety precautions were missing from the workplace.

Payroll errors leading to employees quitting

Your employees are the foundation of your company, so keep them happy and invested in your company's success. Payroll errors may seem like a small problem to you (especially if the error was a mistake and eventually resolved). Still, it comes across as a cause for concern and unprofessional behavior to employees.

Workforce Institute reveals the fragility of such an error, finding that 49% of American workers will start a new job search after experiencing only two problems with their paycheck. 

Not enough time to deal with employee issues sufficiently leading to disengagement

Employee issues are more common than you may think, and they need to be addressed immediately before causing more significant problems in the workplace. Research has found that 85% of employees deal with conflict in their working lives, and it costs U.S. companies an estimated $359 billion annually.

Employee conflicts can lead to disruptions in the workplace, like decreased productivity, stress, alienation, call-offs, and terminations. Good HR puts out the fire before it consumes the whole business.

Not enough time to strengthen company culture to make the company an employer of choice

Job Seeker Nation Study informs businesses that "culture" is a buzzword for a reason. Forty six percent of candidates believe culture is critical in the application process, 88% of job seekers cited it as at least of relative importance, and 32% are willing to take a 10% pay cut for a good work environment. 

HR’s responsibility is managing company culture and making sure it aligns with business goals.  Adequate HR support ensures goals are met through qualified, motivated, committed, and happy employees. 

How to Tell if You Don't Have Enough Support

You may be wondering if you have enough HR support. Consider these three possibilities when evaluating whether to move forward:

1. Unhappy Employees

If support has been lacking for a long time, then the consequences will become evident.

Is paperwork piling up? Are employees dividing up into cliques, stressed, cutting corners, or complaining? Have you seen a decrease in productivity and performance?

Consider taking preventative measures instead of waiting for harm.

Want to retain more of your top employees? We want to share our secrets!

2. HR rep is overwhelmed with responsibilities

It can be tough to ask your employer for help. Convince your HR rep that they won't be in trouble if they admit that they are overwhelmed and explain that any increased support won't come at the HR rep's expense.

3. Lack of expertise in the office

The problem may not be a lack of time but instead a lack of expertise. This doesn't mean they're not qualified. Even good HR reps may not be able to keep up with dozens of Federal, state, and local laws that apply to your business. Regulations are always changing, and mistakes are easily made. Adequate support ensures your HR compliance is up to date and efficient.

3 Ways to Increase HR Support

If you've evaluated the adequacy of HR in your company and found that you do need more support, these are your options for the next step:

1. Hire another HR rep

An upside to hiring another HR rep is that you could meet with them quicker since the team is typically on-site. However, hiring another HR rep to your team can also be cost-prohibitive. The more expertise you require, the higher the salary expectations and benefits of a job seeker. Also, finding high-quality HR workers in some areas can prove to be difficult.

2. Delegate HR Tasks

Delegating HR tasks seems like a good idea in theory because it saves you from the expense of hiring another HR rep or outsourcing HR. Unfortunately, it takes valuable time from other departments, which may decrease efficiency and revenue. In worse case scenarios, essential responsibilities relating to HR can be accidentally overlooked, leading to detrimental consequences on your business with the law, your reputation, and overwhelmed staff. 

3. Outsource Expertise 

If your goal is to have a trusted advisor that can be called upon whenever your HR rep finds their expertise insufficient to deal with HR problems, outsourcing is the answer for you.

This way, you are dealing with a team of experts with consistent professional experience, a network of contacts, and the ability to save you valuable time by replacing the hunt for skilled HR reps with a team of highly trained experts. Moreover, you can outsource payroll and other administrative burdens to free up time for HR to do the best job they can.

Outsourcing expertise is great for easing your HR rep’s strain with professionals’ support to assist when they're needed.

Don't Wait Until It's Too Late

You've worked hard to make your business what it is today. Don't make the mistake of disregarding the importance of adequate HR support. It's a common misconception that HR's responsibilities are only to hire, fire, and pay employees. In truth, you must have enough support to cover the roles because they're critical in improving employee engagement, company culture, and business outcomes.

HR outsourcing is the most promising solution when it comes to balancing resources. Download our free eBook "How the Right HR Outsourcing Partner Brings You Closer to Your Dreams" and spend more time working on your business, not in it!

How the Right HR Outsourcing Partner Brings you Closer to Your Dreams

Esther Ellington

Esther Ellington

Esther Ellington is the Director of Client Services at Questco Companies. Leading the Client Services and Onboarding Teams to deliver an exceptional client experience from the beginning of the client relationship and beyond.