Is Human Resources (HR) a valuable asset or just expensive paper work?
As an HR consultant I’m often asked if HR really has any place in a business, let alone a small business and if it’s just expensive paperwork that gets in the way of doing real business? To answer this question, over the next few months I’m going to invite you read about various HR related topics, the different areas of HR, what they do, the costs of using it and the costs of not using it and let you decide whether HR is expensive paperwork or an important asset that every business should have access to no matter how big or how small.
This month’s topic will touch on Employee Relations (ER), as we discuss the importance of employment contracts.
When your small business starts to grow you may start to hire new staff, which is an exciting development. Managing staff however, creates many new situations and demands which you might not have encountered before, even if you have managed people before. Dealing with the paperwork, decisions and legislation involved in human resources can be time consuming and confusing, not to mention the financial risk involved if anything goes wrong.
Similarly many small businesses in this position believe that not having anything in “writing”, such as a contract means they can have more flexibility in how they operate, especially because it’s easier to move the bad employees on right?!?