It has been a privilege working with so many small to medium business owners and managers over the years and seeing their business go from strength to strength.
What continues to surprise me is how many managers have little understanding of employment law. Employment is heavily legislated, fraught with complexities and loaded with penalties for non-compliance. There are far more legal ramifications than any other area of the business, yet how many businesses are lacking an HR team (or person for that matter)? There are often teams of marketers, IT, operations and finance staff but many lack a dedicated HR resource to guide the managers in all employment decisions. It is no wonder so many businesses end up at mediation, the Employment Authority or Court. Sadly, the penalties can be vast and painful for an employer who has failed to follow due process.
HR is a fundamental pillar of a business. It guides, regulates and drives all aspects of the employment journey, from recruitment/selection, the day to day relationship, issue and performance management, learning & development, rewards and termination/exit (be that a positive or negative exit). The reputation of the business is influenced by the way staff are treated.
Instead of seeing HR as a necessary evil, perhaps small and medium sized businesses could embrace it as an essential part of a healthy business. ‘HR does not visibly impact the sales figures’ many often comment. I’d like to challenge that. Good HR practices will enhance revenue in general. Just as different limbs make up the body; HR processes are the skeleton that hold it all together.
In the words of my employment law university lecturer; ‘In an employment dispute, no-one wins but the lawyers’.
So, be proactive - implement good HR practices, don’t wait for the ambulance at the bottom of the cliff!