Why Bother with HR?

What’s the point of HR?  Do you really need someone to spend time (and money) looking at the people in your business? Surely it’s quite simple and something you can do for yourself?

Here are a few ideas to help you decide whether or not to bother with HR.

The cost of getting it wrong.  Without the right HR systems in place, you could end up on the wrong side of the law, with a hefty bill to pay. A majority of employers believe that claims to Employment Tribunals will increase following the increase in the qualifying period of service to claim unfair dismissal from 1 year to 2 years. Part of the reason for the anticipated increase is that there is no system to prevent spurious claims being made to a tribunal. There is no potential downside for a claimant and potential for a financial windfall.  No win no fee solicitors support the disgruntled employee to have a go on the basis that the business will make a settlement to avoid legal costs. The figures of employment tribunal awards in the year 2011/12 have now been released and show that the median of all wards was £4560, the average award was £9133 and the maximum award was £173408. Keeping up to date with the legal issues is vital if you want to avoid unnecessary problems and payments.

The benefits of getting it right.  In order to avoid further claims businesses are making changes to their policies and procedures and making sure their managers are well trained in these procedures because a majority of employers believe that the most important factor behind a decision going against them at tribunal has been the role played by the line manager. In most cases the decision concerns the managers failure to follow their own company’s procedure!  On a far more positive note, good HR can really help to boost the profitability of your business. By putting HR management practices into your organisation, studies have shown that you can reduce employee turnover by 7%, increase sales per employee by 5.2% and increase overall financial performance by 6%.

Do you bother with HR? Do you do it yourself, or bring someone in to help with HR issues? Is it worth it, or just another business expense? Leave a reply below and let us know what you think.