Some of small & mid-sized companies often assumed that there is no need of Human Resource Department. Especially, managers always have the wrong assumption that they can deal with employee issues themselves. Most of the time,the HR department is taken casually by the people, as they say it is not rocket science, there is no highly technical process involved in managing people. In addition, many companies’belief that the HR department can be extra liability for the startup as there are easy to use HR software for attendance, leaves and payroll.
With this kind of outlook, businesses often made a big mistake. To save some money, they made big losses. Here are some of the pitfalls of operating without an HR department: –
- Not acquiring talent strategically
- Not having the right policy in place
- Not keeping proper records & paperwork
- Not hiring & firing smartly
- High irritation rate
- Dissatisfied employees
Without proper HR department, things can go wrong enough to seriously disrupt one’s business.
Let’s overview with a real-life example; Uber had hired the first HR professional in 2014, when they were already grown 500 plus employees. There were many cases related to bad employee behavior, sexual harassment, etc.Snapchat brought in a senior HR executive to build a department in 2014 after sexually harassed emails written by the chief executive officer were leaked to the press. Web Service GitHub did not appoint a senior HR executive for sharing and collaborating on the code until 2015, seven years after its establishment, when a female engineer openly described a culture of bullying and disrespect for women.
The company now requires it’s about 600 employees to get diversity and inclusion training.When Silicon Valley company finally hire HR staff, they often execute with a handful of narrow priorities in mind: recruitment and retention. If a great performer is harassing colleagues or subordinates, they decide that it is more important to keep him happy than addressingother employee’s concerns. Research says that more than ever before when 85% of all jobs are filled by networking in small industries and are plagued by skills shortages, your company can’t work hard on its human resource issues.
Let’s not commit big mistake, by saving some money!
Be it a Startup or a 500+ human capital company, human resource department should be the one of the most important considerations you have when building your company. It not only builds polices framework, but it also plays a major role in building employee-employer relationship.If your business depends on keeping good people and keeping them productive and happy, then you need someone to do it.HR professional help cultivate & maintain internal workplace culture and provide the needed support when it comes to reinforcing employee benefits. Startups need to understand and realize that HR is more than just a department. It is an irreplaceable part of every successful company that preserves the humanity of the company while you(owner), are busy trying to make your business successful.