When you’re an employer, there’s a lot to think about, and you’re juggling competing priorities. HR strategy might get lost in the shuffle, but it shouldn’t. Your HR department can help drive efficiency, protect you from unseen liabilities, and ensure your company provides the right benefits to attract and retain talent. Let’s dispel three big misconceptions employers have about HR and the value that good HR support can bring.
Some common misconceptions employers have about Human Resources:
- Misconception: The operating costs of HR are too expensive, and it’s a waste of money.
- Misconception: HR’s only job is to hire and fire people
- Misconception: Small business owners don’t need HR.
Let’s take a closer look at each of these misconceptions about HR:
1. Misconception: The operating costs of HR are too expensive, and it’s a waste of money.
Good HR support will help find hidden employment costs and offer strategies and solutions for improvement. Investing in HR can reduce the financial risks of employment and ensure your company provides the right benefits to attract and retain talent.
For businesses who outsource HR, the reward can be even greater. A report from NAPEO found that PEOs help their clients save up to 35% on HR administration costs. Additionally, PEOs can help employers save considerable amounts on health insurance and other benefits, all while improving the quantity and quality of current offerings. An outsourced HR program could help you spend less than you would if you managed your HR program yourself.
NAPEO also released a report that shows the annual median revenue growth for PEO users was twice that of comparable non-PEO firms. Increased revenue, and lower HR admin costs? That’s a win-win.
2. Misconception: HR’s only job is to hire and fire people
While HR does provide support during hiring, onboarding, and terminations, a great HR department will be there throughout an employee’s entire career.
HR bridges the gap between you and your employees by handling things like:
- Benefits and insurance
- Payroll administration
- Employee harassment claims, conflicts, or concerns
- Training and education
- Employee recognition programs
- Keeping employees updated on policy or employment changes
3. Misconception: Small business owners don’t need HR.
Whether your company has 10 employees or 500, good HR support is valuable. While you can probably get away with a less-than-defined HR strategy as a startup, these policies and procedures can determine your fate as your business grows. For every size company, there are certain laws and regulations you must comply with or risk penalties. HR matters at each stage of your company’s growth.
Summing it all up
These common misconceptions about HR can prevent business owners from focusing on a valuable asset. Your HR support team can help drive efficiency, protect you from unseen liabilities, and ensure your company provides the right benefits to attract and retain talent. HR services and departments are great partners when building teams, scaling the organization, and shaping culture.
Whether you are starting your business or need to expand, consider outsourcing your HR with the help of an expert team. If you’re ready to connect with an HR firm that will help you grow your business, contact our team at Staff Leasing.