Human Resources (HR) is one of the major roadblocks for business owners looking to grow their companies. You need to recruit, retain, and reward top talent to continue your growth, but HR management – from handling employee services to ensuring your company is compliant with all state and federal laws – can be a major hassle.
Sometimes you have to sound the alarm and seek HR help. Here are 3 major signs that you need to work with an HR professional or expand your HR team.
- You’re Spending Way Too Much Time on Admin
You likely were inspired to run a business based on a “big idea,” not to be bogged down in policies, paperwork, and details.
Employing people comes with a stack of HR tasks that can be very time-consuming. In fact, you may find yourself spending more time looking up employment laws or trying to hire a new office manager than engaging in revenue-generating activities.
A good rule of thumb: if human resources tasks are taking up a significant chunk of your time, it’s time to seek HR assistance. A professional can help with talent management and HR operations, so that you can focus less on people management and more on what you do best.
- You’re Growing Quickly
Growing your business is the ultimate goal, but high-growth companies face an HR dilemma. If growth outpaces you and your team’s capacity, then your hard-earned gains can quickly vanish. An HR professional or team is pivotal at this stage. They can help with employee recruiting, training, retaining, and management so that your business has the talent to keep growing.
Another major growth milestone is when a company reaches 50 employees. At this stage, your HR needs grow because you are subject to additional federal and state regulations. You must consider factors like the Family and Medical Leave Act (FMLA), the Affordable Care Act (ACA), and harassment training. When you are approaching or at the 50-employee mark, you will need to formalize your HR to ensure compliance and effectiveness.
- You’re Having Issues With Employee Morale
A more subtle sign you need HR help is low employee morale, burnout and stress . This is usually a sign of one of two issues.
One, your business is growing and your team is overworked. Even your highest performers may begin showing signs of stress. As mentioned above, high growth means you need HR help to recruit employees. This will allow you to add talent to meet your business goals while reducing burnout and boosting retention among current employees.
Two, there are issues with how your people are being managed. When employees think they don’t get the salary or recognition they deserve, when there is infighting among the team, or when they feel a lack of control over what they do, you need to reconsider your people strategy. An HR person can increase employee communication, help resolve personal and interpersonal issues, and develop a comprehensive HR strategy that addresses employee needs.
Whether you decide to hire an HR manager or vice president, work with a consultant, or build out your department, HR professionals can help solve talent management issues and set a people strategy that enables your business to thrive.
Ask us your Human Resources and talent management questions via the online chat tool in the lower left corner of your screen. We love helping companies align their people with their business needs, and we love to share what we know.
