In most small businesses, a modest team of dedicated owners and employees often wear multiple hats when it comes to running the day-to-day activities. From receptionist to bookkeeper to office manager, there are a wide variety of roles that must be performed to ensure success, and when resources are limited, it falls on the entire team to ensure nothing slips through the cracks.
As a business grows, however, the need to hire skilled, task-specific professionals to take ownership of those vital roles becomes a priority. One key role that becomes more important as a business grows and evolves is a dedicated human resources manager. If you’re wondering if it’s time to hire an HR manager, here are four signs that your business may be ready.
Business is growing.
As businesses grow, their leadership needs often evolve. According to the Small Business Association, economic optimism among small business has hit a 22-year high, and 50% have plans to grow or expand their business this year according to an American Express survey. The transition from small business to big business is an exciting time for a company. All your hard work has paid off and you’re being rewarded with growth and success. However, with that growth comes a greater need for structure as you scale your workforce to meet the growing business’ needs. A dedicated HR manager—and eventually team—can help ensure a smoother transition.
You’re not in compliance with employment laws.
According to the Hiscox Employee Lawsuit Handbook, “24% of employment charges resulted in defense and settlement costs averaging a total of $160,000.” Not staying up to date on the latest news and developments in labor and employment legislation can be costly. Hiring an HR manager can help ensure the company always stays in compliance with the latest changes in laws and regulations that affect your business or industry.
You aren’t attracting the right type of talent.
There’s a lot more to hiring than placing a help wanted ad. Reviewing resumes, interviewing, verifying education or certifications, background checks, reference calls, testing, training, and much more are all part of a well-defined hiring and recruiting program. It’s a full-time job that requires a lot of time and attention that can be most effectively managed by a skilled HR professional. In a busy and growing workplace, your ability to attract, hire, and retain the most qualified workers is imperative to maintaining a productive, innovative, and successful business.
You have an undefined company culture.
HR professionals are experts in organizational development and will be able to help develop a positive, unique workplace culture that showcases your company’s values and personality to job candidates. According to a recent Express Employment Professionals-Harris Poll survey, 86% of U.S. hiring decision-makers believe candidates are more likely to apply to a company that has a strong culture, than one that does not. A well-defined company culture is a strategic priority that an HR manager will be able to lead the charge of for your business.
The Job Insights survey was conducted online within the United States by The Harris Poll on behalf of Express Employment Professionals between Oct. 31 and Nov. 10, 2023, among 1,007 U.S. hiring decision-makers.
Last Updated on September 10, 2024
