Overlooking the importance of the Human Resources department is an unfortunate trend in today’s business climate. In many small to midsize companies, it is often that employers believe they can manage HR off the side of their own busy desk. In his article “My SmallBusiness Doesn’t Have an HR Department—Is That OK?”, Chris Lennon speaks to the downsides of not relying on a Human Resources department. In particular, how companies without an HR department rely on senior management to perform HR duties. Lennon includes examples of companies who have made major shortcomings in the HR field, due to their lack of prioritizing the department.

For instance, Lennon mentions the missteps driving service company, UBER. Their CEO, Travis Kalanick relied on a management team to deal with HR duties, and did not hire a professional until they already had 500 employees as they did not want to compromise their growth. This caused problems for the CEO, as the management team prioritized recruitment over issues of legality, ethics, and diversity (to name a few HR areas). This meant that addressing issues such as sexual harassment was not prioritized, and eventually led to Kalanick’s resignation. Lennon comments also on THINX; the CEO of the underwear company also resigned due to accusations of abusive management tactics within the company.

There are obvious risks to operating without an HR department, displayed by the companies above. The Society for Human Resources Management endorses taking on an HR professional when your company or business reaches 15 to 25 employees. Human Resources is a very delicate and practical department; however, it does require time, effort, and resources in order for it to be effective. Since precarious mistakes have a bigger impact on smaller companies, Lennon offers four procedures crucial to know if you are do not have professional Human Resources available:

 

  1. Bring in outside experts to handle sensitive issues.
  2. Know the law.
  3. Use people-management software.
  4. Train your managers.

 

In our “Kiy HR Perspective”, we believe that prioritizing HR is very important, and it shows in the examples provided by Lennon. Whether the HR department is external (such as Kiy HR) or within the company, the issues that arise in the workplace should be dealt with efficiently, respectfully, and in a timely manner through a qualified HR department. Taking on an HR professional early is very beneficial to the company and its employees; however, if you are unable, the four guidelines provided by Lennon offer a precise generalization of an HR kickstart without a professional.

If you believe your company could benefit from a Human Resources department or have any questions regarding what Kiy HR offers, feel free to contact us at info@kiyhr.ca, or phone us at 780-801-5246.

The Kiy HR Perspective

Full article: https://www.allbusiness.com/my-small-business-doesnt-have-hr-department-114005-1.html

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