Every entrepreneur ends up wearing multiple hats in the early stages of building a business. It is at this time that funds are scarce, and you will be forced to find more corners to cut. You may question the need of a budding business such as yours, comprising a handful of employees, to have a HR department at this point. Surely, you could manage without one until the size of your team grows into a double-digit figure? Your decision to not have a HR team would seem like a great idea when it comes to the economics of running a new business, but how is It going to affect the way your business grows? As an answer to these questions, here are a few reasons why it is advised to have at least one member taking care of the HR needs for your business.
1. To help comply with employment laws: Everybody tends to fumble in the beginning. You may hire somebody in a hurry and upon realizing that they are not fit for the role, you might want to let them go. What if the person you are firing sues you for unlawful termination? The last think you want on your plate, just when things are just starting to fall in place, is a lawsuit. A good HR personnel would know the employment laws of your country thoroughly and will be able to guide you in making decisions that don’t put your reputation, as well as that of your business, at any form of risk.
2. To hire the best talent: Hiring is a long drawn out process that not everybody takes to unless they have the passion for it. Imagine sitting at your desk and sifting through countless resumes, posting your job openings across numerous platforms on the internet, answering queries that your potential employees may have, setting up time and place for interviews, and being the one to interview all the candidates who show up! Wouldn’t it be wise to delegate all these to an expert in the field so that you can focus on other matters that demand your attention? Also, most HR professionals are good at reading people, which will ensure that you hire the best talent out there!
3. To help set your company culture: In today’s fast-paced life, it doesn’t take long for a company to grow and expand, both in terms of its employees as well as the volume or diversity of work it handles. While you are focused on growing your business, you may not be physically present at your office every day to set an example for your employees, especially when it comes to company culture. Who is going to make note of employee feedback or, in the worst case, grievances? If they are not addressed properly at the right time, it could reflect on your company culture as well as the overall mindset of your employees.
4. To help you build a successful business: Dreams of building a successful business tend to remain mere dreams if one doesn’t have a certain amount of foresight and some long-term vision. However, one too many entrepreneurs overwork themselves and burn out before they can see their dream turn into a reality. To prevent entrepreneur burnout, delegating tasks such as drafting leave policies, keeping track of employee attendance, and other day-to-day activities will only help you give your 100% to what you do best.
Once your team is six to eight people strong, it is advised that you hire a HR professional who will take a load of work off your hands. It would definitely turn out to be an investment you wouldn’t regret at any point.