Human Resources

Why HR is important enough to make a priority

Lydia Watson

Do you have a human resources department? If you’re a start-up or similar, then possibly not – as 54% of small businesses go without. While it feels like it makes financial sense to stick to the ‘essential’ functions when budgets are tight (especially when all HR does is hire and pay people, right?), you could be causing your organisation more damage than you realise.

3 reasons you think you don’t need HR – and why they’re wrong

1. “It costs too much”

This is a common one. For companies born out of someone’s spareroom, it can be hard to justify ‘splashing out’ on human resources personnel – especially as the associated costs can stretch to $1569 per employee in your organisation.

Why that’s wrong:

  • HR is strongly linked to business success: when the first “dot-com boom” happened, organisations that hired HR professionals early failed less, and went public more quickly
  • Bad hiring practices cost more long-term: without someone dedicating the time to efficiently and effectively hire talent, you lose out in low retention and poor performance
  • Liability issues and legal can be avoided: from avoiding dispute litigation to making sure employees are properly accredited, you need someone who knows their stuff

2. “It could slow us down”

For fast-moving, high-growth companies, HR could seem like a blocker. That negative impression is widespread, with employees perceiving their strong focus on policy as stopping them from dealing with issues – an assumption that HR blocks progress, and wastes time.

Why that’s wrong:

3. “It’s not important”

This is the hardest to tackle: the perception of HR itself. It’s not seen as a “highly technical field”, with many deciding the required duties can just be picked up here and there. So why would you spend money on it as a function in your organisation?

Why that’s wrong:

  • They manage your most valuable asset: your people are your organisation. Human resources exist for them – and when you think about it, that’s a small price to pay
  • They’re essential for employee engagement: who helps you understand how engaged your workforce is? Who makes efforts to engage them more? HR
  • They can offer a specific strategic function: this is the big one. We believe HR should be considered a strategic function, because high performance comes from your people

HR: how to make it a strategic function in your organisation

The recommendation from the HR experts themselves is that you need a professional in your team once you reach a 15-25 headcount. But with HR traditionally having an administrative function in smaller organisations, with a focus on strategy and wellbeing in bigger organisations only, how do you make strategic HR a reality – whatever size you are?

That’s where we come in. HR professionals have the incredible skill of understanding your business and its people, with crucial insights you need to inform strategy – but our technology supercharges that ability.

Industry-leading language analysis. Shorter, smarter surveys, using the most effective questions – chosen after significant research. An easy-to-use platform, with results you can find definitive actions from. It all comes together for one purpose: to make HR strategy part of your organisation.

Book a demo to learn more:

It’s time to start the conversation

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