How HR can help your business be more profitable.
Many small businesses think they don’t need HR support. This might be because someone is doing a bit of HR in addition to other responsibilities, their employees are friends and family, or simply because its considered an unnecessary expense. What you may not know is how much value an experienced independent HR professional can bring to your businesses. Here are some examples:
1. It costs more than £5,000 just to hire someone new. HR support can help you make a good hiring decision, saving you thousands in repeated recruitment.
2. Aside from the basic cost of hiring, the cost of lost productivity associated with a new employee is around £20,000. A meaningful induction plan, or even better lower turnover, will significantly reduce this cost to your business.
3. Identifying and establishing initiatives to enhance the working environment will increase employee engagement and engaged employees are 21% more productive and better at driving profit. They also deliver better customer service, increasing customer satisfaction of up to 19%, leading to move repeat business.
4. Up to date HR policies and procedures reduce your exposure to legal risk and associated costs. These are typically start at £12,000 and can be uncapped (plus legal fees)– not to mention the impact of any reputational damage.
5. Using other team members without an HR background to absorb HR, can take up a lot of their time. An experienced HR Consultant will be able to either guide you through how to handle issues more quickly or take it off of your plate entirely, freeing your team’s time up for their core business activities.
You didn’t start a business to spend your time dealing with HR issues but PMP-HR did, so if you would like to find out more about how HR can add value to your business, get in touch for a free no obligation consultation meeting.