The Negative Impacts Of Not Outsourcing HR Administration For Small Businesses


You may have a great little business that is thriving, but as the organisation grows, so does its needs. Once you reach 10 employees, you should be engaging the services of a local HR agency and failure to do so could result in any number of negative impacts on the business.Here are some common issues that can arise in a business with zero HR input.

  • Internal Conflicts– People are unique and without clear guidelines regarding behaviour, internal issues can easily arise. It might be that one particular worker has a negative attitude, which upsets other employees.If you take advantage of small business HR consulting service, internal disputes can be quickly settled
  • Inadequate Staff Allocation– If you don’t have anyone managing your workforce, a couple of absentees is all it takes to put you in a spot where you can’t get the work done in time. Perhaps one of your drivers booked their holiday but no one made a note of it, and you are suddenly faced with a driver shortage. A workforce of more than 10 employees must have someone planning for the future. People can fail to show up at work for many reasons and having a back-up is important.
  • Accidents In The Workplace – If you have no employees handling health & safety, this increases the likelihood of an accident occurring at work. Every employer knows how important the government takes health & safety at work. This happens to be one of the services offered by an HR agency. It gives you peace of mind, knowing that your company is fully compliant with the many health & safety laws.
  • Poor Customer Service – One of the most important aspects of every business is customer service and without regular meetings with staff, morale can suffer and this can lead to poor customer service. These kinds of issues can be avoided and if you have unhappy customers, this is something to remedy as soon as possible.
  • Payroll Issues – Of course, your employees expect to be accurately paid. Nothing brings down morale like payroll issues. If you are finding it hard to manage your payroll, talk to the HR specialist. There are companies that offer many services to small businesses, including payroll, workforce management, employment law and health & safety.
  • Unfair Dismissal Claims– This happens a lot more than you would think. A company terminates an employee’s contract, yet they have not followed the strict guidelines and as a result, the former employee files a claim for unfair dismissal. You may be within your rights to fire someone, but if you have not followed the protocol, you will likely have to compensate the worker. When you are the client of an HR agency, you have 24/7 legal assistance from qualified employment lawyers. Essential when you are informed of an ex-employee filing a claim for unfair dismissal.
  • Recruitment Issues– If you hire the first applicant that applies for a position, you will likely have issues. Recruitment is a long and time-consuming process and in order to reach the right people, you need a good HR agency. They know how to reach top-quality people and you end up with a shortlist of applicants to interview.

As you can see, there are a lot of issues that a small business can experience if they haven’t got their HR needs covered by a professional agency. They have the know-how and experience to meet your HR needs.