Nowhere to run.
Q: There’s only five of us in my design business. Why would we be bothered with Human Resources? We know perfectly well how to hire and fire people.
A:
Even the smallest company must comply with certain employment and workplace related laws. How do you know if you are legally compliant and that you do not run the risk of a claim if a working relationship turns sour? There is an increasing body of legislation that you need to take into account and you will not be excluded from such claims.
And it’s not just about legal compliance or, indeed, hiring and firing. How do you ensure the continued effectiveness and motivation of your employees? Theory and practice both point to career paths, personal and professional development, and a conducive working environment as key to maintaining your ambitious and talented staff.
When I first set up my consultancy, I had thought that my client base would be almost exclusively companies that were, say, 30- to 80-strong. As it is, my smallest client has only 4 staff and the largest has more than 100.
When a company gets to a certain size, it needs some structure and procedures in order to be able to operate at its maximum. When it gets even larger, there are so many aspects to HR that come into play, outside help is often welcomed even if there is an HR presence in-house. An outside consultant allows internal staff to continue to provide a consistent level of service to the employees even whilst a particular time-consuming project such as a training programme or an appraisal scheme is being put into place.
In my mind, of course, there is no question as to the value of Human Resources. A loyal and motivated staff member is more productive, enhances the knowledge base of your company and so adds value and innovation to the work that you turn out for your clients. Don’t you want to retain those key members of staff that you’ve sought so long to find and who produce your best work? Equally, don’t you want to deal fairly and effectively with those members of staff who need help to perform to their maximum.
From a legal point of view, although several laws do not yet apply to smaller companies, they soon may do. You may also want to consider your market reputation. In an increasingly competitive market place, what would entice the best candidates to consider working for you and your company?
The quality of your Human Resources function acts not only as a key market reputation indicator, but enhances your productivity and the quality of your work, thereby increasing client attraction and gaining you work. Isn’t that why you’re in business?
November 2004
FX Magazine