Not having access to appropriate HR advice can significantly impact your business in many ways:
1. Reduced Productivity and Profit
Line Managers are not equipped to deal with issues such as sickness absence or managing poor performance quickly and efficiently, resulting in a drop in productivity and therefore a negative impact on your bottom line. Read our blog on how to manage sickness absence and save you business money.
2. Business Goals Take Longer To Achieve
Troublesome employees or tricky people issues can easily distract focus from your business objectives, therefore making it harder and take longer to achieve those important goals. If you already have an HR Manager or HR team in place, they may be too bogged down with providing HR advice and resolving HR issues to be able to focus on more strategic activities that will move the business forwards.
3. Wasted Time and Money
Issues that do not get resolved effectively when they first arise are more likely to require even greater time, attention and money to be resolved later on. On average, employment tribunals end up costing businesses c£12,000 each but successful discrimination claim cases are not capped so the financial risk can be much higher. Read our blog: The real cost of not managing poor performance in your business.
4. Demotivated Employees and Increased Attrition
Employees will be demotivated – both the Line Managers and Leaders who are having to manage the HR issues, as well as other team members across the business. The stress and lack of morale caused as a result, will often trigger further HR issues with other team members as well as an increase in leavers.
5. Increased Risk
If you don’t have access to HR expertise or have a more generalist or junior HR Manager or team who is not confidently able to provide accurate and correct HR advice to resolve more complex HR issues, your business will be exposed to even more risks of expensive punitive action and damage to your brand.