#ZelleIntel Human Resources: The Importance in Your Start-Up to Mid-Sized Business
Are you a business owner spending time doing HR instead of building your business? What would you rather do with your time?
Outsourcing HR functions has numerous pros: internal cost savings, better focus can be spent on specific position responsibilities, improve efficiencies and productivity, you have an expert HR team, objectivity within HR practices—you get the point.
No matter the size of your organization, HR functions will always exist. All organizations must be compliant with local, state, and federal law, have risk factors that need to be analyzed and mitigated, and need to know employees have a trusted, dedicated person to go to for support. In start-up and mid-sized organizations, we typically see HR functions being done by a current employee in a different role (e.g., CFO, Office Manager, etc.). This can cause HR functions to take a backseat to other priorities.
According to Indeed, small businesses typically have higher HR staff to employee ratios because other employees do not have adequate time or the ability to execute on HR functions. It is imperative to have HR professionals for your business to avoid compliance issues, on-time submittals for applicable filings requirements, employee engagement, competitive hiring practices, intentional retention strategies, and overall HR business leadership.
You’re thinking, “I only have a few employees. I can handle HR functions on my own”. You’re right. You can. But are they being executed at a level sufficient for employee retention? Do you have sustainable recruiting practices? Have you planned out career paths for your current employees as your business grows? Are you engaging your current employees to ensure their needs are met and they’re happy?
Forbes conducted a study for general HR statistics and trends for 2023.
47% of HR leaders report employee experience as a priority for 2023.
This includes defining clear career paths, communicating benefit options, and providing new opportunities for existing employees.
46% of HR leaders report recruiting is their top priority in 2023.
Success begins with your employees and it’s the HR department’s job to find talented individuals.
30% of new hires leave within 90 days.
43% say the role doesn’t meet their expectations, 34% leave because of a specific incident, and 32% don’t think the company culture is a good fit. It costs an average of $1,400 to onboard a new employee. It takes around six months for a company to break even on a new hire.
Employees are three times as likely to explore their options if they don’t feel supported.
If an employee feels stable in their career, they’re 20% more likely to still be working at their current company in a year.
Companies with a structured onboarding program keep 58% of employees for three years.
77% of new hires with official onboarding programs hit their first performance milestone.
Companies with highly engaged employees are 21% more profitable.
Companies with highly engaged employees were also 17% more productive.
The data speaks for itself. HR is a necessity and is directly correlated to the recruitment, retention, and productivity of employees.
At Zelle Human Resource Solutions, we can be your HR department, or we can support an internal individual who performs HR functions. We excel in all things HR, but we’ll start with the basics to get to know you and your team, create foundational, maintainable HR practices, assess potential risk, and ensure your business does not become a negative statistic. You’ll get to spend more time on your business, and we’ll work together to create a trusted, sustainable HR department to support your growing team.
