SAM 4115How many employees should a company have before there is a need for an HR department?

  • As organizations grow there is a need to administer HR, but that does not mean an HR department is necessary NOR does it mean you will fill all of your HR needs, expertise and gaps with this one person.
  • Typically any organization even those with as few as 10 employees need someone to tend to the employment related issues. Such a person is often in the position of Controller/Office/Store Manager and asked to know far too much in a field that is complex and critical to running an effective compliant business. They are spread too thin and inadequately prepared to handle complex employment related issues.
  • Outsourcing this function could be the answer to solving your HR issues.

How does HR consulting work for an organization when they are not part of it day to day?

  • This is quite simple. First as a consultant, JBM gets to know the culture, policies, practices and desires of the business.
  • After that, employee laws and problems can be handled, once you have the level of experience and expertise as JBM.
  • JBM would serve as a mentor to that person on staff that handles day to day employment questions so that person can appropriately and comfortably handle the situations they encounter.

How much does something like this cost?

  • Consulting on an “as needed” basis can be handled on a flat rate annual fee with a certain amount of hours committed to that organization for that fee.
  • This is worked on directly with the business in order to meet the needs of that particular organization.
  • Fees are reasonable and affordable, guaranteed! Small businesses can have an HR presence for as little as $500.00 per year!!!
  • You can’t afford NOT to have this function.

What constitutes HR functions?

  • Typically, HR includes those functions that no one else either wants or is capable of doing effectively. From recruiting to orienting new employees, from writing job descriptions to handling performance issues, from benefit administration to recordkeeping requirements, handling payroll issues, as well as writing policies and monitoring compliance.

How do I know what I need for my organization?

  • JBM has an HR assessment that quickly identifies those most vulnerable areas and makes recommendations as to what to focus on and why.

What is the value of having such functions in place?

  • Compliance, reducing likelihood of a lawsuit; good business practice; effective recruitment strategies; higher levels of professionalism and performance; reduced likelihood of turnover and conflict.

I need an HR structure. What would JBM do to help with that?

  • JBM would determine the expectations of those key business managers that realized the need; compliance issues will be identified; employee handbook reviewed to ensure it is up to date and appropriate;
  • Some basic functions would be to ensure that wages and hours of work, positions are classified properly, I-9’s are in place; COBRA is in place (for those with 50 or over employees); harassment policy is in place along with training; and a host of other things.
  • Review of employee files will also be important ensuring that some basic items are in the files such as application for employment, performance appraisals, changes in wages, position changes etc.
  • Review of payroll functions and benefit administration will be included in the review as well as the compensation system and recruiting practices;
  • JBM will then assess the type of HR person that you might need to keep the functions going and one that can handle the day to day HR questions once such a structure is in place.

It seems easier just to hire someone on staff to handle this work... why shouldn’t I?

  • First of all, the cost of a well experience HR professional is often not money well spent since the needs of smaller organizations (under 200 employees) is such that the need for a professional on the payroll all the time is not cost effective.
  • When trouble lurks, the level of person you need is significant. An experienced consultant can plug right in and set up a process to resolve the issues.
  • Most organizations that insist on hiring this position have found this to be true, not only are strong HR professionals paid significant salaries but a well experienced person would likely not be energized by small organizations since the need for their service on an ongoing basis is simply not there.
  • There have been many businesses that tried this and realized it doesn’t work… they now use HR consultants.

We use attorneys. Why would we need an HR consultant?

  • Attorneys charge three times or more what JBM would charge, further, JBM has attorneys that utilize her expertise since as some have put it “attorney’s know the law, NOT how to apply it”!
  • That’s a significant difference – cost and practical expertise.
  • Many attorneys send clients to JBM for this reason!

It is often stated…” I have an office manager that focuses some of his/her time on HR and it works”…does it really?

  • Assess whether this really is working. JBM has found that conversations with office managers have indicated they are stressed, overworked and do not understand half of what they need to know related to HR…yet they are asked to handle things that can put a business in a vulnerable position legally, if challenged.

I don’t have time to deal with HR related issues.

  • You can’t afford not to spend time and money on these issues. Your staff salaries and benefits account for a significant portion of your business income, are they working effectively
  • Are you putting your business in jeopardy by not dealing with employment related laws and requirements?
  • Your employees are your most valuable ASSET… ensuring they are working smart for your business needs to be your main priority.

I am not comfortable dealing with strong personalities or conflict in my office and I don’t have time to spend on this so maybe if I ignore it, the problem will go away.

  • Learning from an experienced professional on how to handle such personalities is all it takes. This will save you valuable time and money for the future.
  • The problem will NOT go away, but rather get larger over time. Employees see passive approaches to their workplace issues as lacking respect for them as people.
  • Morale and productivity suffer as well as a decreased respect for those managing the business!

I know my staff could use training, but we don’t have time nor budget to cover this type of expense. What can JBM do to help with this issue?

  • JBM has on line training that is not only affordable for everyone, and viewed “on demand”, none longer than 30 minutes.
  • Such sessions are web based so can be viewed from any location where the internet is available. Check out our website (www.jbmconsultingonline.net) for more information on topics and costs…the one payment for the particular webinar can train your entire staff.
  • All sessions are priced at $99.99 or less!

So what will be the biggest benefit to having an HR consultant?

  • Besides what has been mentioned above and probably most importantly in the end is “peace of mind”...you know you need to handle this important aspect of your role as business owner/manager;
  • You are not immune to laws regardless of how many employees you have and you can’t afford to not ensure your staff is trustworthy and working hard to ensure your clients/patients/customers aren’t getting the level of service they deserve
  • Focus on what generates income/profits and effective business practices.