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Signs Your Business Needs an HR Manager

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When starting a small business, every dollar counts. As a result, many small business owners attempt to save money by foregoing a professional HR manager. Instead, they attempt to handle all HR responsibilities on their own. However, failing to invest in a qualified HR department can often end up costing businesses more money in the long run—especially as the business grows. If you’re trying to determine whether you should start making human resources a priority in your company, keep an eye out for these surefire signs that your business needs an HR manager.

Employee Productivity Is Suboptimal

Decreased productivity is one of the many ways that forgoing an HR department can cost your company money. After all, when productivity drops, so does your bottom line. Fortunately, hiring an HR manager can help boost the productivity of a company in several ways.

For example, HR managers can develop incentives that effectively motivate employees to exceed expectations which can skyrocket productivity. In addition, human resources managers can curate a positive work environment or create ongoing training opportunities to help employees reach their full potential and stay motivated.

If you notice that your employees aren’t operating at optimal productivity levels, it’s a good idea to look into hiring an HR manager.

Your Company Is Growing Quickly

Experiencing growth as a company is typically a positive and desirable outcome that is indicative of success. However, growth isn’t always beneficial. If your company isn’t equipped to handle the many changes and developments that accompany growth, you can expect substantial—and potentially detrimental—growing pains.

Without an HR manager, hiring and training new employees, maintaining a positive company culture, and handling conflicts between the increasing number of employees will likely prove very difficult. While businesses of any size can benefit from an HR manager, hiring a dedicated human resources professional is especially important if your company grows beyond 50 employees.

Employee Turnover Rates Are High

One of the most obvious signs that your business needs an HR manager is if you are experiencing high employee turnover rates. High employee turnover rates can negatively impact a company by damaging morale and substantially decreasing productivity as a large portion of time will need to be designated to training new employees. Plus, high turnover rates also decrease the number of employees with experience at your company which reduces knowledge transfer and continuity.

To slow employee turnover rates and avoid such negative impacts, it is beneficial to hire an HR professional. Human resources managers have the skills and expertise necessary to get to the root of why employees are continually leaving the company and formulate effective solutions that will help encourage employees to stay with your company for longer.

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