How Much Are Your HR Practices Really Costing You?
You Could Be Losing Thousands Unnecessarily
In today’s economy, protecting your performance and bottom line as a small business or nonprofit requires tough decisions—but sometimes, those decisions come with expensive hidden costs that aren’t exposed until much later.
One such case is ignoring HR best practices, to save on staffing costs: But are your HR decisions and practices costing you more than you bargained for? Just one bad hire, can have a huge impact on your business’ productivity—and that doesn’t include their salary! According to SHRM-Society for Human Resource Management, “as much as 80% of employee turnover is due to bad hiring decisions”.
For example, a poor performer with a salary of $50,000 who decreases team productivity by 5% could be costing you $12,500 a year, money that doesn’t come out of their pocket, but yours! What about disengaged employees? According to Gallup’s State of the American Workplace report, 70 percent of U.S. employees are not engaged, with 20 percent of that number actively disengaged. Gallup estimates the cost is more than $2000 per employee annually.
If that is not enough of a challenge, add in the statistic, that an incredible 1 in 4 employees will make a claim against their employers, (with verdicts being averaging $250,000), and the real costs of not having a strong HR team at your side are revealed,—and, this is just the tip of the iceberg.
HR is an Investment That Reduces Your Exposure
It’s all too easy to think of Human Resources as an expensive, non-necessary function that you only need in rare cases. However, the reality is that competent HR support helps you to increase productivity and, reduce losses, while being on-hand to ensure that you are compliant with ever-changing employment laws.
A Certified Professional HR Consultant can help build a long-term strategy for your organization and also help with day-to-day HR issues. Professional HR support gives small businesses and nonprofits like yours the safety net of a virtual HR department, and peace of mind that your business is compliant with the latest employment laws, and, prepared for any employee relations issues no matter how big or small, at a fraction of the cost of an in-house HR department.
Download worksheet to calculate How much your HR decisions are really costing you?
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Topics: HR Practices Really Cost You
Written by Bernadette Jones, SPHR, SHRM-SCP
Author: Bernadette Jones, SPHR, SHRM-SCP
Visionova HR Consulting