Do I Really Need HR?
Yes. Here at EdgeBrook Lane, we believe every company needs to have a dedicated HR function no matter if it’s a full-time HR employee or a fractional HR resource. We often get approached by leaders who have been playing a dual role of HR Manager and CEO OR another staff member is “attempting” to do HR. Oftentimes, they find themselves wondering when they should add an HR function. A recent report from Bloomberg BNA’s HR Department Benchmarks and Analysis says the new rule-of-thumb ratio is 1.4 full-time HR staff per 100 employees. However, like many things within the HR function, it's not always that simple. The HR needs for each company will vary depending on a variety of factors: the complexity of HR processes and administration, the industry, and the article adds other factors like the value HR can add to the company, the areas of greatest need, and skills of the specific HR practitioner.
Research shows small businesses are often allocating too much time to employees who do not feel confident handling tasks within the HR function. In fact, Axios HR cites data from SHRM and HR Daily Advisor showing just this --
45% of business owners spend 1 day per week or more on HR administration
54 percent of small businesses handle employment matters themselves
Less than 50 percent of small-business owners are very confident about the way their companies handle HR
70 percent of businesses with five to 49 employees add HR onto the workload of employees with little to no experience in workforce issue
If one of these statistics resonated with you, here is your sign! We are on a mission to help organizations feel confident in their HR support by providing the best solutions possible.
