The Power of HR: Why Direct Access to Competent HR Matters to Your Business
As small and mid-sized business leaders, we wear many hats. From managing our 
day-to-day operations to driving growth, our plate is overflowing! And amid our
filled-to-capacity days, we also try to fit in some human resource (HR) “stuff.”
Yet, if we pay attention to business research findings, we’ll come to realize that
providing our employees with direct access to strong, competent HR support isn’t
just a luxury—it’s a necessity. And here are just a couple of reasons why:
- Enhanced Employee Well-being, Empowerment and Support
Our employees are ultimately what makes our business hum. Their well-being directly impacts their performance and, ultimately, our bottom line. Dedicated HR access can offer employees the resources they need to manage stress levels, especially when there is workplace conflict. A Global Human Capital Report, released by a leading provider of research-validated assessments and training tools (CPP), found that U.S. employees spend approximately 2.8 hours per week dealing with conflict. Additional research also seems to indicate that, on average, a manager spends about a third of their time dealing with conflicts in the workplace. Effective HR intervention can help resolve disputes quickly and fairly, and as such improve productivity, enhance workplace morale and free up managers to do value-added work. - Fostering An Environment of Fairness, Openness and Trust
Speaking of reducing stress and conflict in the workplace, trust and transparency are the cornerstones of a healthy work culture. Let’s face it … workplace policies, rules and regulations are not the easiest to explain and navigate! When our staff have direct access to HR, they have a reliable, knowledgeable and empathetic resource that can help them get clarification on company policies, talk through any concerns they may have and get guidance on options available to them. This not only helps create clarity and trust in a fair and equitable workplace; it also frees up line managers to manage work and performance rather than navigate procedural, administrative or other employee relations issues that lie outside their area of expertise. - Ensuring Compliance and Legal Protection
Again, navigating the complex landscape of labor laws and regulations is not for the amateurs and the weak at heart. Competent HR support helps ensure compliance and protect our business, helping us avoid costly legal issues by adhering to the established rules and regulations as well as addressing any grievances or misconduct promptly and appropriately. Non-compliance often results in hefty fines, and employment lawsuits have increased by 400% over the past 20 years. According to Jury Verdict Research, over the past 20 years, employment lawsuits have increased by a staggering 400 percent with federal employment cases resulting in an average reward compensation of almost $500K. Research also shows that companies with robust HR support report fewer compliance issues and legal disputes, reducing associated costs by up to 30%. - Driving Employee Engagement and Retention
Employee engagement and retention are critical to the success of our business and direct HR access can impact both of these metrics. Employees can often offer valuable feedback to HR around how to make things better in the workplace, from ergonomic needs and designs to safety improvement recommendations to team building ideas. Employees also have a resource they can leverage to learn about career development paths and opportunities, seek guidance around available training offerings and get the right support as they continue their professional growth. Research findings show that employees who have access to professional development are 15% more engaged and tend to stay longer in companies that invest in their professional development.
The Bottom Line
Investing in direct access to competent HR support is not just about compliance or conflict resolution—it’s about creating a thriving, productive workplace. According to Gallup, highly engaged workplaces see a 41% reduction in absenteeism and a 17% increase in productivity. Moreover, the CPP Global Human Capital Report found that effective HR intervention can significantly reduce the time employees spend dealing with conflicts, enhancing overall productivity. And research consistently shows that small and midsized fast-growing companies that prioritize HR best practices, have a higher likelihood of achieving substantial revenue growth.
For small and mid-sized business leaders, the benefits of providing their line managers and employees with access to a strong HR team are clear. Making this resource available to them leads to a more engaged, efficient, and loyal workforce, ultimately driving our business success. Don’t overlook the power of HR—your business longevity and growth may depend on it.
If you want to have a conversation of how to make such as resource available to your teams in a way that makes sense for your unique business situation, reach out to talk with one of our HR experts.
