HR is often overlooked in business models, especially in SMEs. Both companies and employees misunderstand the role of HR and have many misconceptions that affect the operation of the HRM department. That’s why we have created this blog to bust the biggest myth in business for HR that can help you boost your productivity and retention rate and improve the working culture.
Busting the biggest myth in business for HR
HR is crucial for any business to work efficiently and create a better work culture that keeps the employees engaged. However, there are many misconceptions regarding the role and nature of HR. Let’s bust a few common myths about HR in business.
HR Myth 1: Small companies don’t need HR
This is one of the most common myths in the business world. SMEs, especially those with 10-12 employees, often think they don’t need HR. They rely on the founder or the managers to manage everything, including recruitment, training, payroll tracking, and employees’ grievances.
However, this can be fatal for the businesses because of the confusion, work overload, lack of policies and timely communication. HR doesn’t just hire and fire people; it creates a workflow and setup system that keeps the company running smoothly.
Furthermore, I take on the responsibility of training, tracking, and managing people and their performance. They also align the people’s policies to the business’s future goals.
HR Myth 2: HR is just for hiring, firing, and fun Fridays
We all know that HR is responsible for hiring new employees and firing those who don’t meet the standards. However, that’s not all. They are also responsible for engaging and managing the people in the organization to improve productivity, reduce turnover rate, and ensure that everyone complies with the company policies.
HR needs to bridge the gap between organizational goals and the employees’ career goals to ensure that the employees stay and grow in the organization. They need to create an onboarding process that helps the new employee settle in and gives the desired performance. That’s important because effective onboarding can increase retention rate by 82% (source).
Furthermore, they need to identify the top performers and create a training program that can shape the company’s future leaders.
HR Myth 3: HR is always on the company’s side and not the employees’
Office politics can ruin productivity and the company’s culture, and somehow, HR gets villainized the most. It’s a popular opinion that HR will always side with the leaders or the upper management.
However, HR always wants the best for both by facilitating transparent communication and ensuring policy compliance. They ensure that employees are being heard and that conflicts are resolved fairly.
HR Myth 4: HR department only has expenditure
Hiring is expensive, no doubt about that. The employee hiring, training, and organizing events do cost money. However, that’s where HR departments are misunderstood.
When you involve your HR in strategic meetings to discuss future goals, they can hire the right people and provide the right training to make them more efficient. An efficient employee will be productive and increase your ROI.
Additionally, HR can help you retain employees with better onboarding and engagement. It is found that a good retention rate can help you save money, as replacing an employee costs 0.5 to 5 times the employee’s salary.
HR Myth 5: HR only does administrative work
Managing the documents for attendance, payroll, and legal compliance is important for HR. However, that’s not all they do.
In recent years, the role of HR has moved from administrative to strategic. This means they play an active role in the business by aligning the people strategy with the company’s overall mission and vision. They are now adopting technology to automate their tasks and focus on tracking and analysis to improve the working culture, enhance productivity, and make better data-backed decisions.
HR Myth 6: HR doesn’t need any special skills
HR has one of the most important skills that keeps the business running: interpersonal skills. They are closely interacting with everyone to ensure that everyone is getting heard and conflicts can be resolved efficiently.
Furthermore, HR has to stay updated with employment laws and industry trends for legal compliance and hire skilled employees. In recent years, HRs have adapted technology and analytics to fast-track their repetitive tasks and focus on important ones.
HR Myth 7: AI will replace HR
HR is transforming HR, but replacing it? Not yet, or maybe never.
HR isn’t just tracking time logs and payrolls; they are working closely to identify problems that numbers can’t reflect. They are managing people who need human understanding and a solution. That’s why AI will help reduce the workload of HR but never replace them. Instead, HR will have more time to create strategies that bridge employees and organizational goals.
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Conclusion
The biggest myth in business for HR is that they aren’t needed. On the contrary, they are in fact very much needed. Their role isn’t just about hiring, firing, and organizing fun Fridays; they are shaping the future of business by creating a people strategy that aligns with organizational goals. They don’t just spend money on hiring, but also save money by reducing the turnover time and improving work policies to boost productivity. We can help you improve your SMEs’ HR with expert HR consultancy. Contact us now to know more!
FAQ
Do companies really need HR?
Absolutely! HR focuses on hiring people who match the company’s goals. They also create better onboarding and work policies to improve employee engagement, productivity, and retention rate and resolve conflicts if needed. So, they are vital to managing your people and growing your company.
What are the biggest problems of HR?
The following are big problems in HR:
- Employee engagement and retention
- Bridging the gap between employees and top management
- Managing all the legal and ethical compliances
- Adapt to modern technology while managing the workload
Can I outsource my HR?
Absolutely! Outsourcing HR services can help businesses manage payroll, recruitment, and performance at a lower cost than building an in-house team. However, getting instant support might be tricky. So, consider your needs and choose your HR outsourcing partner wisely.
What are the biggest myths in business for HR?
The following are the biggest myths in business for HR:
- Small companies and teams don’t need HR
- All HR does is hiring, firing, and organizing events (and making rangolis)
- HR has an administrative role
- The HR department is all about expenses and creates no value
