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Why companies need a HR health check

by | 09/09/2020 | Blog

The real cost of poor HR practices can be catastrophic to many organisations, but it is the new start-ups and SME’s that often feel the pain the most.

SMEs that cannot afford full-time HR often pass responsibility to a manager with little experience, no desire or understanding of the importance of HR. The realisation that it is not only financial costs, but also the time lost, and stress absorbed that is either ignored or not appreciated until it is too late. This can have a catastrophic effect!

According to the CIPD, the average cost of filling a vacancy is £4,000, rising to £6,125 when labour turnover is included. If the selection process is ineffective, this cost will be at least doubled. Further, in the year 2018-2019, the average award for disability discrimination was £28,371 and race discrimination claims were £12,487. Similarly, organisations face a fine of up to £20,000 for each worker that does not have the Right to Work in the UK.

Forward-looking companies of any size don’t wait for the agony of dealing with figures such as these. It is not just the legal compliance and recruitment that needs to be considered, but the cost of compensation, termination and workplace culture too. If HR is ‘healthy’, then employee retention, resource management and organisational success can improve. But how do the managers who have had HR ‘bolted’ onto their role know objectively what they need to do?

The Coppice HR Health Check is a face-to-face, personal and quick way to gain an overview of how HR is performing. It highlights areas that need to be addressed to reduce the risk and give peace of mind. The results give an insight as to whether there is a need for a full HR Audit and support in specific areas.

Contact Coppice HR at paul@coppicehr.com, 07814 008478 or www.coppicehr.com to complete a simple face-to-face HR health check for your organisation. We can develop cost-effective solutions so that you can avoid expensive mistakes and use HR to improve company performance.

Written by Paul Palmer
Coppice HR
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