Do I Really Need an HR Consultant?

Welcome to the first volume of Workplace Shenanigans. This blog brings to light the workplace issues (aka shenanigans) that ALL businesses encounter. If there is one thing I have learned in 25 years of HR, it is that there are no silly questions when dealing with people. People are inherently messy, so people issues can be messy. At Soar Consulting, our goal is to help small businesses and non-profits unravel that messiness and build stronger organizations through their people.

When I am networking with other small business owners, one of the first questions I am asked is, "Who is your ideal client?" Great question, but not always an easy one to answer. The reality is that clients often are not aware they need me - until they REALLY need me. Why is that? There are lots of reasons, so let's explore a few.

1. My business is not big enough to need HR.

For some small businesses, it does not make sense to have an internal HR resource or HR consultant on a daily basis. I completely understand that. However, every small business will encounter a messy employee issue at some point in its existence. It might be your first difficult employee conversation, a termination, an employee asking for a medical accommodation, a harassment complaint, an unemployment claim, or simply a manager asking, "Can I do this?" Those are the moments when having someone you trust matters.

You don't have to need HR every day to need HR. Having a trusted partner already identified means your "Call A Friend" option is ready when you need it. You have someone who knows your business and can help you think through the situation before you make a decision in the heat of the moment. Already, I can feel the panic starting to subside. Which leads to the next point...

2. I can handle everything my small business needs.

As a small business owner, you wear a LOT of hats. I took my granddaughter to the LIBA (Louisville Independent Business Alliance) B2B Expo one year. As we left, she said small business owners have to be everything. They have the finance hat, IT hat, marketing hat, social media hat, collections hat, purchasing hat, and on and on. Sometimes it is a wonder we keep up with all those hats!

The reality is that it is difficult to grow and sustain your business without trusted partners. My first trusted partner was an accountant. Then I needed someone to build a website. Then someone to help me with day-to-day operations. None of these are my areas of expertise, but I need these people on my team. I need them to be successful. HR is no different. You don't have to be a people expert, but it is really important to have a people expert in your corner.

Your time has value. Every hour spent researching an employment question or wondering whether you handled a situation correctly is time you are not spending on customers, mission, revenue, or growth. Ask yourself, "Is this something only I can do, or is this something I should have an expert help me do?"

3. My business is small and is not at risk like large companies.

Friends, let me be crystal clear. The EEOC, Wage and Hour Division, OSHA, ICE, and other regulatory agencies do not simply give small businesses a pass because they are small. Depending on the law, different employee-count thresholds and requirements may apply, but "I didn't know" is not a good compliance strategy. That is why understanding which federal, state, and local requirements apply to your specific business matters.

But the big letters are not the only risk you have. Risk often starts with everyday decisions: a bad hire, inconsistent discipline, a retaliation complaint, poor documentation, misclassifying an employee, ignoring a manager's behavior, or handling the same situation differently for two employees. A small issue that could have been addressed early can become a much bigger - and more expensive - problem when it is allowed to sit.

With all those hats you are wearing, it is understandable that you might miss something or simply not know. A trusted HR partner helps mitigate that risk, asks the questions you may not know to ask, and lets you know when the hat is a little askew. Is it complete protection? Of course not. Nothing is. But good HR practices can lower your risk while creating more consistency for employees.

4. I don't even know what to look for in a trusted HR partner.

Fair point. You should not select someone at random to be your trusted partner - for any hat! You need someone who understands and cares about your business. Start with industry experience. At Soar Consulting, we specialize in hospitality, service businesses such as roofing and electrical, and non-profits. We are not specialists in every industry, and that matters. Ask: What do they know about my industry that will help them be the best partner for my business?

After industry, look at experience. Human Resources is not a one-stop shop. Some HR professionals are strongest in payroll, benefits, HRIS, and compensation; others in training, recruiting, leadership development, and employee relations. Do their strengths match what you need now, and can they grow with you?

To make this really easy, focus on these five questions:

1. Do you understand my industry?

2. What types of employee issues do you typically handle?

3. Will I work directly with you?

4. How quickly can I reach you when something happens?

5. Will you tell me what I need to hear, even when it isn't what I want to hear?

That last question is important. A good HR partner is not there simply to agree with you. Sometimes their greatest value is challenging an assumption or telling you the path you want to take creates more risk than you realize. You want someone willing to have the hard conversation.

5. As a small business, I cannot afford an HR consultant.

Cost matters. I own a small business too, so I understand that every dollar has a purpose. HR consultants should have different ways to work with clients, including project-based support, fractional arrangements, training, or help with a difficult issue. You may not need a full-time HR position. That does not mean you have to go without HR expertise.

A trusted partner should understand the cash-flow realities of small business and be willing to discuss a structure that makes sense. Fractional HR allows a business to purchase the expertise it needs without carrying the expense of a full-time HR position - and gives the owner guidance before a preventable problem becomes a costly one.

So, do you really need HR?

Maybe you don't need HR sitting in your office every day. But if you employ people, you will eventually have people questions, challenges, and - yes - workplace shenanigans. HR is not just there to clean up a mess. The right partner can help you hire better, set expectations, coach managers, document consistently, stay compliant, and build the structure your organization needs as it grows.

You don't need a full-time HR department to have an HR strategy. You simply need to know who you are going to call when the question comes, when the employee issue gets messy, or when your business is ready for the next stage of growth.

That is exactly what Workplace Shenanigans will explore. In future volumes, we will tackle the awkward, complicated, sometimes unbelievable people situations that make small businesses and non-profits ask, "What do I do now?" We will unpack the issue, explain how HR can help, and hopefully make managing people feel a little less messy.