The business landscape in 2009 has been characterized by organizations -both small and large, for and not-for profit - struggling to work their way through the economic mire and emerge as leaders in their respective industries. Faced with declining revenue streams and an unforgiving cost structure, executives have been looking more and more within their own organization for ways to increase the efficiency of their workforce and in turn, profitability.
For a large company with a full team of HR professionals, organizational development may be one thing; recruiting, hiring, and retention practices are their expertise. On the other hand, many small-business owners are inundated with human resource demands, which can be very distracting from the normal course of business and downright frustrating at times. An article in the Chicago Tribune had a great analogy illustrating this exact point:
"Like a car without a muffler, small businesses can run without a human resources component. But business owners can often become so distracted by dealing with the noise that comes from non-entrepreneurial tasks--personality clashes, employee apathy, poor performance, government mandates--they can lose their way."
Despite the obvious benefits of having an HR professional on staff, one of the biggest reasons small-business owners tend to do it themselves is cost. Hiring a full time HR manager could have a price tag of up to $90,000 a year with benefits, and hiring an HR consultant could run around $500 per hour. If for-hire human resources professionals and consultants demand such a pretty penny for their services, and the old adage "you get what you pay for" holds true, why are most owners and managers overlooking such an important component of their business?
To me, it seems as if small business owners underestimate the power of an HR professional to attract, hire, and retain an engaged workforce. Those who do appreciate the importance of an HR professional but still neglect the need to hire one may be overestimating their ability to juggle the various employee needs while still effectively operating a business.
Luckily for the confident yet thrifty businesspeople out there, the Executive Education department has a perfect solution. In November, we will be offering a 3-day program designed to benefit anyone who is responsible for hiring, managing, developing, engaging and retaining talented employees. The Leading and Developing Top Talent program will be taught by two outstanding human resource professionals with over 35 years of combined experience in the field. For more information or to download a registration form, visit our website or e-mail us.
-- Sam Battan, Business Intern, Executive Education Team
