Running a business is challenging enough, and HR issues can often feel like something you can handle in-house. But what happens when things don’t go as planned?
While cutting costs might be the goal, DIY HR often ends up costing more in the long run. Let’s look at why turning to professional HR support isn’t just a smart decision—it’s a crucial one for avoiding legal and financial pitfalls. Here’s how real businesses have learned these lessons the hard way.
Overcomplicating Simple Matters
One common mistake businesses make is overcomplicating situations by doing more than legally required. For instance, a client recently invited an employee to a meeting and unnecessarily allowed them to bring a Trade Union representative, despite there being no legal right for representation in this scenario. This created undue stress and wasted time and money, of which could have been avoided with professional guidance.
Had the client consulted an HR professional, they would have learned that sticking to the legal requirements—not exceeding them—was sufficient. This would have saved them both the hassle and the risk of further complications.
The Risks of Cutting Corners
On the other end of the spectrum are companies that try to cut corners, often leading to costly mistakes. For example, a grievance was raised against two business owners, and instead of seeking an impartial third party, they decided to hear the grievance themselves. Unsurprisingly, this created a perception of bias. The employee then brought a Trade Union representative into the process, escalating the matter, followed by involvement from an employment solicitor.
This situation demonstrates the dangers of neglecting HR protocols. Professional support could have ensured an impartial process, preventing the issue from snowballing into a legal dispute.
Why DIY HR Costs More in the Long Run
Attempting to manage HR issues in-house might seem cost-effective initially, but errors can lead to significant financial repercussions, including:
- Litigation Costs: Mishandling disciplinaries, grievances, dismissals or appeals can lead to tribunal claims and legal fees, costing tens of thousands
- Damaged Reputation: Negative publicity from poorly managed HR disputes can tarnish a business’s brand
- Loss of Employee Trust: Employees who feel unfairly treated may disengage or leave, increasing turnover costs
The Importance of Staying Ahead of Employment Law Changes
Another challenge for businesses is keeping up with evolving employment laws. Recent changes, such as the prevention of sexual harassment in the workplace, require companies to demonstrate due diligence in their policies and procedures, along with risk assessments. This includes implementing measures to prevent harassment and having a robust complaint system in place.
Looking ahead, other changes are on the horizon, such as:
- Day-One Rights: Employees may soon gain protection against unfair dismissal from their first day of work, significantly impacting probation periods Statutory
- Sick Pay Changes: Proposals suggest sick pay entitlement may start from day one instead of day four
- Paternity and Carer’s Rights Changes: Proposals suggest entitlement may start from day one
- Zero Hour Contract Changes: There are some significant changes proposals in this regard
These are just some of the Circa 28 proposed employment law changes, to stay legally compliant
Without expert guidance, businesses may struggle to adapt to these changes in time, leaving them vulnerable to non-compliance penalties and reputational damage.
