Human Resource Management at Work

A product or service is only as good as the peoplepeople and an overhead budget of approximately
that make it, design it, or sell it. This means that one of$200,000 per year.
the most important assets of any organization is theirWell, in the first place you would not need 5 HR
human capital. If you have qualified, enthusiasticpeople. Most small companies can do quite well with a
individuals, you will have a better chance of maintainingpart-time HR person that is capable of giving good HR
a leading edge over your competitor. If you have pooradvice and counseling. Costs may vary, depending
morale, low production, ineffective service, or untrainedupon the expertise you are looking for, however, if you
individuals - the chances are pretty high that yourfind an independent contractor with solid HR
organization will be in the top 33% of all organizationsexperience, an hourly rate for tasks completed would
that fail. People really do make the difference.probably be very cost effective.
It is easy to see why HR is the most expensive partWhat can you, as a small company owner or
of doing business if you consider that studies showmanager do to have the leading edge and have your
that the expense of having employees is about 40%employees weigh in on the asset side of the ledger
of a company's profit,. Large organizations haveand not on the liability side? Talk to various human
always seemed to have HR expertise - they haveresource consultants and pick one that is right for your
fully staffed HR or Personnel Departments withorganization - one with experience, capabilities, and
varying degrees of specialties, such as compensation,knowledge of human resource functions. Look at tools
benefits, training, recruiting, etc. A fully staffed HRand resources that will help you develop your staff. Be
Department in a large organization might consist of atsure to check out all available tools and resources and
least three people at a cost of about $200,000 perfind the right one for you.
year - just for salaries. Just imagine what you, theOnce you decide on the right combination you can get
small company owner, could do with a staff of 5on with what you do best - run your company.