Human resource departments are essential to any business. This department is responsible for overseeing the administrative functions of an organization. As such, it has a large impact on all levels of the corporation. Without effective HR management, the business could face serious legal, financial, and productivity issues. These issues, ultimately, could lead to its failure. Learn more about the consequences of poor human resource management.
High turnover rates
Human resource management failure directly affects employees. Without proper human resource management, employee dissatisfaction could go unnoticed. As a result, employees will be more likely to seek employment elsewhere. In this case, an effective exit interview with a qualified HR professional is essential in addressing their motivation for quitting. If this meeting doesn’t occur, there is no one to pass on the valuable information and serious company issues could go unresolved. This will presumably lead to high turnover rates.
Inefficient hiring process
Efficient recruitment is an important aspect of any business, especially if it is fast-growing. Typically, an HR professional handles the company’s hiring needs and interviews candidates that will satisfy them. Without proper HR management, companies could mishandle this crucial process. This may lead to unqualified staff, over- or under-staffing, or hiring employees with an overlooked dangerous criminal history.
Having a knowledgeable HR staff can help avoid common issues with the hiring process, such as unclear job descriptions and postings, lengthy and complicated application processes, and failure to audit current hiring processes. These are all common human resource management issues concerning a company’s hiring process.
Low morale
Poor HR practices will likely spread to impact all levels of the company. Such negative impacts may include employee conflict, lack of recognition, inadequate training, and poor team building among other issues. Due to the lack of an effective HR management strategy, employees may feel that such negative situations will not improve. As such, this will likely damage workplace morale.
Lost business
The happiness and job satisfaction of a company’s employees plays a large role in its success. If employees are constantly quitting or being unproductive due to a negative work environment, the business loses time and money. Further, the company will also have to frequently undergo the training and hiring process while simultaneously losing people with specialized knowledge about the company. Overall, likely stunting its growth.
Legal issues
Legal issues can be a serious consequence of poor human resource management. HR is often largely responsible for ensuring that a company complies with employment and labor regulations. In addition, they also craft policies that prevent employees from unfair treatment. To avoid employees from feeling like they were victims of wrongful termination, harassment, or discrimination, it is important to have a policy that prevents such issues. If companies don’t clearly write, distribute, and update their policies properly, they could face a serious legal problem in the case of an incident.
At The Christopher Group, we understand the importance of top-notch human resource management. As a human resources executive search firm, we’re committed to helping businesses recruit incredible HR professionals that are integral to their success and avoid costly human resource management failures. To start improving your business’s human resource management, contact our team today.
Very nicely documented the impact of poor human resources. A few years ago, as published in business week, ctitbank faced this situation and bank of America threw them from top position to the second one.
Human resourcess Thank you for the sharning information This article is so great, will be very much useful for Thank you sharing
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I would love some advice about what to do with a dysfunctional HR person at my new job. So far, she has tried to terminate someone without cause, she has tried to not pay someone else who worked for two weeks (she wanted to cancel his contract as if we never hired him), and she seems to be retaliating against me for preventing her from doing these actions. She has started calling me in the evenings and yelling at me for not answering emails that are not directed to me — or emails that I do answer but not in the fashion she wants. For example, she emailed me for a full breakdown about an employees performance over three weeks, I emailed her back right away and gave her a 48hr delivery timeline of when I would be able complete that new assignment, based on my current position priorities as a producer, and then she called me yelling in the evening because she wants her request to outweigh things like client budgets and schedules and things that will cost the company our contract obligations. She is harassing me and says she is building a file against me — which includes, that the sound of my voice is “too loud,”and that I interrupt her, when the reality is she will ask me a question, I will start to answer, and she will interrupt me — and then tell me that I am interrupting her when I try to continue speaking. She seems to be power tripping in a big way. How do I navigate this? What can I do? She has also said that she is the personal therapist to the owner — he calls her at odd hours of the night and over the weekend, but since she is hourly, she says she enjoys taking the calls because it means more money for her. I have noticed my relationship with the owner has become strained following her involvement, as she seems to be speaking ill of me to him but then never speaking to me about what she is seeing as issues… probably because, by all legal accounts, I am doing my job very well, I am bring in contracts for the company, I am hitting all my delivery milestones in advance, and it seems like her main issues with me are personal and unprofessional (ie. the sound of my voice). Any advice for what I can do? I have set up a camera in my office that can record sound so that I have recording of her yelling at me and being disrespectful of my position (ie. she assumes she has the authority to order me to miss my client deadlines at her whim). She has asked me to “read the book the Four Agreements” which feels outrageous and has asked me to speak with a softer, “more feminine” voice — this is after I have been with the company for two months and no issues with anyone else re the sound of my voice. I am only trying to do my job and prevent her from getting the company sued, again, for wrongful termination or for not paying people for their work done. Is there anywhere to report HR? Would I need to get a personal lawyer and start building my own file of what she is up to? Any advice would be great! Everyone else at the company is fine — but this woman has it out for me. Thank you!