The greatest risk any business — including yours — faces is lack of proper sales and marketing. With products and services increasingly commoditized, the customer experience matters most. Companies that deliver the best sales and marketing experience are usually the most profitable, which is why so much training is invested in those areas.
The second greatest risk your company faces is not having quality HR practices. Most companies' HR practices are randomized. Anytime I’ve run the HR That Works Cost Calculator for a client, the variance or cost associated with HR practices comes to at least 10% of payroll. That figure combines hiring practices, employee productivity, turnover, teamwork, time management, safety record, employment practice exposures, and other factors.
If any other part of your business had a 10% or greater variance you’d be in trouble: a similar variance in financial management, product quality, or professional services delivery would lead to serious consequences. HR deserves similar seriousness.
HR isn’t glamorous, but it can be and should be strategic. Sales and marketing is about “them.” HR is about “us” — who we are as people, not just human resources. If you or your HR manager aren’t excited about the role, reframe it (for example, “People Experience”) and focus on the opportunity.
One of HR’s roles is to ensure employees keep the promises sales and marketing make. That means enabling employees to deliver great customer experiences. If you need inspiration on employee orientation and onboarding practices, review The Importance of Effective Employee Orientation and HR Practices.
If you don’t have internal bandwidth to improve HR practices, hire part‑time help. Consider what would happen if you had poor hiring, high turnover, low productivity, poor teamwork, weak training, high workers’ comp and employment claims, and excessive drama. Suddenly, investing in HR looks like a smart business decision.
Start by asking where the stress is in your organization and what feels unfair to people. At the same time, identify what’s going exceptionally well and how to replicate it across the company. Also pay attention to workplace safety and training as part of risk reduction; see resources on Workplace Safety Training and Risk Management for ideas you can adapt.
The common reality in small- and mid-sized companies is that HR roles are often taken on by someone by default. Don’t give up — focus on generating value through greater productivity, profitability, and daily joy. This is an opportunity for both the company and the HR professional’s career.
Ten quick steps you can take today
- Make sure your employee handbook is up to date and have an attorney review it. Then bring it to life so employees understand how the organization works in practice.
- Skill‑test employees so you have facts rather than assumptions about strengths and training needs; budget modestly for validated assessments per position.
- Ensure all employees and managers complete sexual harassment prevention training and acknowledge company policy annually.
- Create team rules or commitments. Use a template to draft team agreements, have staff sign them, and display them where teams can see and reinforce the commitments.
- Require use of an Overtime Authorization Form to control unwarranted overtime and identify clients or projects causing legitimate extra costs.
- Set up a monthly lunch‑and‑learn or workshop for managers to solve problems and build leadership skills; short, focused sessions are often most effective.
- Join or form a mastermind group with other HR professionals to share best practices, stay accountable, and accelerate learning.
- Distribute an Employee Compliance Survey regularly; it can surface issues early and reduce the chance of costly litigation when used appropriately.
- Run your HR numbers using a cost calculator to identify the financial impact of HR practices and build a business case for improvements.
- Survey your management team to find out what support they need from HR and prioritize high‑impact changes such as hiring, performance management, and training.
Focus on doing at least one proactive thing every month to improve some part of HR. Don’t narrow HR to payroll and benefits administration; tap into people’s heads and hearts to create something special together.
If you’d like an outside review of how HR, safety, and operations intersect with overall risk management, consider discussing those topics with an insurance specialist.
If you need implementation help or want a cost estimate for insurance and risk services, talk to an agent
Frequently Asked Questions
How much can better HR practices save my company?
Better HR practices can reduce turnover, improve productivity, and lower claims and overtime costs; many organizations measure savings as a percentage of payroll and operating expenses.
What is the first step to improving HR in a small company?
Start with a short audit: update the employee handbook, ensure compliance training is complete, and identify one process (hiring or onboarding) to improve this quarter.
How often should I train managers on people skills?
Regular short sessions—monthly or quarterly—work well; aim for ongoing practical workshops rather than one‑time lectures.
Can simple tools like an overtime form make a big difference?
Yes. Administrative controls such as authorization forms and clear client pricing for rush work can quickly reduce unnecessary costs.