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Posted by Adam Braverman | Sep 28, 2017 | 0 Comments

It is commonly said that if an employee has an issue with a supervisor or any other conditions at work, they should discuss the matter with the human resources department. However, many smaller businesses do not have such departments and owners may wonder if it is worth the time, energy, and cost of having an HR team—or even a single representative. As with any business decision, there should always be a carefully weighed cost-benefit analysis conducted to determine whether having a human resources department is right for your business.

HR Can Save You Money

Sure, it takes capital to hire, train, and maintain human resources professionals. However, a human resources department may save you more money than it costs. Human resources representatives are there to address problems that employees may have and they can often resolve a matter efficiently and without any further action. Some examples of how HR may save you money include the following:

Handling discrimination and harassment claims

Claims against your business for unlawful discrimination, sexual harassment, wrongful termination, and other civil rights allegations can be expensive to defend. HR can address concerns as soon as they arise, conduct internal investigations, and take internal action to de-escalate or resolve the matter without the need for legal action.

Resolving payroll errors

Wage and hour claims can also be costly for any company. If an employee has concerns about her pay, HR can look into the matter and correct any errors that were made or explain the situation to the employee, hopefully avoiding a Department of Labor claim and any possible sanctions.

Reducing turnover

A solid workforce is an important asset, especially because high turnover rates can drain a business's money and time. An HR department can improve employee satisfaction and morale in many ways, including developing consistent and favorable policies, producing an employee handbook, and initiating programs to improve well-being at work.

Protecting the company reputation

Issues with employees involving pay disputes or discrimination and harassment claims can create bad press for any company. Avoiding disgruntled employees and maintaining a positive reputation can increase your client base and profits.

While the above are benefits of having a human resources department, it is not the right decision for every company to have one. You may start by allocating certain HR-related tasks to an existing employee or by developing policies and handbooks yourself. There are many potential solutions to human resources issues that you may discover, and an experienced business attorney can help you devise a plan that works for you.

Consult With a New York City Business Lawyer Regarding Your Legal Needs

At Braverman Law PC, we know that many questions arise for business owners regarding the legal and financial implications of certain decisions. We work closely with each business client to understand the nature and needs of your company and to provide advice that best benefits your specific business. If you have questions about any legal matters involving your business or employees, please do not hesitate to contact our New York City business lawyers at 212-206-8166 or online for more information today.

About the Author

Adam Braverman

I come to my current practice of law at the end of an interesting journey. After graduating Phi Beta Kappa from UC Berkeley, and receiving my J.D. from the UC Berkeley School of Law, I chose corporate law, concentrating in venture capital and mergers and acquisitions. I was drawn to the challenge...


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