HR Function

Risks of Operating Without a Dedicated HR Function, Part 2

Welcome back to the second part of our series on the importance of human resources (HR) for small to mid-size businesses. In Part I, we delved into the financial risks that arise from not having a dedicated HR function. Now, we shift our focus towards the cultural risks that emerge when HR is neglected within organizations of this scale.

Conflict and Workplace Issues:

When you have multiple people in any organization, conflicts are bound to arise. Without a dedicated HR professional to address employee concerns, conflicts within the workplace can escalate and create a toxic work environment. Unresolved issues, whether they stem from personal conflicts, discrimination, or harassment, can lead to employee stress, decreased productivity, and even legal complications. At Leath HR Group, our expert HR pros have years of cross-industry experience navigating employee conflict with precision.  The outcome, a harmonious and productive work environment.

Workforce Strategy:

Strategic people management involves aligning employees’ skills, aspirations, and goals with the organization’s vision and objectives. A lack of HR expertise can hinder the development of effective talent management strategies, succession planning, and employee development initiatives. This absence prevents businesses from optimizing their human capital potential and leaves them vulnerable to losing top performers to competitors. HR’s strategic focus on employee development and talent retention is vital for long-term success.

Opportunities for Growth and Development:

A strong HR function goes beyond administrative tasks. It actively supports employee development, training, and career advancement opportunities. Without HR, your employees may lack the guidance and resources they need to enhance their skills, hindering their professional growth and potential.

Leath HR Group is Your 1-Stop Solution:

Leath HR Group is an award-winning HR consulting firm with a deep commitment to excellence and a passion for helping organizations succeed. Our team of expert HR consultants understand that your business’s biggest assets are its people, and we know people!  Our team leverages cutting-edge practices and delivers a personalized approach every time.  With Leath HR Group as your partner, your business can unlock its full potential, achieve sustainable growth, and confidently navigate the dynamic challenges of today’s competitive landscape.

Reach out today for an HR consultation at

This article was contributed by Gabrielle Plumez, People + Culture Consultant @ Leath HR Group.

More HR Insights

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.