HR performs several functions that are necessary for small businesses including employee recruitment, onboarding, training, payroll and benefits, compliance and employee relations. Despite the value that HR professionals provide to employees, many small businesses find it difficult to maintain these teams’ credibility among workers.
A report from Secure Data Recovery found that more than a third of U.S. workers working for small companies don’t trust their company’s HR due to factors such as bias, favoritism and inconsistency.
A lack of confidence in HR can lead to distrust of leadership, a lack of transparency, poor workplace cultures and potentially high employee turnover. Therefore, it’s crucial for small employers and their HR teams to understand the key reasons for this distrust and implement strategies to foster credibility among employees.
Reasons for HR Distrust in Small Businesses
Small businesses tend to face unique HR challenges due to limited resources and staffing constraints. Despite a smaller number of staff, small businesses still have burdensome compliance, benefits and HR requirements. Many of these smaller businesses have minimal HR teams or an HR department of one.
With minimal resources, even well-intentioned HR functions can act in ways that lead to distrust among workers. Key factors that contribute to HR distrust within small businesses include the following:
- Poor communication
- Favoritism
- Disorganization
- Inconsistent policies
- Lack of empathy
- Failure to address employee concerns
- Lack of employee advocacy
Gaining Trust
By improving departmental practices and focusing on employee needs, small businesses’ HR teams can earn trust among workers and help create a positive workplace culture. The following strategies can build trust in HR:
- Invest in training your HR staff. Thorough and regular training and development equips HR teams with the skills and knowledge to support employees and address their concerns. For businesses with an HR department of one, this could mean upskilling or investing in that employee’s development so they can better serve the needs of employees.
- Practice transparency. Transparency entails open and honest communication about company policies, decisions and changes. This practice can help build trust with HR, as it reduces uncertainty and keeps employees informed.
- Align HR with employee needs. It’s imperative that HR understands and addresses the diverse needs of the workforce. HR teams should listen and respond to employee feedback and concerns, or even conduct a survey. This alignment fosters trust, allowing employees to feel seen and heard.
- Advocate for employees. When HR stands up for workers’ rights and well-being, employees are more likely to view these teams as their allies, thus instilling confidence and trust in HR.
- Focus on employee development and career advancement. Investing in employees’ careers and skills can show that HR is dedicated to their growth and personal development. In turn, this can gain workers’ trust, as HR demonstrates that it values their futures and long-term success.
Conclusion
Although it may be challenging for small businesses, it’s crucial to create productive HR functions so these teams engender trust among employees. By implementing strategies to address the key factors that lead to HR distrust, employers can reduce turnover and improve employee satisfaction and engagement, contributing to a healthy workplace culture.
Contact the local experts at Deeley Insurance Group today for additional HR and risk management resources.
