Employees who work for small companies don't Trust their HR department and they feel their HR shows bias, favoritism, and inconsistency!
Nicolas BEHBAHANI
Global People Analytics Leader | Future of Work | Leading Global HR Analytics, Driving Business Growth
?? 88% of people have worked for a small company with no dedicated HR person !
? Three in 10 employees believe a lack of HR department means the company doesn't care about employees.
?? Lack of HR department can lead to unfair workplace practices, as almost three in 10 have witnessed upper management take advantage of non-existent HR.
Even more alarming is that over a third of Americans don't trust their company's HR? according to a new interesting research published by SecureData using data ?? from 1,005 Americans who work for small companies with less than 50 employees during January 2024.
?Lack of trust in HR Department
Researchers found that 43% of employees who work with small companies said they don’t feel like they can confide in their HR.
The top reasons for distrust are that they feel their HR department shows:
? Bias
? Favoritism
? Inconsistency
?? Researchers believe that showing bias in any scenario, especially at work, can break trust as employees expect fair treatment. Whether it’s who lands the promotion, receives recognition, or other opportunities, the perception of favoritism can lead to a lack of trust since employees feel like certain individuals will always receive preferential treatment over others every time.
?So why employees stay at smaller companies?
Researchers noticed that many employees actively look for positions at smaller companies because they prefer the culture of the organization.
The top reasons employees who work at small companies stay at their companies are:
??Flexibility
??Job satisfaction
??Work-life balance
??Strong relationships with coworkers
?? Job Security
Researchers conclude that smaller companies often have a more flexible and relaxed culture that allows employees to maintain a better work-life balance and results in job satisfaction
?The top HR areas that employees feel their small company lacks
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Researchers found clearly that the lack of a department can paint a negative picture in all areas and the top HR areas that employees feel their small company lacks are:
1?? Training and development
2?? Employee communication
3?? Compensation and benefits.
4?? Performance Management
5?? Employee Recognition
6?? Employee Engagement
7?? Employee Onboarding
So almost three in 10 employees believe that a lack of HR department means he company doesn't care about employees.
?? Limited resources, less formalized policies, and small teams can make it challenging for employers to completely protect their employees' privacy. Whether it’s sensitive personal information or private information regarding their employment, small businesses often leave gaps for potential internal or external data breaches due to lack of resources.
?? Finally, researchers suggest some actions small businesses can take to improve this situation:
?? A dedicated HR Team: The truth is employees need and want someone who is dedicated to all things people and culture. Nearly half wish their company had a more structured HR department, but many companies lack in simple areas.
?? Great HR communication in the company: In terms of communication, regular feedback and communication between employees and HR can encourage dialogue and help workers feel heard and cared for.
?? Transparency in Compensation & Benefits: HR helps by conducting regular market analyses to ensure the employees' salaries remain competitive. When employers don’t align salaries and benefits with industry standards, the company risks losing its top talent. By prioritizing these areas, HR in small departments can contribute significantly to employee satisfaction, personal development, and overall organizational success.
?? Train employees about Data privacy: An important practice in all businesses is making sure that everyone is aware of data privacy practices, as this can minimize the risk of data being compromised.
?? ???? ???????????????? ????????:
This interesting research on small businesses demonstrates the crucial role that the HR department plays in restoring Trust with employees and thus the impacts on the key elements of a company's success, namely, commitment, performance, recognition, reputation and many more. As this research demonstrates, employees who choose to stay in a small company like this culture and the HR department must adapt to this demand. In short, fostering a transparent and fair HR environment is crucial to building trust regardless of the size of the company!
Thank you ?? SecureData researchers team for these insightful findings:
T.J. Burlee Dmitri Kardashev
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6 个月Building a strong HR team is key to fostering trust and transparency among employees in small businesses. ??
Work shouldn't suck, so create a better employee experience!
7 个月Nicolas BEHBAHANI this research really resonates with me. I have spent a large part of my career in small or medium sized companies with no HR, small HR footprint or decentralized HR in a mid-size global organization. It was at that mid-size global organization that I tripped and fell into HR. In my experiences many of the business leaders, owners and even employees have brought with them their negative experiences with HR at larger organizations. They try to do something different, but at a certain point an unstructured or chaotic HR function is too much for business leaders to manager and they often make a poor HR hire. They often hire a recruiting professional or an HR specialist - who does not have all of the necessary tools to create a solid HR foundation or build an HR Department. I know, I made a lot of mistakes myself in the early years. So, you end up with a self-fulfilling prophecy in the eyes of the employees, managers and leaders at the small business - bad HR. Start-ups and small businesses need an HR plan just as much as they need a business plan - because the two are connected. My advice - find an HR advisor or consultant to structure the plan for your organization.
Stopping the best employees leaving your business unnecessarily! Proactive People & Culture solutions for Startups, Scaleups & SMEs.
7 个月great post Nicolas BEHBAHANI thank you for sharing! I'm particularly interested in the reasons for distrust and the disconnect between business owners and employees because of it. Given the very different employment landscape in the US, I'd also love to see this survey and its results in Europe or globally ??
Challenging Assumptions and Reshaping Purpose, Policy, Process, & Products in the World of Work
7 个月Amanda Halle feels like this is a compelling argument for expanded fractional HR leadership ?? though is a fractional HR leader enough by itself to build trust with employees at small companies?
Head HR at AutoRABIT, Seasoned HR Leader | Strategic Talent Management | Employee Engagement Expert | Motivational Speaker & Team Builder
7 个月Nicolas BEHBAHANI, To rebuild trust, HR should prioritize understanding employees and adapting HR practices. Use simple tech for tasks like payroll. Show support and value to employees. Foster open communication. Be flexible to meet evolving needs. Follow legal rules to build confidence. This helps bridge gaps and restore trust between HR and employees.