Managing directors of small and medium-sized enterprises (SMEs) would rather take charge of HR themselves than appoint an HR director or outsource to a third party.
A survey of 200 company heads, by the Institute of Directors (IoD), revealed that 55% managed the HR process directly, spending up to one day a week resolving HR issues.
Although 88% of respondents admitted that finding the right staff was a challenge and keeping up with legislative changes in the workplace often difficult, 64% said they would be reluctant to give up control.
The Small Business Recruitment and Retention Survey, sponsored by recruitment firm Adecco, also showed that 20% of managing directors did not invest enough money in managing HR.
And while most companies believe their HR policies are clear, 41% of the respondents admitted to not having a formal recruitment policy in place to find the right staff.
Richard Wilson, head of business policy at the IoD, said: “HR issues take a significant portion of directors’ time, but it’s typically done on a reactive basis.
“Small businesses also struggle to keep up with the increasing amount of legislative red tape which, if not properly administered, can end up costing businesses a lot of money.”