As a small business owner, it’s easy to push HR tasks to the back burner. After all, you have sales to close, clients to serve, and operations to manage. But ignoring HR doesn’t just delay decisions—it creates risks that can cost your business thousands of dollars.
From lawsuits to employee turnover, the cost of avoiding HR often far outweighs the time and effort needed to address it.
Let’s look at how “doing nothing” in HR can hurt your business—and how you can take simple steps to protect yourself and your team.
The Risk: Many small business owners believe they’re too small to face lawsuits, but this couldn’t be further from the truth. In Ohio, businesses with as few as four employees can be sued for discrimination. Without compliant policies or processes in place, even minor issues can escalate into costly legal battles.
Real Case: A small tech company in Ohio faced a $40,000 settlement when an employee alleged harassment. The employer had no anti-harassment policy or reporting procedure, which weakened their defense and increased the settlement amount.
The Cost of Doing Nothing: Legal fees, settlements, and fines can quickly add up—potentially bankrupting a small business.
The Solution: Having an employee handbook with clear anti-discrimination and harassment policies reduces your legal risk and provides documentation to protect your business.
The Risk: When employees don’t understand their roles, expectations, or workplace policies, they’re more likely to feel frustrated and leave. High turnover costs your business time and money while disrupting productivity.
Real Case: A small retail business in Dayton lost three employees within six months due to confusion about time-off policies. Without written guidelines, managers approved time off inconsistently, creating tension among staff.
The Cost of Doing Nothing: Replacing an employee can cost up to 30% of their annual salary—and that’s before you factor in the productivity losses caused by turnover.
The Solution: Job descriptions and a well-crafted employee handbook set clear expectations, foster fairness, and improve employee satisfaction.
The Risk: Skipping important HR steps, like collecting I-9 forms or classifying employees correctly, can lead to fines from regulatory agencies.
Real Case: A restaurant owner in Cleveland was fined $15,000 for failing to properly document work eligibility for new hires. The owner wasn’t aware of I-9 requirements and had no onboarding checklist to ensure compliance.
The Cost of Doing Nothing: Compliance penalties can wipe out your profits and damage your reputation with employees and regulators.
The Solution: A standardized onboarding process, complete with a checklist for required forms, ensures you meet compliance standards and avoid costly penalties.
The Risk: Without clear job descriptions, employees may struggle to prioritize their tasks, leading to wasted time and reduced productivity.
Real Case: A landscaping company in Troy found that two employees were duplicating work because their roles weren’t clearly defined. The confusion cost the business an estimated $5,000 in wasted labor over a six-month period.
The Cost of Doing Nothing: Miscommunication and inefficiencies caused by unclear roles hurt your bottom line and your team’s morale.
The Solution: Well-written job descriptions clarify responsibilities and keep your team focused on their most important tasks.
The Risk: As your business grows, so do your HR needs. Without foundational processes like job descriptions, onboarding, and employee handbooks, scaling your team becomes chaotic and unsustainable.
Real Case: A growing e-commerce business in Ohio struggled to onboard new employees during their busy season. The lack of a consistent onboarding process led to delays in training, errors in payroll, and frustrated hires—some of whom quit within the first 30 days.
The Cost of Doing Nothing: Missed opportunities to scale effectively can limit your growth and damage your reputation with customers and employees.
The Solution: Setting up foundational HR processes now ensures your business is ready to grow smoothly and successfully.
Take Control of Your HR Before It Costs You
The good news? Addressing these HR challenges doesn’t have to be overwhelming. Our HR Foundations Workshop is designed to help small business owners like you build the tools and processes you need to protect your business and create a thriving workplace.
HR Foundations Workshop Details:
Dates: February 11 & 25, 2025
Time: 10:00 AM - 1:00 PM EST
Location: Troy, Ohio
Cost: $3,000
What You'll Walk Away With:
Don't Let the Cost of Doing Nothing Hold You Back