Many organisations do not understand the widespread benefits of a risk management strategy. In many cases, they might be unable to accurately define risk management! This creates a problem. It’s hard for senior directors to get the buy-in to implement mitigation procedures when risk management isn’t common knowledge. Here at Impaqt we have developed a risk management offering to help support business leaders fulfil their vision of running safe, efficient, high-quality organisations.
The beauty of a well-implemented risk management program is it’s built on a foundation of standardised risk assessments to help companies prioritise their risk based on its potential impact. It is better to know, understand and manage risk as the risk is there. Taking a proactive approach to risk management will give the following benefits:
Everyone has to manage risk
Every organisation faces risks. Risk is inevitable in order to achieve success. The purpose of risk management is not to eliminate all risks. It is to minimise the potential negative consequence of risks. By working with Impaqt risk managers, employers can make smart risk decisions to improve the chance of reward.
HR risk management makes life easier
HR Risk Management focuses on risks posed to the business as a result of poor employee performance and behaviour, inadequate employee management or lack of compliance with employment legislation. By the time these issues come to light, it’s often more difficult to resolve them so managing the risk up front simply makes life easier. Knowing what to do and when to do it also reduces the time involved in dealing with issues and the stress that goes along with it.
HR risk management improves efficiency
Employees who are underperforming are not only inefficient themselves, but they also impact on the efficiency of those they interact with in their work. By working with Impaqt HR Specialists, employers can reduce this effect and improve efficiency across the organisation.
HR risk management helps with employee retention
Building a retention strategy is part of HR risk management, and is increasingly important given the current effects of ‘The Great Resignation’. By identifying potential problem areas, taking steps to address them and increasing employee engagement, motivation and morale, company culture improves, leading to increased retention. Gallup have found that companies who focus on this have 72% lower attrition.
HR risk management creates financial benefits
Research shows that senior management teams of SME’s typically spend 18 hours per week on HR related matters. That’s a lot of time and money! Here at Impaqt we can give you some of that time back. By engaging with our HR specialists, your risks can be effectively managed, reducing the amount of time spent reacting to issues or researching the latest guidance to remain compliant. It also helps to prevent costly tribunal claims. Add to that the savings associated with improved employee retention, both in relation to the cost to hire, and the loss of productivity in the handover and onboarding process and the financial benefits are clear to see.
HR risk management prevents reputational issues
Many HR risks involve a reputation factor: something happens that causes the public to negatively view the organisation, particularly if an issue escalates to tribunal. The current negative press for P&O Ferries shows the impact of poor HR risk management, and whilst this might be an extreme example, it shows what can happen as a result of a fundamental failure to follow correct HR processes. Tribunal issues could impact other employees as well, causing them to consider their ongoing employment with the organisation and also make it more difficult to attract new talent. Good HR management improves compliance and greatly decreases the likelihood of this fallout. When an issue with an employee inevitably occurs, sound HR processes coupled with professional support will help to resolve the matter and lower the chance of escalation to tribunal with the associated negative consequences.