In the fast-paced, often chaotic world of small and medium-sized enterprises (SMEs) and family-run businesses, every decision counts. Time is precious. Resources are tight. Yet, amidst efforts to control costs, maintain operations, and grow revenues, one of the most critical roles in building a successful, sustainable company is routinely neglected: the Human Resources (HR) manager.

Many times I get to face situations where the HR function is either poorly executed (especially if it is just botched up with the Operations or Finance function) underfunded, or entirely missing. Overall the HR function in many SMEs and family businesses is treated as a back-office afterthought. When there’s no one clearly responsible for managing people strategically, it’s no wonder that attracting and retaining top talent becomes a chronic struggle.

It’s ironic. The very businesses that complain about their inability to hire the right people, improve team morale, or reduce employee turnover, often do not have a qualified HR manager in place. They suffer from symptoms they are unwilling to treat. They expect excellence from employees but fail to provide a structured environment where excellence can thrive. This is not just an operational oversight — it’s a strategic blunder.

The Cost of Not Having HR Strategy is huge. Unfortunately it is rarely captured by financial statements, but it is still there. When strategic HR is poorly managed or completely absent one can expect the below outcomes

• Recruitment becomes guesswork. Without a structured recruitment process, businesses employ reactively, often selecting candidates based on gut feeling rather than fit, skill, or long-term potential.
• Induction is haphazard. New employees receive no real orientation or integration support, leading to confusion, low engagement, and early exits.
• Employee motivation is a mystery. Without consistent feedback & recognition systems or clear career paths, morale tanks — and good people leave.
• Conflict management is ignored. Interpersonal issues fester because there’s no trained mediator or policy framework to resolve them fairly.
• Compliance risks rise. Employment laws, workplace safety, and fair employment practices are not optional. Without HR expertise, businesses unknowingly expose themselves to legal trouble.
• Culture becomes toxic. In the absence of deliberate culture-building, unhealthy habits take root — favoritism, gossip, disengagement, micromanagement and burnout.

The absence of a dedicated HR manager isn’t just a gap in the organisational chart. It’s a silent saboteur of growth. I have heard all of the usual excuses why not to employ an HR Manager. These range from “We’re too small to afford an HR Manager” or “We’re like a family here — we don’t need formalities” or “We’ll deal with people stuff when we grow”

But here’s the truth: the earlier you invest in HR, the fewer crisis you’ll need to handle. You don’t need a large department. You need one committed, qualified person, even if outsourced, who can roll out foundational policies, track performance, drive recruitment and build a healthy workplace culture. If you wait until you’re big enough, you’ll be dealing with big enough problems that could have been avoided.

Imagine the shift if HR was treated as a driver of growth instead of an administrative burden.

• You attract better talent because candidates see your company has structure and purpose.
• You retain top performers because they know they’re seen, supported, and have room to grow.
• You build a real culture that people want to be part of — not just a way to get their monthly salary
• You become proactive, not reactive, in all your people decisions.
• You align everyone with your mission, values, and business goals.

A great HR manager doesn’t just handle paperwork — they create the systems that power your people. And your people are your business.

So my heartfelt appeal, to every small business owner and family business struggling with recruitment and employ engagement : Stop seeing HR as optional. Start seeing it as essential.

Hiring a skilled HR professional is not a cost — it’s an investment in your most valuable asset: your team. Without a strategy for how to find, develop, and retain talent, you’ll always be fighting an uphill battle, no matter how good your business is. Don’t let your future be held back by a completely lacking HR manager. Prioritise it. Invest in it. And watch your business transform from the inside out.