"I Can Just Handle HR Myself"Why This Mindset Could Cost You More Than You Think
- Admin
- May 15
- 3 min read
If you are a small or medium-sized business owner, chances are you wear a lot of hats. You are the CEO, CFO, Sales Lead, Operations Manager, and - because someone has to do it - the HR department. And sure, you might think, How hard can HR really be? It’s just hiring people and making sure they get paid, right? Not quite.
The truth is, HR is one of the most critical yet underestimated functions of a business…and when it’s mishandled, it can lead to legal troubles, high turnover, and a workplace culture that drives your best people away. Let’s break down why handling HR on your own isn’t just risky, it is costing you time, money, and peace of mind.
HR is more than just Hiring and Firing
Many business owners assume HR is just about bringing new employees on board and letting them go when the situation warrants it. In reality, HR is about everything that happens in between, including:
Keeping up with constantly changing employment laws, ensuring you’re paying employees correctly, and managing workplace safety regulations.
Creating a work environment that keeps employees motivated, productive, and loyal to your business.
Providing feedback, setting goals, and handling workplace disputes before they escalate into full-blown legal issues.
Helping employees grow so they can help your business grow.
Setting expectations, defining company values, and creating a culture where people actually want to work.
The question isn’t can you handle all of this yourself - it is should you?
The cost of HR mistakes can be huge
Let’s talk risk. The “DIY HR” approach often leads to small oversights that turn into big problems. Here are just a few common (and expensive) mistakes:
Mixing up casual vs. permanent employees or getting contractor arrangements wrong can result in penalties, back payments, and even lawsuits.
Underpaying employees—even unintentionally—can lead to legal action, Fair Work claims, and reputational damage (just ask some of Australia’s biggest brands).
Dismissing an employee without following due process? That could land you in an unfair dismissal case before you even see it coming.
Without proper policies and leadership development, you could be churning through employees—which costs time, money, and productivity.
Even one mistake can be enough to cripple a growing business. An HR expert ensures you get it right the first time, avoid costly mistakes, and protect your business.
Time is money - and HR is a massive time drain
Let’s be honest: HR is time-consuming.
Between payroll queries, contract reviews, hiring processes, compliance updates, and workplace disputes, HR eats up hours that you could be spending on business strategy, sales, or client growth.
Imagine spending 20 hours a month managing HR instead of working on your business.
At an average business owner’s rate of $100/hr, that’s $24,000 per year lost to HR admin alone!
And that’s without factoring in mistakes, lost productivity, or turnover costs.
We take that burden off your plate, so you can focus on what you do best.
HR Compliance is a moving target
Employment laws don’t stand still. Fair Work Australia constantly updates its regulations, and keeping up is a full-time job. Recent HR updates businesses need to comply with:
Employees now have the right to ignore work calls/emails after hours.
Casual workers now have more rights to convert to permanent employment.
Employers must actively prevent workplace stress and mental health risks.
Do you have the time, expertise, and processes in place to stay compliant with every new regulation? If not, you could be unintentionally breaking the law - which isn’t a great look when Fair Work comes knocking.
HR is an Investment
Think of HR as insurance for your business. You wouldn’t drive a car without insurance, so why run a business without HR protection?
A good HR strategy doesn’t just reduce risk—it makes your business stronger. Companies that invest in HR:
✔ Retain their best employees (less turnover = lower recruitment costs).
✔ Have engaged, high-performing teams (leading to better customer service and higher profits).✔
Operate with confidence (knowing they’re legally compliant and protected).
Fractional HR services allow you to get expert-level support at a fraction of the cost of hiring in-house. It’s a scalable, cost-effective, and smart way to protect and grow your business.
The Bottom Line is to stop winging it…start doing it right
HR isn’t just an admin task—it is the foundation of a successful business. The “I’ll handle it myself” approach might work for now, but as your business grows, the risks (and workload) grow with it.
At HRxP, we help small and medium-sized businesses navigate HR the right way so you can focus on running your business without the compliance headaches or costly mistakes.
Ready to free yourself from HR stress? Let’s chat.
Visit www.hrxp.com.au to find out how fractional HR support can save you time, money, and a whole lot of trouble.
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