The Real Cost of Getting HR Wrong and How to Avoid It

Running a business isn’t easy. Every day, there are decisions to make, people to manage, and risks to juggle. But when it comes to HR, even the smallest mistake can have a big price tag attached to it. From costly tribunals and compliance breaches to reputational damage and lost productivity. The real cost of getting HR wrong can quietly drain your time, resources and finances.

The good news? Most of these problems are completely avoidable.

From our Lincoln and London offices, we work with businesses throughout the UK to help them protect their people and their profits through outsourced HR support. Here’s how outsourcing can save you from the hidden costs of getting HR wrong.

1. Avoid Expensive Legal Mistakes 

Employment law is constantly changing and staying compliant can become a full-time job. A simple oversight in a disciplinary process, a missed step in redundancy, or an outdated employment contract can quickly lead to a tribunal claim. In 2024, the average cost of defending an employment tribunal was over £13,000. That’s before factoring in any settlement or reputational fallout.

Our friendly team at Amica HR helps you stay one step ahead of employment law, ensuring your contracts, policies and procedures are always up to date. We don’t just help when things go wrong, we help to prevent them in the first place.

2. Reduce the Risk of Conflict and Mismanagement

Employee relations issues such as grievances, bullying or underperformance are some of the most time-consuming and stressful challenges for any business owner. When not handled correctly, they can escalate quickly, damaging morale and productivity across the business.

With Amica HR, you get access to experienced HR professionals who can manage sensitive issues fairly and legally. Whether you need ad-hoc support for a tricky case or fully outsourced HR to manage it all, we’ll make sure problems are handled calmly, consistently and correctly.

3. Protect Productivity

HR mistakes don’t always make headlines, sometimes they simply chip away at performance. Unclear processes, inconsistent feedback, or poor absence management can all lead to lower productivity and higher turnover. These hidden staff costs add up, especially for smaller businesses where every person counts.

Outsourcing HR gives you access to tried-and-tested systems for performance management, absence tracking and employee development, helping you build a happier, more productive workforce, without the stress of doing it all yourself.

4. Gain Peace of Mind and Predictable Costs

HR risks can be unpredictable, but your costs shouldn’t be. Amica HR’s outsourced and retained HR packages give you consistent, expert support at a fixed monthly rate. That means no surprise bills, no costly emergencies, and complete peace of mind that your HR is being handled by people who know exactly what they’re doing.

You’ll spend less time firefighting and more time focusing on what really matters — running and growing your business.

Avoid the Hidden Costs of HR Mistakes, Before They Happen

Whether it’s a one-off issue, a compliance concern, or the need for ongoing support, Amica HR can help you protect your business, your people, and your profits.

Book a free consultation today to find out how our outsourced HR services can help you stay compliant, reduce risk, and save money.