New report highlights the rise of 'accidental' HR professionals in workplaces
The HR function is becoming "deeply undervalued" in many small organisations, a new report has warned, as the role gets delegated to other employees in businesses without dedicated HR teams.
Findings from FrankCrum, which surveyed 1,000 small business owners and employees who handle HR at their companies, revealed that 39% of firms have no dedicated HR department or employee.
Instead, responsibilities of HR leaders are handled by the owner (15%), shared informally (14%), or absorbed by an office manager (10%).
The report further found that just 13% of those with a role in HR decisions hold an HR-specific title, while 29% are administrative assistants, coordinators, or specialists, with no management title.
"More and more companies are relying on whoever is available to do the work, rather than finding the best person possible for the job," the report read.
"In this way, HR is becoming deeply undervalued, and the art of effective human resource management is going unlearned."
Becoming 'accidental' HR managers
According to the findings, HR responsibilities that trickle down to other employees start as a quick favour or a temporary fix that eventually turn into permanent positions.
Some 18% of the respondents said HR responsibilities entered their role "informally" and without any role change, while 14% said the tasks just developed gradually over time.
The report labelled them as the "accidental" HR managers, described as employees who never really chose the HR role but handle its responsibilities.
Nearly half of employees (43%) handling HR work said they spend 10 or more hours a week on it, with most of them saying it comes on top of the job they were hired to do.
But time spent on HR tasks has been expanding, with 59% saying it has increased in the past two years, including 20% who called the increase significant.
"This increase could easily lead to burnout among employees, as they continue to take on new tasks without a reduction in their former workloads," the report warned.
"Burnout becomes even more likely when they're handling high-stakes HR situations with little to no training."
The expanding HR tasks also do not come with appropriate compensation adjustments, according to the report.
Instead, only 34% of employees said their compensation increased when HR duties were added, while 42% absorbed HR responsibilities without any pay increase.
"A responsibility nobody negotiated is one nobody has to pay for. Many companies use that to their advantage," the report read.
Consequences await 'accidental' HR managers
The report warned that not having qualified people to do HR work can lead to delays in processes in the workplace, and can also expose organisations to legal risks.
Around a quarter of the respondents said they are worried about employee lawsuits, while 23% said they are concerned about wrongful termination claims. Others are also wary of the following:
- Employment law compliance (20%)
- Harassment or discrimination complaints (19%)
- Documentation errors (18%)
- Wage and pay disputes (16%)
- Workers' compensation claims (9%)
There are also risks when unqualified employees utilise artificial intelligence (AI) tools to carry out HR-related tasks, a practice that half of small businesses are guilty of.
AI is commonly being used by small firms to research HR questions, create onboarding materials, draft handbook content (26%) and guidance for disciplinary actions or terminations (25%).
Another 24% said they use the technology to draft their own workplace policies.
"As AI tools become more and more common in the workplace, a thorough and documented review policy is more important than ever," the report said.
What can small firms do?
The report advised leaders of small businesses to "take decisive action."
"Write down who owns terminations and who keeps the personnel file, and that question stops being improvised in the week it matters most," it said.
"Decide in advance who gets the call when a situation outruns what the person in the chair knows – an employment attorney or an outside HR line, whichever fits – and put the number somewhere findable at 4 p.m. on a Friday."
On AI-generated HR materials, the report suggested ensuring that they are reviewed by experts.
"None of that is paperwork for its own sake. Small businesses that treat HR as a real assignment, with a budget behind it and someone to own these processes, face fewer consequences and spend less time chasing documentation," it said.
