13 business and nonprofit areas where it doesn’t pay to pinch pennies
Small businesses and nonprofits always have to be conscious of their spending and find ways to do more with less. While financial discipline is a necessary trait among leaders who are managing with limited budgets, the instinct to save every possible dollar can sometimes go too far. To succeed, every organization needs to have quality supportive services and processes. And while investing in team members comes with short-term costs, it nearly always pays long-term dividends.
It’s undoubtedly important for small-business and nonprofit leaders to regularly review expenses and look for ways to save, but there are certain functions and investments where it really doesn’t pay to pinch pennies. 13 members of Business Journals Leadership Trust share some of the areas that many small businesses and nonprofits don’t budget enough money for and why skimping on these expenses can be a costly mistake. Here are insights from Mark D’Agostino.
4. Human resources
This is an easy question to answer — it’s HR! Many organizations, especially growing ones, jump right into recruiting efforts before building a solid HR foundation. Then afterward, they experience retention issues. I regularly see companies focus on finances and operations first and their people processes (HR) last.
Mark D’Agostino, ConnectedHR