WEST Wimmera Shire Council has blocked the employment of a human resources professional, despite chief executive Mark Crouch labelling the need for one as critical.
At a council meeting on Thursday night, Mr Crouch said the Edenhope and District Memorial Hospital planned to hire a human resources person part-time.
He told council he intended to share resources with the hospital and employ a human resources professional full-time to work at both organisations.
Mr Crouch said there were significant risks involved with not having a human resources person.
"We are subject to the same legislation and pressures as other organisations - whether we are small or large," he said.
"This is an issue I need to manage and it is a critical component of employee management in any business."
Mr Crouch said human resources duties were currently being completed by other council staff.
But councillors did not support the proposal because of a lack of discussion about the budgetary implications.
The job would be funded from council's 2013-14 budget.
Mr Crouch said the cost was not yet known.
He said without the role, any deficiencies in the organisation could cause major legal and organisational problems for a business.
Mr Crouch said staffing was his responsibility.
"There are no excuses not to meet human resources requirements and I am already uncomfortable with a range of things that go on in council," he said.
"The failure of organisations to address human resources issues in a professional manner can result in serious systemic failures and cost.
"The hospital is already moving on this and it will be a missed opportunity if I sit on my hands."