I’ve had terrible luck with incompetent HR managers and I don’t even know where to begin fixing the problem.
I think the smart move right now would be to meet with an HR consultant, to talk about how they can help improve your company’s HR practices. They can help you formulate more efficient HR solutions and streamline processes to create a more efficient work environment.
My boss went through a similar dilemma with one of the companies he started. After working with an HR consultancy firm, business started picking up as he was able to delegate non-core functions to a qualified professional while he focused on developing better business strategies. He’s worked with the same firm ever since. Maybe they can help you. I don’t know if you’re anywhere near London, but it wouldn’t hurt to email them and ask for their opinion. Visit their website at http://www.peoplemanagementpartners.co.uk/. I hope this helps. Good luck!