The Benefits of Human Resources for a Small Business
As a small business owner, you wear many hats. One of these most likely includes human resources. From payroll administration to onboarding employees, there are many HR responsibilities for small business owners to juggle.
According to a survey conducted by SHRM, roughly 54% of small companies handle the burden of HR tasks themselves or delegate the responsibilities to staff with little to no experience managing employees. The survey also found that 81% of these employees are not confident in their HR skills and fear that they may make a mistake.
These errors can be costly as your company could have employee morale decrease, be charged with non-compliance penalties or be at risk of lawsuits. These statistics show that it is imperative that employers understand if their current employees can handle the HR functions themselves or if they may need to hire an HR team.
If you find yourself struggling to stay on top of HR tasks, it might be time to consider creating your own HR department. HR professionals are trained to handle HR issues, employment laws, employee well-being, and are able to develop policies for your organization. HR is a vital resource not only for small business owners but also for your employees, as the professionals will be able to provide your company the following:
· Ensure Compliance with Employment Law
· Hire and Retain Employees
· Employee Training & Development
· Compensation & Benefits
· Maintain the Employee Handbook
· Handle Performance Evaluations and Reviews
You may be asking, “How do I get started developing an HR team for my small business?” The first step is determining your company’s needs. It is important that you build your team with the needs of your company in mind so that you hire specifically for those desired skill sets.
Once you have determined this, it is time to hire an HR professional. Please note that not every HR personnel is going to have every skill you are needing, so you may have to hire an additional individual to join your team.
If you have a smaller company and feel it is not necessary to hire a full-time staff member, you may want to consider outsourcing HR. This is a great option because you only have to hire for the expertise you are needing such as payroll or benefits management. If outsourcing doesn’t seem like a good option for your business, purchasing HR software may be the right fit for you. HR software can help you become more organized and run your business more efficiently.
Depending on the HR software you choose, the program may be able to assist you onboard new hires, pay staff, and organize employee files. Although purchasing software will help reduce HR burdens for your business, as your company begins to grow, it may be more beneficial to hire a trained professional to assist you with HR tasks.
