Why Small Businesses Need HR

Chris Goodwin, SHRM-SCP

Initially, when you become a small business owner you wear many different hats. As your business begins to grow it’s necessary to offer those hats to other people to manage your success. For some small businesses, this proves challenging. After all, you’ve been doing it all so far and success has found you nonetheless.

But there comes a time in every small business when the management-related tasks begin to bog you down and you feel overwhelmed. You need someone with experience and knowledge in HR. As a small business owner, you likely view the process of bringing in a team member specifically for HR as an unnecessary cost. But in reality, HR is a very beneficial investment for you and your team.

 

What Exactly is HR?

Human Resources, by definition, is the workforce of your business; the resources that make your business move forward, and there is nothing more valuable to any size business than their people. The term HR also refers to the person or team whose job it is to promote an equitable and fair relationship between employee and employer, manage policies, oversee benefits and ensure compliance with employment law, appropriate agencies, and directives. There are also additional tasks which the HR department oversees typically as they pertain to the type of business conducted.

 

What Can HR Do for My Small Business?

HR is responsible for managing the employee “life cycle”. From recruiting employees until the employee leaves your organization, tasks related to the term of employment are the responsibility of the HR department. Here’s a more in-depth look at just what duties fall under HR and how your small business can benefit.

• Hiring and Retaining New Employees: HR works with small businesses to manage hiring new employees. Through their methods, you will attract and recruit the talent you need for the job. HR services write job descriptions, place appropriate ads, ensure a thorough resume and application process, interview, perform necessary reference and background checks, and put together job offers. HR manages disciplinary actions, termination of employment, and lay-offs per employment regulations.

• Training: Onboarding, training, and retaining employees are all part of a positive employee experience and help your business excel. HR implements these duties as efficiently as possible all while building your brand as an extraordinary employer.

• Benefits and Compensation: HR professional services have the knowledge and experience in all things regulatory. Most small business owners do not. That being said, HR personnel understand the federally mandated employee benefits. They understand all aspects of employee compensation and payroll including taxes, unemployment insurance, workers’ compensation, timekeeping, payroll, and benefits. 

• Creating Employee Guide: In today’s litigious environment all policies, practices, and procedures need to be spelled out effectively. Rules of conduct must be clear to all and comprehensive so there is zero opportunity for confusion. Anti-discrimination, sexual harassment, diversity, discipline, complaint reporting, and hiring practices should all be in your employee guide or handbook. Your handbook should also contain your core values as a business, your mission statement and your vision. HR professionals know about creating a comprehensive employee guide for your protection and the protection of your team.

• Employee Reviews, Evaluations, and Exit Interviews: Certain regulations and employment rules govern a business’s practice when it comes to reviews and evaluations. You’ll also learn a lot about how your employees feel about you. When these reviews, evaluations, and exit interviews are handled by a knowledgeable HR professional you’ll gain insight and find out where you excel and where you are falling short from your employees’ viewpoint. Additionally, your HR can conduct the process in a positive way.

• Ensuring Compliance With Employment Law: The laws governing employment are many and often changing. HR understands the local laws as well as state and federal mandates. There may be paperwork that you need to handle such as I-9 documents for US Citizenship, proof of certification and education, tax records, medical records, etc. Adherence to labor laws such as the Fair Labor Standards Act (FLSA), Americans with Disabilities Act, and Family and Medical Leave Act also falls under the HR umbrella.
  
   

Meet Your Needs, Achieve Your Vision 

Every business that employs people has HR needs. Smaller companies typically share the HR duties among those employees. Unfortunately, these duties can easily get out of hand. If the employee who handles payroll needs extended time off, or the individual who onboards and trains new hires becomes overwhelmed by a company “growth spurt” the disorganization quickly threatens your company’s success. That’s why you need a dedicated HR system.

There is so much more to HR than hiring and firing. And as your business grows tasks such as payroll, benefits, performance reviews and the like begin to bog down even the most organized and energetic boss. Administrative tasks, taxes, compliance with state and federal laws and regulations easily become overwhelming. 

Nearly half of all small businesses handle their HR duties in-house. In many cases, the task of managing human resources is handed off to an employee with little to no experience in management. This mistake not only causes issues with your employees, but it could also end up costing you money and even become a source of trouble with certain government agencies.

HR helps small businesses stay ahead of the game. Just don’t wait until you need them, like when a former employee files an unemployment claim or a team member needs to take medical leave. If you have HR services your policies will be in place and your HR professional will know how your small business should respond. Think of HR as a proactive move to ensure your role as an employer and protect your business. They are an investment in your most valuable asset-your team. 

 

Professional HR Services Bring Plenty to The Table

Why do you need HR for your small business? To free yourself from the stress and worry of administrative duties, agency compliance, employee benefits, and all that is necessary to the life cycle of an individual's employment. 

Cornerstone Coaching & Consulting is here to help you with all of your HR needs. Our professional consultants excel at top-tier HR solutions and are experts at customizing them to the needs of your business and your workforce. 

Get out from under the business of doing business; celebrate your wins, create more ways to grow, and encourage your team! A healthy balance makes for a healthy company. Ultimately, engaging professional HR services allows you and your team to grow in amazing ways. Contact Cornerstone Coaching & Consulting for more ways HR can help you.