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Does A Small Business Need Human Resources?

Does A Small Business Need Human Resources?

When beginning a small business, you should ensure you have all the necessary pieces to make your venture successful. One key area that many small businesses overlook is human resources (HR). Many assume they don't need HR because they're small businesses, but this isn't true.

If you're unsure whether you need HR for your small business, keep reading.

What Is An HR Department?

A human resources (HR) department in any organization is responsible for various duties, from recruiting and hiring employees to onboarding new hires, running payroll, and managing employee benefits.

HR departments also handle employee relations issues, such as resolving conflicts or investigating complaints of harassment or discrimination. Further, there are several state and federal laws governing - and requiring - employers to do certain things. These laws in include COBRA (for when an employee quits or is terminated), FMLA (for certain types of leaves), and payroll (lots of reporting requirements!).

For "small" employers, someone has to handle benefits, payroll, etc. In some cases, that person is often the manager or the business owner. Unfortunately, these individuals often do not have sufficient training, or are overburdened by their other responsibilities, meaning that it is easy to either not know certain requirements or to miss them entirely.

Benefits Of An HR Person For A Small Business

  • More Streamlined And Organized Operations
    Running a business is no easy feat. There are a million and one things to keep track of, from inventory to marketing to sales. This can get overwhelming quickly, especially if you're trying to do it yourself. A dedicated HR person can help take some of the load off your shoulders by handling payroll, employee benefits, and compliance with employment laws.
  • Easier Employee Communication And Coordination
    Whether you have two employees or 200, someone needs to keep the lines of communication open and flowing in both directions. That?s a big job, and HR professionals are uniquely qualified and experienced to manage it.

    An effective HR person can help you develop policies and procedures that ensure everyone knows how things are supposed to work and what is expected. They can help you create a system for tracking employee performance and identifying training and development needs.

  • Better Retention Of Employees
    Employee retention is vital for the success of any business. Having an HR department can create and implement policies that will make your company a more attractive place to work. This can lead to fewer employees leaving, which saves money and helps to keep your business running smoothly.

    In addition, HR can help you identify the root causes of why employees are leaving. This information can be used to make changes that will prevent future turnover.

  • Increased Efficiency And Productivity
    Your organization benefits when you free up your employees to do the work they're good at - and have someone whose job it is to handle the rest. Your business will run more smoothly. Your employees will be happier and more productive, and you'll see the results in your bottom line.

    All told, someone trained in HR can help small businesses save money by:

    • Reducing turnover
    • Improving employee productivity
    • Minimizing the risk of lawsuits and penalties
Suggestions For "Small" Small Businesses

As mentioned above, "small" employers have to have someone to handle benefits, payroll, etc. If your business is "too small" to have a dedicated person handle HR and instead have someone handle HR as a part of their regular duties, then that person needs both initial training and ongoing training to keep abreast of regulatory updates, changes in best practices, compliance requirements, etc.

The best way to do so is to take an HR Generalist class, which provides training on a wide array of human resources areas [ View Course Agenda ].

For Additional Help provides numerous training and certification programs to help employers comply with state and federal rules.

Courses include in-person or virtual seminars, online courses, and webinars on basic, advanced, and specific topics. For instance, on payroll and workers compensation, we offer training on garnishments, visas, and handling fraud, plus many other specialty areas.

Contact us today to learn more about our HR training and certification programs and how we can help your business meet its compliance obligations.

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