8 reasons why every small business needs HR

1. Hiring and firing

Hiring a new employee can take a lot of time – time that, as a small business owner, you don’t have. If you have positions that need to be filled (and growing companies often do), you need someone who can dedicate their time to hiring and everything that entails. That means recruiting, sifting through CV’s, screening applications, setting up interviews, selecting candidates and more. Hiring new employees is incredibly important – you want to find the best talent and the best fit the first time around, so you don’t end up wasting time or money. And to do that, you need HR.

2. Employment law

Another reason you need a human resources professional? They know the ins and outs of employment law. All it takes is one mistake when hiring or terminating a staff member, and you could get slapped with tribunal paperwork. If you don’t know employment law, you could be putting yourself, your business and your reputation at risk. To avoid court cases and internal conflicts, retain a HR professional who knows how to remain compliant with employment law.

3. Employee files

Do you know what needs to be kept in an employment file? What checks you have to conduct when hiring staff? HR professionals will know what documents you need to store, when you need to update them, and where they should go, as well as keep them organised and easily accessible.

4. Handbooks and manuals

Do you have an employee handbook? If not, you should. Even if you only have a few employees, you still need a manual or handbook to lay out the rules, regulations and expectations you have for your employees. Handbooks make it easier for employees to know exactly what’s expected of them, but they can also be used to cover your back in case of employee disputes.

5. Performance Improvement

Human resources develop performance management systems. Without a human resources staff person to construct a plan that measures performance, employees can wind up in jobs that aren’t suitable for their skills and expertise. Additionally, employees whose performance falls below the employer’s expectations can continue on the payroll, thereby creating wasted money on low-performing employees.

6. Conflict Resolution

Workplace conflict is inevitable, given the diversity of personalities, work styles, backgrounds and levels of experience among employees. A human resources manager specially trained to handle employee relations matters can identify and resolve conflict between two employees or a manager and employee and restore positive working relationships.

7. Training and Development

Human resources conduct needs assessments for the businesses current workforce to determine the type of skills training and employee development necessary for improving skills and qualifications. Businesses in the beginning or growth phases can benefit from identifying training needs for existing staff. It’s much less expensive than the cost to hire additional staff or more qualified candidates. In addition, it’s a strategy that also can reduce turnover and improve employee retention.

8. Employee Satisfaction

Human resources specialists usually are charged with the responsibility of determining the level of employee satisfaction — often an ambiguous measurement at best. With carefully designed employee surveys, focus groups and an exit interview strategy, human resources determines what underlies employee dissatisfaction and addresses those issues to motivate employees.

HR on a small-business budget

The bottom line? Even small businesses need some kind of HR presence. There are a number of things that human resources professionals can do for a business that other employees just can’t. You’ll save time – and likely money – in the long run by using HR from the start.

Keep in mind – you don’t necessarily need to hire a full HR department. One person may be able to handle all the HR duties of a small business. BHR provide ad-hoc and regular HR support to small business. Contact us today for a free 15 minute consultation.

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