A common statement echoed by many small business owners is, “I’m a small business. I manage all HR related tasks, and don’t need HR…yet.” And, the most common question asked is, “I’m a small business, why do I need an HR generalist when I can do it myself?”
Many small and medium-sized businesses will take on human resource duties, as well as payroll and tax management, reception, and multiple other hats to save money and run as lean as possible. Every situation varies, but this is only a perception of savings!
As business rules become more complex with compliance issues and employee management risks, there is an emerging trend for small businesses to outsource HR responsibilities.
Yes, you can manage HR yourself, but you can also be more effective in other areas of your bourgeoning company. By outsourcing these administrative duties you save time, (which equates to cost savings) and ensure compliance throughout your organization. Legislation is changing compliance requirements frequently and outsourced HR professionals are required to remain educated and certified. This ensures compliance, and helps avoid pricey penalties.
Human Resources are valuable and can be extremely helpful to the small to medium-sized business. Here are some top reasons where human resources bring incredible value.
Labor Cost Management
Whether you are a scaling start-up and hiring frequently, or a seasoned veteran of business, talent acquisition, onboarding, management, and development are key cost factors in your organization.
If you are hiring with frequency to keep up with internal demands, you may need assistance to help manage the effective recruitment. You want to hire star talent to ensure you hire correctly the first time, and minimize your time spent on turnover. Leave this to the HR professionals!
The management and development of employees is also critical in maintaining top talent that will continue to drive sales and customer service to increase business. Making sure you have the right people in the right positions is a long-term strategy that requires evaluation and review.
Employee Satisfaction
Determining employee satisfaction can be an ambiguous task, but can be measured through due diligence. The human resources specialist can address employee dissatisfaction, as well as training and development needs to get to the core of what could be affecting their motivation.
The HR specialist will also have appropriated documents that aid in career path goals, performance documentation and exit strategies, and have the training to discern which path is best for the employee and organization.
Conflict Resolution
Every company hopes to avoid conflict, but it’s inevitable. Employee relations are influenced by many factors – education, personalities, work ethics, and overall experience. An HR specialist is trained to manage and resolve conflicts to restore healthy working relationships.
Compliance
There are frequent legislative changes that affect compliance measures, making navigation of these rules difficult. Simple situations can be a little tricky for both employee and employer. It’s imperative to understand what course of action situations require.
An HR specialist will know which questions to ask, or not to ask. They will also know how to properly document occurrences to ensure the rights of both parties are protected. One mis-step, and it could cost you dearly.
There will always be varying factors that will determine your level of human resource management and engagement. One thing is for certain – it is necessary. Business best practices are in place to help avoid innocent and costly mistakes, and to ensure your company thrives in every capacity. By implementing HR best practices early on in your company, it will create a model that is more easily scalable.
