Small businesses oftentimes don’t have the capacity to have an entire department dedicated to Human Resources (HR). Instead, HR is managed by business owners who are simultaneously keeping up with sales, accounting, marketing and the day-to-day tasks essential to running their business.
HR is a critical component of business management.
HR is so much more than just benefits administration. It’s more than dealing with conflicts as they arise, or making sure your employees make competitive wages.
In fact, many agree that HR needs to be considered in the overall strategy and direction of a business. James Kosur, C-suite editor at Business Insider, suggests HR is no longer just about benefits and administration. It is now an extension of a business strategy and has become a business partner that can make or break a company – read the full article HERE. Approaching goals and strategies with HR in mind will help business owners effectively recruit and hire employees with the skills and knowledge needed for success.
It’s not uncommon to see business owners become overwhelmed with the prospect of HR. There’s a lot to know, but oftentimes it’s what you don’t know that can really hurt you.
HR doesn’t have to be a daunting. It is a vital aspect of running a business that owners need to consider. As soon as you have employees – and are no longer a “solopreneur” – you need to have HR on your radar.
A small business probably doesn’t have a HR department, let alone the ability to dedicate one full person to an HR role. Many entrepreneurs and small business owners need assistance with the “nuts and bolts” piece of HR, and there are great resources available.
“Outsourcing” doesn’t have to mean a big expense, but rather means bringing in outside professionals to help in specific areas of your business. You might hire a marketing firm for a particular campaign or a sales strategy, so why not hire an HR consultant to help you better understand which policies and practices are important to implement or refine?
An outside HR professional can provide perspective and assistance with, what we’ve found to be, the top 5 HR pain points:
- Attracting and retaining talent
- Managing and training employees
- Performance reviews and assessments
- Understanding employment laws
- Documenting important employee events – hiring and firing
More than anything, it’s important to remember that HR is about being fair in the way you run your business. It’s critical to be fair in your hiring practices, the training you make available, the way you treat employees and the way you document successes, as well as challenges and conflicts.
Download the tip sheet for our break down on our top 5 HR pain points – your business might just thank you later.