Do Small Businesses Need Human Resources?

Do Small Businesses Need Human Resources

In large companies, Human Resources is an integral part of the day-to-day operations and companies with exceptional HR departments thrive under their involvement and guidance. With so many employees, a department dedicated to managing them makes complete sense. A small business, on the other hand, may not have enough HR responsibilities to justify a full-time role to take care of them.

For a small business, Human Resources functions most often fall to the owner. As a business grows, these responsibilities take up more and more time. At this point, delegating is a way for a business owner to get back hours of time that could be spent on high-level decision-making for the future of the business. How many responsibilities are handed over to HR may vary, but they often include:

  • Maintaining Compliance with Employment Law
  • Hiring and Retaining New Employees
  • Organizing Performance Reviews
  • Overseeing Compensation and Benefits
  • Fostering a Positive Work Environment
  • Creating and Updating Employee Handbooks

How HR Grows:

These are all essential functions in maintaining a positive work environment that is primed for growth.

Experts recommend that once a company reaches 10 employees, an HR generalist would have enough work to justify a full-time position. It’s up to the business owner to decide when they feel the HR responsibilities have taken up too much of their efforts and to bring on some help. This also becomes a cost-saving measure since seasoned HR specialists will bring efficiency and experience to their role.

What HR Can Become:

While many people measure Human Resources by the number of forms they complete, a good HR department has an intangible quality that can’t be calculated. They function as the heart of the company and are involved in almost every area. Creating a positive work environment is not only for the success of the business but for the success of its employees as well.

HR is about listening to concerns for the business and its processes and helping employees feel supported in their efforts. Employees now have a designated person or department to address concerns and ideas for the company without bringing everything directly to the owner.

Where to Start:

The need for a designated Human Resources employee will become greater as the business owner feels their responsibilities outweigh the number of hours in a day. Working with a company like HR Worx which provides HR functions for small businesses is a great first step to creating an environment that supports employees and gives the owner back many hours in their day. The role can be tailored to fit certain HR needs and it can grow with the business in time.

Learn how HR Worx can provide essential functions for your business and foster an environment for your employees and your business to grow. Reach out today!