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Do small businesses need HR?

Published On:
January 16, 2020

Let’s be honest – you’re probably asking yourself do I really need to worry about HR? Human Resources in my company are not that important because we are a small firm. You may not even be sure what Human Resources even does besides hire and fire, but HR or often referred to as Human Capital Management is so much more.

Human Resources encompass a wide range of essential activities, touching on compliance, long-term strategic planning and every part of the employee lifecycle. As a small business human capital management is essential to the life of your organization. The greatest expense and risk we often take on as a small business is extending our staff beyond ourselves.

Investing in Human Resources is essential for the success and growth of your business.

Human Resources management typically includes the following core responsibilities:

  • Recruitment and on-boarding/training
  • Retention and culture
  • Employee development
  • Compensation, payroll, and benefits management
  • Internal communications
  • Labor relations and compliance
  • Related record-keeping and documentation
  • Management coaching

The area of compliance itself can be a complicated category to navigate on your own without extensive knowledge of the landscape. Anti-discrimination laws, the FLSA, FMLA, social security policies, OSHA, and more are all essential areas of compliance that HR services can and should support.

In addition, it’s important to remember that company culture and various internal policies all have a significant, combined impact on employee retention and engagement. For growing businesses and startups if can be very easy to lose sight of the bigger picture and risk derailing your team. HR professionals are key component to help with sustainable growth, team buy-in, and a big picture recruiting and retention strategy to keep your team engaged and meeting growth expectations for your business.

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