As a small business owner, your time is—literally—money. As the creator of your small business, you have likely felt that there’s not enough of you to go around to tackle everything that needs to be done in order to keep your business running, let alone growing. Stretched thin with the minutiae of running your business – including administrative tasks like ordering supplies, managing the books, and handling HR – you may be asking how you can find time to do more of what you love. Read on to discover some of the pitfalls of DIYing your company’s human resources as well as some unexpected benefits of relying on company you can trust to handle your HR.
…is that you’re a master of none. It’s a time-tested saying, but when it comes to managing your own small business, nothing is more accurate. And given how small businesses grow from the spark of an idea, it makes perfect sense that a business owner would wind up having a hand in all the various aspects of running their company. When small business owners first start out, they’re often a one man – or woman! – show. From the spark of a business idea, they’ve developed a plan, and secured a corner in their industry where they can flourish and grow. But as their business grows, so too grow the tasks and responsibilities of running their business. Responsibilities which are often completely unrelated to the idea that sparked life into their small business in the first place, including handling supplies, bookkeeping, and managing HR.
From office supplies to items needed to create the goods or supply the services your small business provides, somebody needs to be in charge of tracking what you have and purchasing more as needed to keep your business running smoothly. Very often, this is precisely the reason an office manager position is created within a company—to offload the responsibility of tracking and stocking the supplies needed to keep the business running.
Accounts payable (bills) and accounts receivable (invoicing) are the backbone of the bookkeeping of any small business. Paying bills and getting paid are two of the most important components of keeping a company in business. But beyond that, tracking profits and losses so that your company is paying appropriate taxes is important for long-term growth.
As a company grows, the demands on the business owner gradually (sometimes drastically) expand, requiring the company to bring on new team members who can help shoulder the weight of the business. Whether these people are directly involved in providing the goods or services the company provides or are support staff who help facilitate business growth (like those who manage supplies or handle the finances), these people will need to be trained in the proper business practices of your small business. You will also need to manage their compensation and benefits packages and handle sensitive HR issues on their behalf as they arise.
Unless you’re in the business of Human Resources (like we are), most business owners tend to “learn as they go” when it comes to handling HR, often relying on Google to answer some of the weightier questions. Unfortunately, this can create some significant problems as your company grows.
As companies begin to grow, one of the biggest things they need to be conscious of is staying compliant with local, state, and federal employment laws. Are you required to provide health insurance, disability, workers comp? The answers to these questions can be more complicated than what a simple Google search may lead you to believe. Remaining compliant with employment laws requires an in-depth knowledge and understanding of the ever-changing regulations. The consequences for violating these laws can be very expensive, not to mention extremely damaging to your company’s reputation. People who specialize in HR are familiar with employment laws—in fact, part of their job is keeping up with changes in these laws—and are better equipped to know which laws apply and what you need to do to remain compliant.
Small business owners who try to tackle HR on their own may find themselves with some pretty difficult questions that Google just can’t answer. And when this happens, there’s no trusted source for them to turn to who can offer the best answer and best advice for navigating their HR questions. What’s even worse? Even after spending significant time searching, you may not even find the answer you’re looking for. Without a trusted advisor, it may be difficult to know for sure, until you’re dealing with the backlash of handling an HR situation incorrectly.
The time spent trying to answer HR questions that arise, whatever they may be, is time the business owner is taking away from providing the good or service their company provides. In short, not only does it take time (and money) to try to find the answers to these various HR questions, but it costs the business owner literal money by it reduces the company’s overall productivity and production in the meantime. The more time a small business owner spends trying to figure out HR, the less time they have to create or provide the goods and services of their company, which in turn limits the company’s ability to thrive and grow.
Outsourcing HR with Clarity HR gives your business access to experienced HR professionals. Beginning with a deep dive HR audit, Clarity HR assess your HR practices and organizational overview to understand your HR compliance needs and develop objectives for managing your human capital. Your Clarity HR team will work with you to determine the right blend of onsite and outsourced resources your small business will need. We’re here to be your partner and shoulder the burden of managing your human capital, freeing up time in your day to do more of the things you love! Contact us today for a consultation!
