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Why HR Matters to Small Business Success

The people in your small business are the core of the operation. They will help your small business reach its goals, provided you show them the appreciation they deserve in return. HR is vital to small business success, and here’s why.

For Recruiting and Training

Getting the right people within your team isn’t easy but it is a lot more effective with HR professionals who understand how to recruit talent. Ideally, the employee recruiter looks for someone who has a high level of commitment to their career.

When they have a history of staying in a job for a long time rather than bouncing job to job, you’re more likely to get a loyal team member. Also, look for someone who fits within the workplace culture and wants to learn.

Once hiring a new worker, a talented HR department will welcome, orient, and immerse them into your small business environment. When this part of the process is done well, the employee feels engaged. Thus, they are more likely to stay on with your company than look elsewhere.

For the Budget

An experienced HR team understands how to be creative about carrying out their job functions within a limited budget. For a small business, consider hiring a third-party organization to handle HR responsibilities as opposed to bringing on a new employee who you then must train, introduce into your workplace culture, and pay benefits, which are additional expenses.

The HR support of can boost employee morale, as well as improve both hiring and training practices to make your team the best possible. They also save you significant time and money by reducing human resources tasks in-house, which frees up time for key tasks of the organization, such as boosting sales.

For Reputation Management

While hiring and onboarding are tasks that most people identify with HR departments, the experts are also crucial for reputation management. A human resources pro is the face of the organization and must act on behalf of it.

A solid human resources team can create and maintain a strong reputation for a small business. For example, they can encourage employees to share uplifting experiences about the company on their social media profiles.

Another strategy is to post the business mission statement and ensure each employee has a copy of it. The goal here is to build a united organization with the same vision. The feeling of solidarity can make for an unstoppable business.

For Legal Knowledge

Lastly, HR specialists understand the latest laws as they apply to small businesses. Rather than spending your time researching legal matters and rules relating to human resources that can change regularly, rely on the experts to provide accurate and up-to-date info.

Instead, put your time toward core functions of the biz, such as marketing and growth strategies. You’ll also have peace of mind that you’re not breaking any labour laws without realizing it, which can be a costly mistake.

For instance, you might mismanage break times under the law. Relying on an HR professional to help you create fair break policies that comply with legal regulations can keep you out of court and ensure your employees get the treatment they deserve.

For Better Company Culture

The personality of your small business, also known as its company culture, includes its company mission, goals, ethics, and values. Positive company culture is more than just nice to have; it’s essential to retaining staff.

If employees are not happy with the work they do, then they are less likely to stay with your small business. A high employee turnover rate is not only bad for reputation but also is expensive as you continually hire and train new people.

Furthermore, company culture affects employee productivity. It affects engagement with those who feel connected and excited about their work being more likely to be productive. Also, keep an eye on how workers get along as part of employee management; they may want to leave to get away from a difficult co-worker.

Taking time to improve productivity, which an HR team can help to do, is integral for small business success. The higher the productivity, the greater the business profits.

The Takeaway

A significant mistake any small business owner can make is to neglect their HR department. The human resources department is essential for recruiting and keeping the right talent for your organization.

Another important HR function is to ensure your policies comply with legal regulations to avoid being held liable for something you didn’t realize wasn’t right. Outsourcing HR functions can also save your small business money and time, as well as improving its reputation.

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