When creating an HR department for small businesses, there is much more to consider than creating a positive work environment for your employees. A positive work environment is important, however, there are many other aspects that are more complex when it comes to HR support.
Why is HR Important for My Business?
For big and small businesses alike, an HR department recruits talented employees for your business. Additionally, the HR department helps form the culture of your business. Some common tasks performed by a small business’s HR team include employee onboarding, updating company policies, and performing disciplinary actions. The success of a company’s HR team plays a large role in the overall success of the business.
To help raise awareness about other areas of focus in HR, let’s take a look at some of the HR tips for small businesses.
7 HR Tips for Small Businesses
- Understand Employee Files and Documentation Requirements: What kind of information is important to keep in an employee file, and what should be kept confidential? Proper documentation of employees is important for any small business. To ensure that all documents are correctly filed, your HR team should regularly visit the IRS’s website to stay up to date with all employee information.
- Develop an Employee Handbook: An employee handbook can serve as a safeguard for your business’s policies. In the manual, outline your employee expectations and your company’s operating procedures. Require every employee to sign it at the time of hire and once again each year following. It’s also good HR practice to review and revise your handbook at least once a year.
- Hire & Retain Quality Talent: Hiring and maintaining good employees can be a difficult task. As an HR department for a small business, you should focus on what matters most to your employees and potential candidates, such as compensation and opportunities to move up. Additionally, work with your team to create a positive and supportive culture, where your employees can grow and advance their careers.
- Create a Competitive Compensation Plan: Employee compensation does not only refer to a person’s salary. Increasingly, small business employees look for additional benefits in their compensation packages, including paid time off, 401k matching, and much more. No two employees are the same, this should be reflected in their benefits package. A strong package will add value to your employees’ overall compensation.
- Generate Accuracy With Your Payroll: Failing to maintain timely and accurate payroll is one of the quickest ways to lose good employees. As a small business HR team, it is important to maintain timely and accurate results when running employee payroll. To avoid unwanted errors, it may be beneficial to set a procedure regarding how your business’s payroll is expected to be run. Another additional feature includes ensuring your business is compliant with the rules around correctly classifying your employees—such as exempt or nonexempt—and paying them based on their appropriate classifications.
- Monitor Changes in Employment Laws: HR laws are changing constantly, and if you don’t keep up with every single one, it could cost you. Staying on top of the ever-changing climate can help protect you and your business, and even though it is a time-consuming task, it is absolutely necessary.
- Build a Network: Some of the best learning opportunities can come from others within your industry. Consider joining a professional organization or chamber of commerce to network with other small business owners. When you create a community, you can share your experiences and learn from each other’s successes and mistakes.
What Should I Look for in an HR Team?
When starting a small business, an HR department can often be overlooked. An HR department is essential to the development and success of the startup. When looking to hire HR members to your team, there are some key things to look for.
- Ensure that they have experience in your industry
- Self-Motivated
- Trust-Worthiness
- Elevated Social Skills
Final Thoughts
For many startups, the value of an HR department can be difficult to see. Starting a business can be hard, but maintaining it can be even harder. Recognizing the necessary steps an HR should take to ensure success can go a long way in helping the business grow.
Limitless HR Support in Gilbert, Arizona.
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