Does Your Small Business Need an HR Department?

Three Good Reasons Why Every Small Business Needs a Human Resources Professional

As a small business owner, there is constant pressure to cut costs and eliminate unneeded overhead in order to keep sales growing. While it may be tempting to cut certain “non-critical” positions, it is important to stop and think about how the absence of those departments may impact your business. One of the most undervalued positions that are often not included in the small business structure is the presence of a Human Resources professional or department. While it may be appealing to eliminate this position and save money, here are three reasons why your business needs an HR department.

Small Businesses Need Someone who Knows Employment Law

One of the best reasons for a small business to have a Human Resources professional or department is that these individuals know everything there is to know about Employment Law and know what needs to be done in order to stay compliant with these regulations. When it comes to hiring and firing employees, one mistake could mean huge fines for a business owner and their company. Having an HR professional will help to eliminate these types of mistakes and although it may be another employee on the payroll, it will save the business from potential fines and embarrassment down the line.

Human Resources Professional can manage the Hiring or Firing Process

Bringing on new talent and letting employees who are not benefiting the company go can be a long, time consuming and confusing process. There is a lot of paperwork that needs to be filled out, filed, submitted and verified in order for these processes to run smoothly. Small business owners are short on time as it is, so having someone in the company who can handle these processes and knows about the law surrounding them is an invaluable resource. Leaving the hiring and firing process up to an HR professional means business owners can focus on more important items, like running their business.

Handling Employee Files, Employee Handbooks and Business Manuals

All good small business has a running record of employee files as well as consistent, updated handbooks and manuals. Although a business owner may initially create these items, it is almost impossible for them to keep up with changes and edits along the way. A Human Resources professional is skilled at keeping employee files organized and up to date and will be able to easily make changes and updates to all employee material, not to mention they will own sending these updates to other employees and holding them responsible for knowing these changes and acknowledging they understand them.

Having a Human Resource professional or department in a small business is very important to keeping the company on track, for more reasons than those listed here. HR professionals allow small business owners to focus on their business and also help them to avoid violating any Employment Law and manage the hiring and firing of employees with ease. While this may seem like an added expense, it actually helps to save the business money by avoiding fines and lawsuits as well as eliminating the time spent by the owner or other employees to keep files up to date and current.

Before you get to the point that you need an HR department, you may need a small business idea to create your own financial independence. Stacy O'Quinn has helped dozens of people create a legitimate home business and he would love to help you too! For more information about Stacy and his opportunity, please click here.