Why Small Businesses Still Need Human Resources

Why Small Businesses Still Need Human Resources

Human Resources should never be overlooked, no matter what type of business you’re running or what industry you’re involved in, and even small to medium sized businesses should have a HR department, or outsourced HR assistance.

The latter is an affordable option that suits many smaller businesses, as it avoids hiring inhouse employees and the costs associated with them.

Below are just some of the pitfalls of operating without an HR department: When management fails, problems can occur If your company relies on its management team to establish workplace norms, oversee hiring and promotions and promote ethical behavior, should that management team fail for any reason, the entire company can suffer in the absence of a formal HR department.

You may face many challenges without HR Sexual harassment claims, compensation concerns and improper performance reviews are just some of the many challenges your business could face if it doesn’t invest in a proper HR department. Having a robust HR department, even one that is outsourced, will help make sure your business doesn’t fall prey to all manner of legal liability issues.

Without HR, decisions and processes are longwinded and inconvenient Hiring is an important part of any business, but without a HR function to help you take care of it properly, not only can the process take a lot longer, but it may result in bad hires that could cost your company dearly.

What management will need to know, in the absence of HR If you don’t invest in HR and have 15 to 25 employees (or more), below are all of the things your management team (or you!) must learn and be aware of:

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Outside help may have to be hired – for sensitive issues such as allegations of abuse, you won’t be able to handle this efficiently without an HR representative; you’ll need to hire an outside expert, which won’t come cheap.

You’ll need to know the law – with workplace legislation varying from state to state, and rules changing frequently, you’ll need to stay abreast of the law. Hiring an expert to advise you on this can be costly.

Managers will have to be trained – it can be time consuming to train managers to actually manage people, resolve conflicts or recruit new workers, but you’ll need to do this if you don’t have a HR function.

Smaller to medium sized businesses often struggle more without a HR capacity, since bad decisions and mistakes can cost them more than it might for a larger company. Whether you hire inhouse (which may not be feasible due to budget restrictions) or outsource the function to a payroll provider, neglecting HR could have serious repercussions for your business.

Apollo Payroll is dedicated to delivering expert advice, responsive service, and highly accurate payroll processing and reporting to ensure the success and growth of the business that we serve. Our services include comprehensive payroll services in Homestead and other cities in Miami-Dade County, employee background check and group health insurance in Miami & Coral Gables