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Top 6 Reasons Why HR Matters For Small Businesses and Entrepreneurs

Human resources are viewed differently by various people. For people who are looking for jobs, HR or human resources is the recruiter who decides whether or not their application get accepted. For the new hires, they consider them an ally and mentor, supporting them to learn more about their position and have knowledge regarding the organization. To tenured employees, they consider HR as being accountable for their continuous development, enthusiasm, safety, and well-being. 

On the other hand, if you’re a small business owner, how do you view the HR? If you are planning to get or outsource HR support and services for your business, it’s definitely a great idea. It will guarantee that your business is able to employ and retain top talent while meeting the standards and requirements of the law. 

If you still haven’t decided to have HR working by your side, here are some great reasons why you should: 

1. They Are In-Charge of Administrative Stuff

Your small business will eventually need to hire some employees, and you have the responsibility to manage them as an employer. For instance, you need to report new hires to your state and would be required to categorize employees properly whether they’re exempt or nonexempt.  You also need to process the taxes of their payroll, offering W-2s to employees during the end of the year. If you don’t know any of these things, HR professionals can help you since they have an understanding of every why and how of these requirements. 

2. They maintain all documentation and handbook 

people sitting near table with laptop computer

The HR is known to be bookkeepers of every workforce, keeping all the paperwork that assures your business is obeying labour laws and secured in the occurrence of a dispute. The documentation includes the medical file, employee file, and I-9 form if you’re from the US. 

Apart from these documents and forms, every business must have an employee handbook. It’s a tool that lets informs employees what is expected of them while they work for your company and set protocols for ways to handle issues and problems that may occur in the workplace. If you don’t have a handbook yet, here are the things that it can include: 

  • Values, mission, and objectives of the company 
  • Code of conduct 
  • Policy for anti-discrimination 
  • Security and safety policies 
  • Job descriptions 
  • Chart of hierarchy 
  • Compensation and benefits 
  • Leave credits (scheduling, sick, vacation time) 
  • Hiring and recruitment policy 
  • Discipline policy 

Some of these documents build the foundation of your business from a workforce outlook and provide HR with the authority to perform its duty. You can also update the handbook as long as it reflects the changes in your organization if they arise. If you want to start doing your employee handbook, the HR can do that for you and give you several templates. 

3. They can find and recruit the best talents 

Sourcing top talents is what HR is expert at and they are your front line to recruiting. They have the experience your business needs since they use job boards and recruiting software for a faster and more efficient hiring process. They are also aware of understanding what information they should and shouldn’t collect on a job application to avoid any possible lawsuits. Most of all, they have an idea on what questions to ask a candidate to determine if they’re either a talker or a doer. 

4. They know how to negotiate job offers 

man writing on paper

Human resources are so crucial to every business since they can help you land on the right balance of pay and benefits to attract the right balance of salary and benefits to joining your organization. They are well-informed about what a certain job should pay based on the talents, experience, skills, and education, alongside the job duties. They also understand what the regional pay ranges and shift differentials.

This is why having HR reps by your side who can create job offers and inform you on the going rates will help you prevent overpaying workers or having a position offer declined and as well as assuring the salary and benefits meet the needs of the worker. You’ll be able to save more useful money and lessen the time that it takes to fill an urgent position. 

5. They can manage and track employee productivity

You can be honest with the idea that you don’t really hire employees to make them happy. They are there to do their work. However, it’s also obvious to note that your employees will do a better job if they’re satisfied and happy. This is why HR management are trained to provide plenty of levers to track and boost your employees’ productivity. It’s also important to remember that it’s not only about the concern of compensation, but there are also many things that HR knows to make your employees happy with their jobs. 

6. They make sure that you comply with the labour law

two people shaking hands

A lot of small businesses don’t acknowledge the importance of human resources management until they face a fine, lawsuit, penalty, or an audit. HR professionals are well-informed with labour laws because that’s their job in the first place. There are places and countries that have stricter laws than others, so make sure that you comply accordingly. 

This is one of the reasons why having an HR to work with you is important. They are experts who are skilled in helping you abide by these laws, especially with changing regulations. 

Need more information and tips about your business, check out these page for more!

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