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Small Business Management and HR Department: Why You Need It

Having an HR department can seem unnecessary when you have a small team to manage, but it shouldn’t. Consider the HR responsibilities for a moment. There’s payroll to do; policies to plan; compliance to maintain; employee conflicts to resolve; recruiting to look after; training programs to organize and what not. All this requires time and effort. Sure, you can have your team members on rotation, who can fill up, get a task done, and sort everything out conveniently, but that leaves too many holes to ignore. Then, there are certain areas of HR where you need a qualified and skilled HR professional to take over. Overlooking these details costs small business owners a lot. According to Bloomberg, small business owners pay up more than $4.5 billion per year in IRS penalties, accrued over payroll compliance errors. Similarly, SHM reports that the average cost per hire for a business—big or small—is around $4,129. Imagine getting that hiring decision wrong (not a far fetched idea when you take into account how many candidates you’ve to go through to fill a single job opening). Some would cite the emergence of HR tools to help with HR operations and reduce the risks that come with DIY management. Point taken. However, one should not forget that to use these tools, you still need the qualified workforce on board. As Steffen Maier, co-founder of Impraise, a New York-based performance management and coaching platform, says: HR apps do a lot of good things, but they don’t replace the need to have an HR department. That time, you (and your team) spend on doing HR activities can be utilized in a better way and towards more productive tasks, if you set up an HR department at your company. Those risks that you invite by self-managing HR activities can be avoided if you opt for a full-service HR department and can save money on unnecessary expenses. Having an HR department is a need rather than a luxury for businesses today, and this holds true whether you run a major corporation or a five-person company. At HR Business Partners, we provide expert HR consultancy and management services to small businesses located in the Twin Cities Metro area. Get in touch with us today for a free initial discussion.2019-06-20 13:00:58