How To Utilize HR for Your Small Business

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Depending on the type and size of your small business, human resources will mean different things to you. Human resources serve as a recruiter for individuals who are looking for jobs. Individuals who have recently been hired can rely on HR for coaching and training. Those who have been on the job for some time can count on Human Resources for continued training and make the workplace safe while establishing and maintaining workplace morale. As a small business owner, you should take advantage of HR to ensure you’re compliant with legal regulations pertaining to your company.

Here are some of the ways you can utilize HR for your small business.

Learning About HR

It’s important to know exactly what human resources entail. According to the Small Business Administration (SBA), human resources consists of the individuals who work for an organization and the department of the company that manages these employees. This means that as a small business owner, you should employ an HR department that takes care of tasks like recruiting and hiring, payroll, employee retention, benefits, training, and creating a healthy and safe environment for your team members to work each day. The HR department needs to work on all these tasks while keeping in mind that is best for employees and what serves your business from a financial and reputation perspective.

Know Why HR Is Necessary for Your Business

If your HR department is doing its job well, you’ll see consistency and improvement in employee loyalty and performance. This will help your business reach its goals and ensure that you have a positive reputation in your industry. Statistics indicate that businesses that invest in professional and hard-working candidates boost the qualities of their hires by 70%. Research also shows that 75% of employees would stay at their jobs longer if they’re working for a company that not only listens to but addresses their concerns. Unfortunately, it’s also true that employees who are disengaged at work are two times more likely to look for new jobs. These are just some of the reasons why human resources is a necessity for your small business.

HR Tasks

The human resources department is responsible for documentation. This means your HR professionals maintain all paperwork pertaining to labor laws in your state. This protects you if you’re ever in a dispute with a former or current employee. It may be necessary for you to use small business HR outsourcing depending on how many HR professionals you have on staff.

The HR team also keeps up with I-9 forms for all employees to ensure that all team members are eligible to work in the United States. Human resources also keep up with all medical files for employees so you can stay up to date with the health and disability status of your team since this can determine their work performance. You should also rely on your HR department to keep track of employee files, which includes an employee’s resume, performance reviews, payroll details, verifications from training courses, and W-4 forms.

Make sure that your human resources team has copies of your small business’ code of conduct, detailed job descriptions, safety and security procedures, and policies dictating your company’s stance on discrimination.

All of these documents are the foundation of your company’s workforce. It’s also important to update your employee handbook every few years. If you need assistance writing your handbook to make sure it accurately reflects your company’s mission, you can get a few templates from the Society for Human Resources Management.

Small Business HR and Compliance

It’s crucial to note that HR documentation is directly related to compliance. There are several labor laws that regulations pertaining to the workplace. Whether you’re taking care of many of the HR tasks yourself or you have a team, you should know about anti-discrimination law. These laws include the Americans with Disabilities Act, the Age Discrimination in Employment Act, and Title VII.

You should also be familiar with an hour and wage laws. Make sure you learn about the Fair Labor Standards Act and any state-specific laws so you are paying your employees fairly. There are also laws that permit team members to take leave from work. Know your state laws pertaining to this, and become familiar with the Family and Medical Leave Act. You should also familiarize yourself with the Immigration and Nationality Act and related regulations, as well as the benefits you are required to provide your employees.

These are just a few of the reasons that HR is necessary for your business, as well as some of the ways you can properly utilize HR. A strong human resources department can help you build your small business and keep your employees happy, which can move your organization in a positive direction over time.