Managing the HR department in a small business is a crucial part of your company’s success. The HR department and each task it’s responsible for serve as the backbone for a diverse and successful workplace. Payroll, benefits, disciplinary action, and more are handled by HR, so if you’re struggling to get things under control, this article is for you. Here, we’ll discuss seven important tips for managing human resources in a small business.
1. Choose Well-Qualified Staff
If the HR department is the backbone of your business, the people who work it are the vertebrae. Choosing highly-qualified staff is integral to the HR department’s success in the business. You’ll want candidates who know what they’re doing, and who can interact with other staff members in a positive way. An untrained HR staff can make a mess of things like compliance and benefits, and you don’t want those mistakes on your hands.
Choosing the right staff starts with knowing what you need from them. Obviously, credentials are important, but your HR staff should also share similar values with your business and appreciate the goals you have as an organization. You can use sites like Indeed to find great qualified candidates for your HR department to ensure you’re getting only the best of the best.
2. Use a PEO Service
PEO services have gained some serious notoriety in the last few years, making the HR department for small businesses more efficient and effective at its job. Outsourcing your HR can not only save your company money, but also keep you in compliance with the many laws and regulations that affect small businesses on the state, federal, and local levels. If you’re on the west coast and looking for a PEO, Retire At 21 has a list of the best PEO companies in California.
With a billion-dollar profit margin behind it, hundreds of thousands of happy customers, and a growing number of organizations providing new services, the PEO industry is effectively changing the way small businesses operate when it comes to things like HR and payroll. Sign up today and start taking your business to the next level of compliance and efficiency.
3. Embrace Diversity
Now more than ever, workplaces are focusing on something that hasn’t been of much importance in the past: diversity. The business world has long been the territory of the select few, and diversity was hardly a blip on the radar of the biggest corporations. As the world grows in social awareness, so too does the demand for diversity in the workplace.
Women, minorities, and others are more welcome than ever among modern businesses, and this makes for an impressive and versatile workforce. Modern businesses should absolutely embrace diversity as a common practice when hiring new candidates; not only is it expected nowadays, but it’s a good practice to get in the habit of. Why turn someone down because of race or sex? Those old ideas are a black stain on the past that should be wiped clean. Did we mention this kind of discrimination is also illegal?
4. Benefits and Payroll Should be Top Priorities
Benefits offer employees an awesome incentive to stay with your business and perform at their best. In fact, modern workers look at benefits as one of the main factors in their decision to sign on with a company or not. Even if you only offer health coverage or an employer-matched retirement vehicle, you’re still putting yourself ahead of a company that offers neither.
5. Focus on a Strong Work Culture
A strong and supportive work culture makes the business a better place to work for everyone and can make HR tasks that much simpler. Having a policy of openness and honesty with your employees will not only help earn their respect but will make solving problems that much simpler when they arise.
Building a strong work culture starts with uniting everyone under a set of company values that they can agree with. This provides direction and acts as a rallying point for when things get tough or seemingly unsolvable problems come about.
6. Don’t Forget About Compliance
Compliance issues plague many small businesses across the country. Local and state laws can differ from region to region, and federal regulations are numerous and often confusing. Ensuring your HR department is focused on compliance will help you avoid penalties, fees, and even legal action in the event of a serious accident or problem with your taxes.
7. Don’t Neglect Your HR Department
Many small businesses lack the resources or the time to properly manage and maintain the HR department, but the fact is, without it, your business will fail. HR handles everything involving employee payment, training, discipline, compliance, risk management and safety, and more. Don’t neglect your HR department. Take the time to invest the necessary time and money into it, or else outsource it to ensure you’re giving your company the best chance at success.