Thursday, February 22, 2024

There are so many definitions of what exactly constitutes a small business that it would make your head spin. It all depends on several factors, of which industries and niches within industries play a major role. With that said, a sole proprietorship with no employees, although small, would hardly need an HR department. You can learn about the role of the human resource department in a company, on this website:

Realistically, a small business can bequite large by most people’s standards. For example, manufacturing is considered small with a maximum of 500 employees, but that all depends on the type of products being produced. Some manufacturing companies can have a maximum of 1,500 employees and by our standards, that is hardly what we would consider small. These are the kinds of ‘small’ businesses that truly need an HR team, inhouse or outsourced. Here’s why.

1. Recruitment

When you are operating a small business with hundreds of employees, recruitment can be a major problem. How do you go about recruiting? Gone are the days of looking through the Sunday classified in the employment section. Today’s HR consulting firms Denver and other cities around the nation rely on have marketing skills, which is a necessary component of recruitment. For this reason, an outsourced HR team would be your best bet because they have experts in literally every area of Human Resources, of which recruitment is a major factor.

2. Onboarding, Training and Development

Onboarding begins with all those necessary forms and paperwork that needs to be filed but from there the new recruits need to be introduced to the company and its best practices. Any necessary training begins there but HR will continue setting up training sessions and conferences along the way. It is their job to ensure every employee understands their specific jobs as well as advances in technology and any changes in legislation that affects their role within the company.

3. Scheduling, Payroll and Benefits

Although HR doesn’t set budgets as that’s up to the financial team, they are responsible for scheduling the days and hours each employee works. HR works directly with each department to make sure the right number of people are on the job at any given moment. Again, HR doesn’t set salaries, but they are responsible for getting all the proper tax forms filled out and then processing payroll each period. Any company benefits are probably established in finance, but HR is responsible for meeting with each employee to work with them on the benefits they would like to subscribe to.

4. Compliance

Compliance is a far-reaching duty. HR is responsible for ensuring all safety guidelines are adhered to in terms of legal regulations and company policy. Human Resources is also charged with ensuring that the company itself is compliant with all laws, up to and including Fair Labor and Anti-Discrimination laws. Therefore, HR departments in all the major corporations have one or more legal advisors on the team and specialists in each area of compliance.

HR teams have many, and widely varied, duties so it is imperative that each HR rep fully understands the tasks they are responsible for. There is no way for one or two people to be expert in everything they need to do. Perhaps the old proverb says it best. It doesn’t bode well to be a “jack of all trades and a master of none.” HR is too integral to business operations, so there is no going without a Human Resources department. The quickest, easiest and most effective solution is probably going to be outsourcing to HR specialists. They are the experts, so let them help you hire the talent you need, see to their training, and keep you compliant. In the end, they will be instrumental in growing your business and that’s exactly what you want.


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