10 HR Tips for Small Business

Just like larger companies, small businesses face unique workforce challenges. Unlike larger companies however, small businesses are often not well equipped to deal with those challenges. Blunders in HR can hurt profits and prevent growth, which could be detrimental to any business – most especially smaller businesses. As an expert in human resources and workforce solutions, we offer these 10 HR tips for small business:

Create an efficient interview and hiring process

Job seekers often have numerous job offers to choose from and won’t wait around for a hiring decision. Large companies tend to have a slow and complicated interview and hiring process, so streamlining yours allows you to discover and snag that top talent first.

Onboard new employees immediately and thoroughly

With current quit rates setting records, the onboarding process is extremely important to retaining employees. Taking the time now to onboard new hires the right way will save you headaches and hassle down the road – not to mention the costs of having to re-recruit, re-hire, and re-train.

Create and update your employee handbook

An employee handbook explains your company’s policies and procedures, and clearly communicates expectations to employees. The included policies should be easy to understand, fair, and consistent. In the event of a dispute, having an employee handbook helps protect your business.

Provide training and development opportunities

Providing ongoing training is a strategic investment in your biggest asset: your employees. Not only do a majority of employees want continual development, but employers can ensure employees are performing at peak levels by providing new hires with the tools they need to hit the ground running and current employees with the opportunity to grow.

Establish performance evaluation and documentation procedures

Small business owners do themselves a favor by creating a list of job expectations and establishing a performance evaluation process for each position in their company. Documenting these evaluations appropriately not only ensures fair treatment of employees and their compensation, but also protects your business in the event of disciplinary action and/or termination.

Ensure all employees are classified correctly

Many small businesses classify their employees differently than large businesses do in order to save on associated employment costs. Misclassifying employees however, can cost considerably more in the long-term, making it imperative to classify employees correctly from the beginning.

Keep all HR files organized and confidential

Keeping employee files organized and confidential is so important, many businesses keep two files for each employee: a personnel file and a confidential file.

Motivate employees with feedback and rewards

Turning a profit and making ends meet is a top priority for busy small business owners, but that doesn’t mean neglecting to provide timely feedback and well-deserved rewards and recognition to employees. Providing immediate feedback helps motivate employees and will always benefit your business. Establishing performance goals and rewarding those who meet them is another great way to motivate and retain employees.

Keep payroll up-to-date and organized

Due to disorganization, many small businesses struggle to stay up-to-date with payroll. Remain organized by utilizing payroll systems and be sure to hand out paychecks on a consistent and timely basis. Many small businesses elect to skip the hassle of payroll all together and outsource those services instead.

Know, understand and comply with HR laws and regulations

HR and employment laws and regulations are constantly evolving and consistently complicated. Knowing and understanding these laws it vital to the long-term success of any business, but especially small business, due to the high costs associated with non-compliance.

Owning and managing a small business often means having to take on multiple roles and juggle various tasks, increasing the chances of making a costly mistake. It’s easy to ignore the human resource side of business when things are running smoothly. When things aren’t running smoothly however, you’ll wish you had taken the time to appropriately address those workforce challenges.