Why Human Resources Is Important for Small Businesses

human resources policies for small business

Although every organization has its own priorities and needs, effective HR policies are key to guiding employee behavior and outcomes. Before setting up your HR policies, it can help to review some of the most important ones and how they can benefit your business. Every organization should establish a clear set of policies and procedures for their employees to follow. These should be written in accordance with federal, state, and local guidelines and also accommodate your business’s specific needs. When writing your policies, be explicit about what is expected and what will not be tolerated.

  • This will also help answer many basic employee questions that would otherwise take up valuable HR department time.
  • For instance, if you have a lab, include what type of safety goggles need to be worn for compliance reasons, or what attire teachers can wear on sports day.
  • You need to address a myriad of legal issues including anti-harassment policies, anti-discrimination policies, rules about vacations, and more.
  • Your policies should be kept in your employee handbook and stored for easy access for employees, managers and your HR team.
  • Manage labor costs and compliance with easy time & attendance tools.

Prevent this from happening to your business by taking the time to recognize employee achievements. Whatever you do, be sure to document performance-related concerns effectively, in the event further disciplinary action or termination becomes necessary. 7 Recruitment Marketing Automation Tools to Save your Time Trying to simplify and streamline your hiring process?


Small business owners need to recognize that changes in HR policy have the potential to impact, in one way or another, every person in the company, including the owner. Proposed changes should be examined carefully and in consultation with others in the organization who may recognize potential pitfalls that other managers, or the business owner herself, may have failed to detect. Once a change in policy is made, it should be disseminated widely and effectively so that everyone within the business is working from the same human resource policy at all times. Succession planning, HR analytics and data, benefits and compensation, development and learning, human resources information systems, performance management and selection and recruitment.

  • Informing and educating employees through an up-to-date sexual harassment policy is critical, and some regions may even require that your organization have one in place.
  • Another advantage to creating HR policies is the time it can save.
  • Focusing on the small business human resource can be beneficial for any business.
  • It makes more sense to have some solid policies in place that can only be handled by a trained department that handles any of the employment processes.

However, not all jobs and employees are well-suited for remote work, so it is important to clarify your organization’s position on remote work itself. HR policies human resources policies for small business ensure every employee of an organization is looked after; their needs are respected, and proper benefits are made available to them for their work.

Professional Employer Organization (PEO)

Strategies aimed at increasing employee satisfaction and engagement, as well as training and development, are good ways to improve employee retention. As a small business owner or manager, you’re used to wearing many hats.

After more than 1 million Americans died from COVID, most companies still give just a few days of bereavement leave for ‘core’ family members – Fortune

After more than 1 million Americans died from COVID, most companies still give just a few days of bereavement leave for ‘core’ family members.

Posted: Wed, 24 Aug 2022 07:00:00 GMT [source]

Training and development are also a major responsibility, as well as the overall safety and wellness of employees and the administration and management of benefits and employee perks. With Eddy’s all-in-one HR Suite you can hire, onboard, manage, and pay employees with one easy-to-use platform. Cost of employee turnover can be crippling for a small business, so it’s important to create an https://adprun.net/ environment that encourages employees to stay. Once you know you need to hire and you’ve created a job description, it’s time to get the word out. You’ll want to distribute your job post broadly so as to attract a wide pool of qualified candidates. Consider posting on job boards such as Indeed or Glassdoor, as well as sharing your job post on social media sites like Facebook and LinkedIn.

Developing an HR Department

Your employees deserve to work in a place where they feel secure, and where they can raise issues or grievances that will be dealt with appropriately. This is a kind of insurance that helps protect both businesses and employees from financial loss if an employee is injured on the job.

  • Established HR processes help you make better and faster decisions, ensure that employee actions are best aligned with the strategy and goals of the company, and ensure that your business is staffed adequately.
  • Creating an environment where people are happy to work is extremely important.
  • Non-discrimination laws are governed by federal, state and local provisions, so review your applicable law and account for all appropriate protections.
  • A dedicated HR team has the time and knowledge to track developments, maintain the necessary records, and manage audits.
  • Having a clear set of goals and priorities in place helps your business function properly.

This blog does not provide legal, financial, accounting, or tax advice. This blog provides practical information on the subject matter. The content on this blog is “as is” and carries no warranties. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog. To stay on top of all the news impacting your small business, go here for all of our latest small business news and updates. From creation to execution, here are five steps for startups to develop HR policies. Entrepreneurs and industry leaders share their best advice on how to take your company to the next level.

Train your employees on HR compliance.

This is key to ensuring your company doesn’t face litigation. Once an investigation is complete and you’ve determined that an employee has violated one of your policies, take the appropriate remedial action as outlined in your employee handbook. Regardless of how big or small your organization is, HR compliance can be a big undertaking and should be managed by an experienced professional, either internally or externally. While delegating HR functions takes them off your daily to-do list, you will still need to oversee the HR team.

How small business manage human resources?

  1. Establish an employee handbook.
  2. Be prepared to help new employees hit the ground running.
  3. Stay on top of local, state and federal regulations.
  4. Hire the best talent.
  5. Bring in professional partners when you need them.

A good onboarding process sets your employees up for success from day one. Make sure you are ready for them on their first day, and use that time to establish expectations and introduce objectives. Check in regularly with your employees during their first several months and maintain open communication with new hires.

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