The Importance of HR Professionals In Small Business

[Today’s guest blog comes from Brynna Baldauf.]

Each day, small businesses are faced with obstacles impacting their workforce, production, services, and operations.

As a result, companies implement strategies to minimize these challenges—but many small businesses struggle in obtaining the resources needed to ensure their assets and human capital are protected. When a business does not have the resources to effectively address these problems, they are at a disadvantage. Limited resources can increase risks and vulnerability, which can impact operations and services.

To minimize these risks, now more than ever, small businesses are investing in professionals that are capable of fulfilling the day-to-day operations of the organization.

Why Small Businesses Need HR Professionals

HR professionals can help small businesses stay compliant!
HR professionals can help small businesses stay compliant!
The field of human resources is essential to all business operations that impact internal processes, policies, and procedures. Human resources professionals are an asset to any business as they bring organization and accountability to benefits, policies, and the employer-employee.

As a result, more small businesses are recognizing the value of hiring human resource professionals. HR professionals are able to fulfill various responsibilities throughout the organization upholding ethical standards and confidentiality.

Although there are many benefits HR pros bring, here are some areas in which they are influential in business operations:

Policy & Procedure

HR professionals assist in developing and implementing policies within an organization. Their work aids in organizing staff and aligning all operations. Policies pertaining to termination, payroll, sexual harassment, and performance evaluations are standard policies HR professional assists in developing and enforcing.

HR Law

Training in HR Law is essential to a business to ensure compliance with state and federal regulations as well as in implementing policies within the company. Human resource professionals will stay abreast of any laws impacting the business and are responsible for posting notifications regarding state and federal requirements.

Benefits Administration

HR professionals are experienced in benefits administration and work with vendors to obtain the best plans and negotiate the best rates for the company.

Recruitment & Hiring

Implementing the most effective practices to fulfill hiring needs is a significant part of the HR role. HR professionals are trained in the area of recruitment and hiring to eliminate unethical practices as outlined by the Equal Employment Opportunity Commission.

Furthermore, HR professionals are able to help identify the needs of the organization and implement a recruitment initiative to locate the best talent.

Training & Development

Depending upon the size of the business, HR professionals are an important component not only in the development of company policies but also in ensuring staff are trained and made aware of policies. This may take one meeting or several, but employees need to be made aware of what’s expected of them legally and professionally. Having clear boundaries and rules usually helps a company and its employees thrive.

Pay & Compensation

HR professionals work collaboratively with management to recruit and maintain staff based upon a structured pay and compensation schedule. They possess the knowledge to identify market trends which can assist in developing a base pay structure and total rewards program for the company. At smaller companies, this will include helping with payroll and taxes.

Personnel File Maintenance

Another essential component of an HR professional is ensuring the employee file contains all required documentation. This may include proper identification and I-9 forms.

Oftentimes, small businesses struggle in assessing the needs of the company and in implementing the most effective solutions. HR professionals work closely with owners and management to assess the needs of the company and identify the most effective strategy to address these needs. Although it is important to evaluate the cost-effectiveness of hiring an HR professional, in the long run having this resource available can save the company money, headaches and time.


About the Author:

Brynna Baldauf is currently working for a small tech start up out of Phoenix, Arizona while braving the heat and cacti. She has a degree in human resources and organizational leadership and chooses to work with those in the tech field because they constantly challenge her.

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