Answering this question is difficult.
However, lets highlight where HR can be is a key enabler for your business. This will include talent, culture and diversity, performance management, compensation and benefits, workplace safety, data analytics and often overlooked, the employee journey within your company.
Lets look at some of these key areas that HR can bring:
- Employer branding.
This involves the reputation of the employer as a place to work. Although there are similarities, the employer brand is different from the consumer brand.
- Recruitment & selection.
Recruitment & selection is about hiring the right people for the job. Different recruitment methods can be used, including (un)structured interviews, IQ tests, and reference checks. Based on the findings in this process, the best candidate for the job is selected.
Bringing people up to speed quickly is a key part of people management.
- Performance management.
People are evaluated and coached on their skills so that they perform optimally in their jobs.
- Learning & development.
New skills are learned, and existing skills are honed to do the job better.
- Compensation & benefits.
Compensation and benefits are (for a big part) the incentives for people’s work. Fair compensation and relevant benefits increase motivation and productivity.
- Workplace safety & culture.
Creating a culture that fits the work, leads to better safety practices, better performance, and higher engagement. This is another key role for HR.
As a small or medium sized business, you might be tempted to cut costs and choose not to hire an HR person. After all, resources and costs are tight. And you know what, your managers can probably hire people, or terminate and discipline their employees without assistance from HR – especially if you only have a small team. Right?
Well, not exactly. There’s a lot more to human resources than hiring and firing. There’s benefits, pay equity, payroll, benefits, branding, performance reviews and much more. And you have to make sure you’re doing all of that in compliance within provincial and federal laws.
So – does your business really need HR? Absolutely! Here are a few reasons why – and a few ways you can implement it without breaking the bank.
Hiring and firing
Hiring a new employee can take a lot of time – time that, as a small or medium sized business owner, you don’t have. If you have positions that needs to be filled (and growing companies often do), you need someone who can dedicate their time to hiring and everything that it entails. That means recruiting, going through resumes, screening applications, setting up interviews, interviewing, selecting candidates, background checks and more. Hiring new employees is incredibly important – you want to find the best talent and the best fit the first time around, so you don’t end up wasting more time and more money. And HR can do that for you.
Knowing the ins and outs of employment law can be painstaking. All it takes is one mistake when hiring or terminating a staff member, and you could get slapped with a legal problem. If you don’t know employment law, you could be putting yourself, your business and your reputation at risk. So to mitigate your risks and these conflicts, use an HR professional who knows how to remain compliant with your provincial and federal laws.
Did you know you need to consider your workplace safety within your office? Regardless of the environment, workplace safety is high on the compliance list for provincial and federal governments. Human resources professionals play an important role in ensuring your employee health and safety, as they know the workplace, the employees and their job demands.
Employee Handbooks and Code of Conduct
Does your business have an employee handbook or a code of conduct? If not, you should. Even if you only have a few employees, you still need a manual or handbook to lay out the rules, regulations and expectations you have for your employees. These guidelines make it easier for employees to know exactly what’s expected of them, but they can also be used to cover your back in case of employee disputes.
I have small-business budget, I cant afford HR.
The bottom line? Even small businesses need some kind of HR presence. There are a number of things that human resources professionals can do for a business that other employees just can’t. You’ll save time and money in the long run by using HR from the start. And you are mitigating a lot of risk.
Keep in mind – you don’t necessarily need to hire a full HR department or team. One of our consultants here at HR Squared can handle your HR requirements on a consultancy or ad hoc basis. You can also consider hiring one of our HR Advisors part-time, assisting you with all your compliance, legal, recruiting and regulation needs.
Contact an HR Squared specialist today and lets see if we can help.