41% of small business owners choose to handle HR themselves. 

21% have an employee who manages HR in addition to other duties. - OnPay study

That’s 62% of small businesses without a dedicated HR employee. Is this a problem? It could be, but not if you invest the resources to set up a proper HR system.

Why does it matter?

Currently, unemployment is incredibly low, and recruiting is a challenge. Your company needs a solid strategy in order to be competitive. 

But HR extends far beyond hiring. Here are a few critical components of HR.

• Employee relations—how you communicate, foster an environment of teamwork, and handle problems. 

• Organizational details—creating and maintaining a team handbook, organizational chart, and team directory. 

• Compliance—determining correct employee status, monitoring labor laws, and abiding by all necessary regulations.

• Career development—conducting regular and productive performance reviews. Spurring conversations and actions that support employee development. 

• Protecting assets—creating and implementing policies that prepare you for the worst-case scenarios. 

So, how does a small business without a dedicated HR professional handle all of these aspects (and more)? Invest in your team.

Dedicate the resources (time, energy, and money) to educate yourself and your team on all the components of the employee journey and how to manage these well. Here are some tips to get you started:

Create processes

Processes are the foundation of your business. When it comes to HR processes, the list can be extensive: recruitment screening, candidate interviews, onboarding, performance reviews, exit interviews, etc. Without processes, there is chaos. Well-developed processes will improve efficiency and produce better results.

Establish structure 

Expectations can’t be met if they are not communicated. Structure provides clear communication of expectations. This structure comes in various forms including team handbooks, organizational charts, and company policies (i.e. time off, code of conduct and discipline, social media use, and workplace safety). Once the structure is in place, when problems arise, you can refer to it for reinforcement. 

Foster a healthy work environment

Culture is key to a successful business. Create an environment where employees feel respected, supported, and safe. Give and receive feedback regularly. Provide opportunities for career development that encourage employees to reach their full potential.

Focus on preparation 

Work to get ahead of the curve instead of running in a never-ending loop of reactionary behavior. Anticipate the needs of individuals and departments. For example, hiring additional team members in advance of a busy season allowing time for training or cross-training an employee prior to someone taking maternity leave. This proactive strategy will provide clarity and efficiency to all aspects of human relations in your company. Establishing a calm and consistent foundation for your team. 

Does the thought of doing this alone seem overwhelming? Don’t worry, we have a solution for you. The HR Course for Small Businesses provides the tools and strategies you need to manage HR well. Whether you are handling HR alone or working with a team member, this course is designed with small businesses in mind. Work at your own pace through the four pillars of the employee journey—hiring, onboarding, retention, and exits. Each pillar is segmented into multiple modules focused on one topic at a time—decreasing the overwhelming feeling and increasing your HR knowledge. With our practical tools, you’ll be able to create foundational systems and processes to support your company for decades to come.

A strong HR understanding, with well-implemented processes, can help put small businesses on the path toward continued success. Take the time to invest in the human side of your business. The return will be a culture of worth, less chaos, and more peace as you build upon the HR foundations every company needs.

Welcome to Joy of Pursuit!
Pursuing your small business goals can be challenging.
Whether you are a company of one or have a team, I can assist you with building the small business of your dreams.

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