The Human Resources Needs of a Small Business Overview

Many small business owners wonder when they will cross the threshold of needing a dedicated staff member or group to take care of their human resources needs. A company will usually able to meet the demands of their team members easily enough at first but will find, as time goes on, that more attention will need to be paid to this particular aspect of running a private enterprise.

There are a variety of software options and services available to help managers with their work load. We will discuss some of these but will be mainly discussing the necessities that arise regarding human resources for small companies. For our purposes, a small business is generally defined as having 50 employees or less.

One of the main concerns that owners will have in regards to purchasing products to help them will be the cost factor. No one wants to spend a tremendous amount of money buying features they won’t need in order to manage their small work force. This is why it is important for firms to have a firm grasp on what their obligations actually are.

Compliance Issues

The great work of any human resource department is to make sure that their company is compliant with state and federal law. There are a multitude of regulations, depending on the field of expertise, that a group will need to be knowledgeable about. These rules need to be reflected in company culture and should carried forth from day to day. In addition, as mandates change, human resources staff must continually be aware of these updates. Daily operations need to be adjusted whenever this happens, and employees need to be educated on the guidelines whenever they shift.

Certain federal and state protocol need to be posted in a public place where everyone can see them. It is also important to create a handbook with workplace policy that all crew members will have access to. Not only will taking these measures help to guard against inadvertently violating the law, but it will also safeguard the good reputation of the employer. It can save money in legal fees, and it will help to prevent employee lawsuits.

A good manual needs to include the firm’s vision statement, the objectives of the guidebook, and the policies relating to new hires, equal opportunity, discrimination and sexual harassment, confidentiality, open door code, use of the computer and other equipment, behavior on social media platforms, citizenship, work categories, pay, dress code, abuse of drugs or alcohol, intermittent testing for substance abuse, workplace romance, the rewarding of achievements, chain of command, filing of disputes, and disciplinary protocol.

Employee Files

Every worker must have several files kept on him or her. There needs to be a record of any pertinent medical issues, excuse notes from doctors, reports relating to disabilities, and insurance applications. In addition, their I-9 filing must also be kept up to date, and a log needs to be stored that has any matters relating to disciplinary actions. Additionally, since it is possible for people to write grievances against company rulings they consider unjust, there needs to be a copy of all such paperwork.

All applications and resumes need to be in an employee’s folder as do any contracts the management has with their professionals. There should be copies of W-4s, benefits information, and awards given. Evaluations will usually be given at specific intervals, and it will be important that these be retained as well. There are software programs like Bamboo HR that can help with these tasks. Bamboo HR also allows personnel to easily edit their own data and to view their documentation at will.

Payroll Requirements

The handling of payroll is one of the largest responsibilities associated with with overseeing paid faculty. Part of this requires the accounting of time worked and whether these hours have crossed into overtime. There are also needs to be a reckoning of money withdrawn for taxes, and this needs to be forwarded to the appropriate governmental agencies. Deductions must be taken to provide for medical, dental, and workers’ comp insurance, union dues, retirement plans, and for mandated wage garnishments.

The amount for each worker must be tabulated according to their agreed upon salary, and checks must be cut and signed each pay period. This duty is sometimes outsourced because it can prove to be more efficient. Instead of having a person or persons complete this function every pay period before switching to their other projects, it can be more effective to have a focused group assigned to this work. Also, it can be less expensive to pay for this as a service than it would be to have an employee tasked with its fulfillment.

Businesses that provide expertise in this regard are often highly conscientious, as their reputation and future success depends on doing a good job. They often provide faster turnaround and are generally more knowledgeable than is the average hire. In addition, such services tend to be extremely aware of current laws and of how to implement them. Many firms have been able to put their paid professionals back to working on more important assignments by choosing this route. For those looking for software to help in this way, Namely is a popular choice. It is especially intended for small companies, and it has been designed with user-friendliness at the forefront.

Hiring and Benefits Packages

There are a variety of options today to assist with job postings and with finding qualified applicants. Programs like Jazz and PeopleMatter exist to combine features created to screen interested candidates with tools like social media sites. These are helpful to small companies, as a great deal of money can be lost in employing the wrong person. In addition, firms will need to properly manage the administration of benefits in the following areas: types of absentee leave, vacations, 401K plans, insurance, and reimbursement for certain kinds of tuition.

The scope of things related to the employment of a work force can be daunting, and it helps to be organized and educated on the subject. It is vital to seek out advice and help and to do research on everything that will be involved. With proper management, the process can run smoothly and effectively, as it provides vital support to help a company succeed.