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Why HR is Necessary for Small Businesses

The human resources department is one of the most crucial areas of any business that deals with employees. It is important to have viable HR practices to help avoid liabilities that could result in a lawsuit. The human resources department oversees things like payroll and employee benefits that need to be done in exactly the right way.

While small business owners may not have to deal with too many employees, having a good human resources department helps to make sure some procedures aren’t overlooked. Payroll, for example, involves not only producing checks for the proper amount but taxes and leaves of absence as well. If an employee doesn’t get their proper pay, they lose faith in their employer and this could result in a lawsuit if prolonged.

The HR department is also responsible for employee benefits. While many small businesses will outsource this task if only dealing with a few employees, it is still important to have a very strong benefit plan that is reinforced. The employees need to know exactly what they are entitled to in terms of insurance, 401(k) and other benefits. This ensures that employees don’t accidentally try to claim things they are not entitled to.

Another important aspect of human resources for small businesses is hiring new employees. While many bosses will still want to interview people before putting them on staff, having someone screen individuals with basic questions can be a huge time saver. The staff in human resources can also assist with the firing process, which makes the procedure seem more official and technical, rather than personal.

The best feature of human resource procedures is that it makes everything more professional and official. Having official policies that one can cite in a lawsuit can be crucial to the case. On a daily basis, these policies tell employees what to expect from their employer.

Your HR representative may also be the one who will remain in contact with our agency when it comes to business insurance matters. That, in itself, is important! We look forward to speaking with your HR representative and helping them to protect the livelihood of your company.