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Top 5 HR Concerns for Small Business Owners

Posted by: on March 6, 2017 in employee relations Human Resources PEO


Business owners often spend more of their time struggling with HR issues than developing their business. Managing human resources can be especially challenging for small businesses that lack the resources of larger organizations. Some business owners handle human resources challenges on their own even though HR duties include complying with labor law, developing relationships with employees, legal compliance, and developing talent. Here is a list of HR concerns business owners face and tips to combat the potential problems. Litigation This fear is always in the back of a business owner’s mind. Always go above and beyond to ensure that your workplace is free from discrimination and harassment. Your best chance at successfully defending an employee lawsuit is to secure documentation that would prove to a reasonable person that the employee was treated fairly and consistently with company policy. Remember, juries are made up primarily of employees, not employers. Having the documentation to demonstrate that the company treats its employees impartially and consistently goes a long way in terms of reducing an employer’s exposure to liability. Legal Compliance It is crucial to stay informed on federal and state labor laws that impact your business. Performing internal HR audits is beneficial in preparing an organization for any claims or workplace incidents. It is also essential to have a Human Resources professional readily accessible to whom you may field your labor law compliance concerns. Complying with immigration laws, wage and hour laws as well as benefit laws is complex, but a knowledgeable HR professional will provide you guidance and ensure that your organization remains compliant. Developing Talent When a small business is not in a position to offer raises or compensation in line with its competitors, HR departments face the challenge of employee turnover. Providing other means of reward and recognition might help. For example, by offering more training opportunities, a pleasant work environment, more time off and social events, the HR department helps a company leader convey appreciation for employees' loyalty and dedication. When finances improve, the company can provide commensurate compensation to employees who have held on during hard times. Ethical Behavior Small business owners typically want to ensure that any employee they hire will uphold the company's values. For example, to qualify individuals before allowing them to work, HR professionals can communicate the company's policies and procedures to all new employees and require training on adhering to standards of business conduct followed by an exam. HR professionals set the record straight so all employees know the rules.   Emplicity understands that HR Outsourcing should be simple and meaningful. As a Professional Employer Organization (PEO), we strive to be a great partner in supporting your business. If you would like to request more information on how we can assist your needs, please reach out to us at 877-476-2339. We are located in California – Orange County, Los Angeles, and the greater Sacramento and San Francisco area. NOTICE: Emplicity provides HR advice and recommendations. Information provided by Emplicity is not intended as a substitute for employment law counsel. At no time will Emplicity have the authority or right to make decisions on behalf of their clients.

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