Does my small business really need HR?

Summary:  All business sizes can benefit from HR, you need determine how much.

Well that depends.  Don’t you hate that answer, yeah me too. However it doesn’t change the answer. All business require some type of HR support, the real question is how much. So let’s take a look at what you need to consider.

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Questions to consider:

Are your employee files in order? This does not mean do you have employee files. There are certain documents that should be in the employee files and other that definitely must not be in the files.

Are you employment posters up to date? Even if you have one employee you need to place the posters in an area where employees will see them.

Do you have an employee handbook/manual? Nothing elaborate is needed here, you do need one place where your policies can be accessed. It should also include your policies on vacation, benefits, professionalism, etc. If they need to know it – put it here.

Do you have a performance review system? As you know I am not a big fan of formal reviews if this is the only time feedback is given. People do like to have something in writing so be sure to summarize their year in a document.

Does your compensation have a structure? Even if you only have two employees, it should be structured. This is your highest cost, you don’t want it to be all over the place. Logic and reasoning need to prevail here.

How do you recruit? Your employees are an important part of your business. Are you paying enough attention as to how you find them?

All of the above can be solved with someone coming in and taking care of it for you on a project basis. 

Do you find yourself with on-going employee issues such as these:

High turnover. Do your employees seem to come in and out of your business like there was a revolving door? Why? How can your turn this around?

Describe your culture. Do you have a place where people want to work? What is working? What’s not? Are thing getting done because of you or in spite of you?

How many employees do you have? This is the big question for determining if you need full-time help. Each type of business has it’s own point of needing someone full-time – the general rule (but not an absolute) is around 100. With that being said I have seen businesses with 60 employees have an on-site HR person. Ask yourself  if the person would be consistently busy or just occassionally.

All of these are instences where you would need either a more dedicated on-going consultant, a Part-Time person or a Full-Time Person.

Can you benefit from HR help? Absolutely!

How has HR benefited your business?