How Can HR Help Small Business Owners? Whether you’re just starting as an entrepreneur or a business owner, there’s a lot of information out there about starting and running a business. The good news is there’s plenty of good information out there, but the hard part is knowing where to look for it. It’s good news that anyone can create a business. It’s also bad news that creating a business that grows and thrives is not as simple as it seems. There are a few things you need to have to create a business that will last.

How to Get the Most Out of HR for New Small Business Owners

That’s where HR comes in. We’ve done the hard work for you by scouring the internet and curating a list of low-cost, free online resources that will help you get started. From blogs and courses to books and podcasts, we’ve got you covered. Keep bookmarking this list and come back to it as your business grows.

The first thing you need is business knowledge. But the other few elements are just as important. If you want to turn a startup idea into a thriving business, you need to be able to follow through on it as well as acquire business knowledge and skills.

If you’re considering delegating HR responsibilities to your small business. You’ll want to make sure you’re as well-informed as possible, more to know about BoostFrontline. Here are some other resources for small businesses that can help you out:

  • For small businesses, SHRM has a great selection of helpful articles.
  • For US-based small businesses, the Department of Labor has a great set of resources, especially if you’re looking for information on compliance issues.
  • For U.S.-based small businesses, the U.S. Chamber of Commerce has a great series of resources, including blogs, podcasts, guides, case studies, and more.
  • For small businesses looking to learn more about HR, AIHR offers several free online resources.
  • For small business HR topics, check out our Connecteam blog.

HR for every small business owner or entrepreneur needs

When you run a small business, you have a lot on your plate. From sales to marketing to product development, there’s no denying the importance of making a profit and staying in business.

That’s why it’s no surprise that HR work can sometimes fall by the wayside. But don’t worry, there are some essential HR basics every small business owner should be aware of.

  • Are you aware of all employment laws that apply to your business?
  • Do you take the time to understand your staff’s training needs?
  • Have you evaluated your compensation to ensure it’s fair and competitive?
  • Are you doing all you can to ensure the safety of your employees, effective conflict resolution, a diverse and inclusive work environment, and more?

If you haven’t, you’re not the only one. According to a Paychex survey, 21 percent of small business owners said they didn’t feel confident managing the HR function. Another 21 percent said they weren’t aware of or weren’t enforcing important employment laws that affect their business.

In this article, I’m going to walk you through a few key HR functions every small business owner needs to know about. Since this is a short article, I will only give a brief overview of each of these functions. I’ll also link to more resources if you’re looking for more information.

If you’re interested in learning more about HR topics for small businesses, check out our complete Small Business HR Guide, on It covers everything from hiring to firing and everything in between.

HR Hire and Recruitment the Best People

No matter how well your business idea, your marketing strategy, or your planning, it’s your employees who have to put it all together. Without the right people to design your products and represent your company to customers, you’re in trouble. According to a Career Builder survey, 70% of employers hire the wrong person to fill a position. On average, a bad hire leads to lost productivity, time, and cost to hire and train a replacement, etc.

The first step to effective hiring is to create a job description that speaks for itself, doesn’t exclude good candidates from the job, and is published in the right place. Then, you’ll need to prepare for the interview. You’ll need to know what to ask of your candidate and what to avoid. You’ll also need to create a competitive salary and benefits package for your candidate. Finally, you’ll have to go through important legal hoops.

Recruiting and retaining high-quality candidates is one of the top HR responsibilities for small businesses. However, it comes at a price. High-quality recruitment and retention practices require time and resources to develop and implement.

The recruitment process includes:

  • Preparing job descriptions
  • Framework for hiring decisions
  • Managing the recruitment process, including interviews
  • Completing compliance paperwork, such as employment contracts or work eligibility documents
  • Designing an onboarding process

Improving Employee Satisfaction and Engagement: Diversity, Equity, and Inclusion (DEI) must be more than just a “nice to have”; it must permeate every department and function within your organization. DEI is a key factor in attracting high-quality candidates; nearly 80% of employees say they want to work for a company that values diversity and equity.

Retention: In addition to recruiting and retaining candidates, HR is responsible for.

Employee engagement – HR Get your new staff up to speed quickly

Employee engagement is all about how connected an employee is to your business and what you’re trying to achieve. It’s a key factor in how successful your business is, and it can have a direct impact on your bottom line. Employees who are engaged are more productive and don’t miss work as much.

On the flip side, 74% of employees who are actively disengaged are looking for new jobs or looking for other opportunities. Human Resources creates strategies and processes to address any issues that could be causing employee engagement, like improving morale, which can help with retention and your business’s bottom line.

When you’ve put in the time and effort to hire the best employees, the last thing on earth you want is to lose them. Unfortunately, according to a current survey, 40% of employees quit their jobs within the first year due to poor job internships.

When you’re just starting, you can train your first few employees on your own. But as your business grows, you’ll need to create an orientation training plan that covers at least the following:

  • An Intro to the business history and Values
  • Practical information about pay and benefits
  • Company policies and vacation time
  • Business structure and key personnel
  • Who are your clients and what do they like
  • What behavior is expected of employees
  • Tools and software the new employee needs to learn

Compensation Benchmarking

If you’re a small business owner, HR is usually in charge of figuring out your compensation philosophy, how you want to pay your employees, and how you want to structure your pay structure. You need to know if there are any minimum wages in place and what your competitors are offering.

Employee benefits are also a big part of the compensation package, and it’s important to remember that benefits are what employees care about. Payroll and taxes are also important, but they can get complicated and take up a lot of time. Most small business owners don’t realize how long it can take to pay their employees – it can take almost five hours every pay period!

They offer competitive pay and benefits: How can you determine the right amount of compensation for your employees? Once you know the right amount, how do you adjust your compensation to keep up with changing market conditions and the ever-changing skills and experience of your employees?

Offer attractive benefits: Employees who are attracted to your company by attractive benefits, such as health insurance and parental leave, as well as retirement plans, are more likely to stay with your company long-term.

Communicate clearly:

It’s at the core of every successful business. But the flip side of that coin is that poor communication can be catastrophic. According to a survey by Fierce Inc, 86% of employees said that workplace failures were due to lack of collaboration, or ineffective communication.

It’s no secret that small businesses have the advantage of being able to communicate with just a handful of employees, but you still need to be careful how you set things up. In the next tutorial, you’ll learn everything you need to know about keeping people informed, communicating the company’s values, getting feedback from employees, and more.

Provide effective training and development:

Providing continuous professional development opportunities is a key factor in boosting employee motivation and engagement. Employees are eager to learn new things. A Deloitte study found that nearly 80% of Gen X and Gen Y employees cited formal workplace training (CT), on-site training (OT), and professional development (P&D) as essential for their performance.

A well-thought-out T&D program also prepares employees for internal promotion, saving you time and money when it comes to hiring from within. HR’s T&D responsibilities include creating an Employee Handbook that outlines your company’s mission, key values, employee expectations, company policies, and procedures, as well as disciplinary and termination policies.

While we’ve already talked about onboarding new employees, training is a constant necessity. In an ever-changing and competitive business environment, you need employees who are up-to-date and learn new skills all the time.

Good training is also a great way to increase employee happiness and loyalty. Don’t think you can afford a corporate training program? Don’t worry, there are lots of free and low-cost options out there.

HR Get the Right Help:

If you’re running a small business, you’ve probably got a lot on your plate. Planning for the future, coming up with great sales and marketing plans, keeping an eye on your accounts, and so much more. That’s why it’s important to get the right help with HR. We’ve covered a lot in this article, but if you do everything we’ve recommended, it can get pretty overwhelming.

So, if you’re looking for help with HR, you’ll probably need to hire someone, but if you’re a small business, it’s more likely that you’ll need to hire an outsourcing service or use HR software. We’ve got a tutorial coming up on HR software soon, but before that, you can check out the following tutorial to learn more about HR outsourcing and get profiles from some of the top providers.

The advantages of delegating HR: Human Resources (HR) plays a critical role in the overall success of a company, whether it’s a small or large one. HR establishes the tone of internal communication and has a direct impact on your company’s culture and financial performance.

Your employees are the most valuable asset you have in your organization, and ensuring their health and well-being is a top priority through the implementation of HR policies and processes.

Real-life practice is the best small business resource:

  • Whether you’re just starting or looking to scale your startup venture or side hustle, we’ve got you covered.
  • We’ve shared some of the best small business resources we’ve found to help you get started, manage, and scale your business.
  • But in the end, it’s real-life experience that’s the best resource.
  • So get out there and get started! Or continue scaling your business for success.

No matter what stage you’re at in your business journey, you can count on us to help you. Whether you’re looking to create a stunning landing page for your small business or plan and optimize your social media posts, we have the tools to help.

How to Get the Most Out of HR for New Small Business Owners Image
How to Get the Most Out of HR for New Small Business Owners; Photo by Edmond Dantès.

When is the right time to delegate HR in your Small Business Owners’ Help?

If you’re like most small business owners, you spend most of your time managing the day-to-day HR functions of your small business. However, this can quickly get out of hand, especially as you grow your business and the number of employees you have.

  • Handing over the HR responsibilities of your small business to an HR person or team can save you time and money in the long term.
  • It also ensures that your organization is compliant with all relevant labor laws.
  • In addition, it builds an internal team that understands the HR needs of your organization.

So, what are you waiting for?

By the end of this article, you should have a clear understanding of the key HR basics that small business owners need to know. Is HR the Right Choice for Small Business Owners? Now that you have a better understanding of what it means to be a small business HR manager, let’s take a closer look at each of these areas of HR basics.

If you’re interested in taking action on each of these areas, I encourage you to take a look at the linked resources below when you have the time. Or, if you’re more interested in learning more about HR for small businesses, you can check out the entire series on small business HR basics.


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