Small businesses may regard the necessity of back office operations as a part time job. While accounting or human resources may not be the bulk of the company needs, hiring professionals for these duties greatly reduces stress for those who are not experts and increases the growth potential of the business. Want to hire the right people for your business, reduce turnover, and mitigate litigation risk?
If your long term business goals includes ambitious growth, do you have a plan to meet those objectives? While it may be easy for someone to perform their primary function as well as a few hiring duties here and there, company growth means more time must be dedicated to recruiting, hiring, on boarding, managing skills and benefits, training, and other tasks. Hiring an HR professional means that job functions can be specialized and given to those who perform them best. A good rule of thumb for hiring a dedicated HR professional is growth beyond 30 -50 employees.
Locating the right person for the job can be quite a task. Beyond putting up an ad placement on job boards, the person managing HR must also make the time to qualify the individual applicants. Scrolling through resumes alone can be a full time job, including weeding out those who are obviously lying about their employment history. If the plan is to grow the company quickly, time must also be set aside for interviewing, screening, and determining the best fit for your company culture.
3. Consistency & Organization
A successful business requires consistency in their processes from hiring and firing to research and development, customer service, and so on. In any growing business, there is a tipping point at which processes should be organized and documented. Once these processes are well organized, the employees of the organization know what to expect in their workplace environment. Setting expectations is crucial to employee satisfaction and retention. A human resources professional will help develop and document processes such as hiring policies, benefits, training, and how to terminate an employee without putting the company at risk for a lawsuit.
4. Creating Focus
Typically, the small business back office operations may be divided among executives or other employees within the organization. With company growth, these employees will be required to focus more fully on their primary jobs, pulling them away from necessary business tasks. Hiring professionals to handle these tasks allows individuals to specialize in what they do best. Company executives can also rest easy knowing that the operational side of the business is still fully functional as well.
Human resources professionals will work with company executives to develop an idea of company culture. These professionals will also have experience and expertise as to what works and what doesn't within a growing business. During the hiring process, they have the ability and foresight to weed out applicants that don't fit the culture. They will know what rules to set, what benefits to offer, or any other ways to develop a workplace culture that creates and retains happy employees.
6. Employee Retention
All of the above helps to create an environment where employees feel safe, comfortable, and have an idea of what to expect in the days of change and growth within the business. An HR professional will offer consistent policies for development and goals for employees, as well as processes for open discussions if they feel dissatisfied at work. Human resources pros are experts at managing people, creating a positive and productive workplace, and helping to mitigate the uncertainty in a business that's new to a market.
The very last thing a growing business needs is a lawsuit. HR professionals will know the in's and out's of legal compliance during hiring, background checks, termination, and other federal and state requirements. Depending on the number of employees, some laws may apply that company executives wouldn't necessarily be aware of. Background checks require compliance with the FCRA, including applicant consent. Not hiring or promoting an employee also requires that the business covered all its bases in the case of discrimination. If the business doesn't have someone who specializes in these rules and compliance, the risk of litigation can be a show stopper.
If your company is only handling human resources part time, evaluate your needs to see if it may be time to hire someone full-time. Is your company growing quickly? Are you experiencing turnover at a rapid rate? Is company morale at an all time low? Consider how a qualified and experienced human resources professional can turn things around.