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A human resources department is a great asset to businesses of any size. The moment you take on employees your business becomes more complicated. Without a human resources (HR) department it can become overwhelming to handle all the issues on your own. However, if you have a human resources department they can handle the small stuff and only come to you with the big stuff.

Human resources teams can handle a lot of different issues. We’re only going to cover three of these areas today. However, because the scope of an HR department is far reaching, you should determine which areas you need help with in your business and find a HR manager that can help tackle your problem areas.


Human Resources Handle Hiring

If you’ve grown your small business from a one-man show to a thriving business, it can be hard to relinquish control, especially when it comes to bringing people onto your team. However, this is a great task for your human resources team. HR professionals know how to find the right people for the position.

First of all, a lot of the hiring process doesn’t need to be done by the business owner. Your HR team can help you by sorting through resumes and cover letters, a tedious task that is essential to finding the right candidate. They can do online searches of your applicants.

Once you and your team have selected the potential candidates, the human resources department head can interview the applicants. Once they’ve narrowed the selection, you or the department head for the open position can do a final interview and choose your new employee.

Taking all of these steps off of your plate and using a HR team to do them, frees you up to continue running your business.

Human Resources Handle Hiring

Human Resources Provides Conflict Management

Conflict arises no matter how great a company, it’s employees or it’s management team is. It’s unavoidable. However, having a way to handle those issues is where a good business can become a great business. A human resources team is equipped to help handle conflict.

According to Joseph Grenny, co-founder of VitalSmarts, a company that focuses on training and organizational development, every unaddressed conflict wastes around eight hours of company time, either through gossip or other unproductive activities. You can avoid this by urging your employees to talk to their HR rep about any issues that arise in the work place.

This is especially helpful to handle manager-employee situations. Many employees worry that they can’t express any issues to their managers without losing their jobs, which creates a hostile environment. HR reps can help employees address issues with their managers in a safe place. Then they can work with managers to solve the issues.

Human Resources Can Increase Employee Retention

A company that values its employees is more likely to keep them. Simply having a human resources department shows your employees that they have someone who is looking out for them.

The HR department is going to become the voice of the employees. Which means as a small business owner, you should listen to suggestions or complaints that come from HR. They are telling you how your employees are feeling. If you want to have a great company you need to listen to everyone, especially those at the bottom of the totem pole.

voice of the employees

FAQs about Human Resources for Small Businesses

What role does a human resources department play in small businesses?

A human resources department handles various issues, including hiring, conflict management, and employee retention, alleviating burdens for business owners.

How does HR assist in the hiring process?

HR professionals manage tasks like sorting through resumes, conducting online searches, and conducting initial interviews. They streamline the hiring process, allowing business owners to focus on core operations.

Why is conflict management crucial in a small business setting?

Conflict is inevitable in any workplace. HR serves as a mediator, resolving disputes between employees and managers, fostering a positive work environment, and saving company time lost to unproductive activities.

How does HR contribute to employee retention?

By valuing employees and providing a supportive environment, HR helps increase employee retention. The department serves as a voice for employees, conveying their concerns and suggestions to business owners for a more inclusive workplace culture.

Why should small business owners heed HR recommendations?

HR represents the pulse of the workforce. Listening to HR insights and addressing employee feedback fosters a collaborative environment and contributes to the overall success of the company.

As businesses grow, small business owners can't handle everything on their own. A human resources department can help your business run smooth.


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