You employ people—should you have an HR department?

You run a small business, employing individuals in roles that may range from accountants and lawyers to entry-level staff and senior management. In managing such a diverse team, the question arises: should you have an HR department?

No matter what industry you’re in, having an HR specialist can help you delegate tasks, allowing you to concentrate on growing and fostering your business. Consider the benefits of HR for small businesses and determine at what stage of your business’s growth you might need a full-time HR professional.

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Does a small business need Human Resources?

There’s no law or binding rule that states that your business needs to have an HR team. However, according to the U.S. Chamber of Commerce, you should have a full-time HR specialist if your company has at least 10 employees.

Many owners of small businesses wind up handling day-to-day tasks such as payroll and compensation, employee training, and compliancy with local, state, and federal employment laws. Not only is this time-consuming, but it also hinders a business owner’s ability to focus on what’s important: growing the business and attracting new clients. Delegate these tasks to an HR professional or team, allowing them to support the professional development of current employees and recruit skilled individuals to join your business.

How HR can help your business run smoothly

At large corporations, HR is often the backbone of the organization, investing in the long-term success of its employees while defining company culture, employee handbook, and Diversity, Equality and Inclusion (DEI) initiatives.

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However, you don’t need to be the CEO of a Fortune 500 company to benefit from HR. You might think of HR as only in charge of hiring and firing employees, but their responsibilities at any company are more than that: HR specialists are in charge of keeping your company compliant with labor laws and regulations, which can keep your company out of trouble and protected from lawsuits.

If your small business offers benefits, HR can assist your employees in understanding and navigating these often complex programs.. Lastly, if there are any issues or conflicts between employees, HR can serve as a mediator to ensure that your team works smoothly in your company.

When you should hire HR

Launching a small business is rarely easy. If you’re starting out, HR might not be top of mind: building a strong customer base and streamlining your sales or manufacturing procedures is more important. Once you’ve built a strong foundation for your business, determine what your time is worth as the business owner.

Once your business gains momentum, it’s crucial to keep an eye employee satisfaction and morale.. If you notice that you or your employees aren’t able to keep up with increased business, or there’s a notable dip in productivity, then your business might be bogged down by routine tasks.

That’s when it’s a good time to hire an HR specialist or a separate HR department. This can help employees feel comfortable giving feedback about your business, and feeling like their concerns are being addressed. This active approach showcases HR’s key role in fostering employee engagement and ensuring retention.

If you launch a small business, it’s inevitable that you might have organizational and goal setting needs to navigate. Check out more Organization tips for small businesses including how to work on reaching your goals, managing tasks with Outlook, and delegating with skill and tact.