The Top 5 Reasons Why HR is a Game-Changer for Small Businesses
Launching and scaling a small business is a thrilling venture, but comes with a multitude of challenges. Having someone on your team or having access to someone who is dedicated to the Human Resources (HR) function becomes a secret weapon that can significantly impact a small business’ trajectory. In this blog post, we’ll delve deeper into the reasons why every small business needs someone well-versed in HR practices.
1.Help with the Best Hiring Decisions
In a small business, each team member is not just an employee; they're a critical contributor to the business's success. A knowledgeable HR professional ensures that the hiring process is consistently and finely tuned. A consistent and effective hiring process helps you bring individuals on board who not only possess the necessary experience, talent, and skills, but also resonate with your culture and core values.
Why is this important? One of the biggest strains on the recruiting process is the length of the process with 89% of potential candidates being lost due to a prolonged recruiting process. A long and drawn out screening process is typically because of a lack of an established and consistent recruiting process, missing out on great candidates. A careful selection fosters a team that performs and, in turn, your small business benefits from this output. Check out our Recruiting & Hiring Checklist here to help guide you through your hiring process until you enlist our help!
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2. Optimize Retention
Losing a key team member can have a profound impact on a small business. HR professionals play a crucial role in facilitating employee retention strategies unique to your industry and culture. We understand the distinctive factors that contribute to job satisfaction within a smaller organizational structure. The top three reasons that employees provided for leaving their jobs in 2023 were:
lack of career development (22%)
lack of support with work-life balance (12%)
their manager’s behavior (11%)
HR helps small businesses create an environment where team members are motivated to stay for the long haul. Of course, there’s never a guarantee that employees will stay forever no matter what you do to try to retain them. At the least, employees want to know that there is potential for a long-term career with your business, that they are given challenges and see themselves as part of your company’s mission, and that they are treated with respect. HR can help with formal initiatives focused on employee engagement, growth and development opportunities, and a healthy work environment.
3. Navigate Employee Relations
It’s no secret that interpersonal dynamics play a significant role in our day to day lives and the stakes are even high amongst workplace teams. Again, when people are interacting, it is inevitable that conflicts will arise. Luckily, HR professionals are adept at handling employee relations, resolving conflicts, and maintaining a harmonious workplace atmosphere.
Unchecked employee relations issues lead to a multitude of issues in your business to include less engaged employees, bullying, harassment, discrimination, burnout, mental health decline, and loss of productivity. Guess what these lead to? A loss to your bottom-line profits.
HR contributes to a positive work environment crucial for the productivity of your business by addressing concerns promptly through proper investigations, handling conflict through appropriate resolution techniques, and promoting open communication. Take a look at some of these unfortunate statistics about the U.S. work environment from HRAcuity:
22% of employees are less engaged at work because of workplace conflicts.
Only 12% of U.S. employers act to eliminate workplace bullying.
Workplace bullying costs $250 million annually.
48% of American adults report experiencing abusive behavior at work.
Almost 60% of HR managers have seen violent incidents as a result of workplace conflicts.
4. Ensure Compliance
Compliance with employment laws and regulations is as crucial for all businesses. Most clients of CPR have likened the web of compliance like sitting in a chair for a root canal – ouch! Many events in history have paved the way for many of the federal regulations businesses are required to adhere to.
The U.S. Department of Labor (DOL) and the Equal Employment Opportunity Commission (EEOC) are the two agencies that hold the bulk of responsibility for enforcing employment laws and regulations .The U.S. Department of Labor (DOL) was established in 1913 to “foster, promote and develop the welfare of working people, to improve their working conditions, and to enhance their opportunities for profitable employment.” The Equal Employment Opportunity Commission was established after the passage of Title VII of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, sex, color, religion and national origin in recruitment, hiring, wages, assignment, promotions, benefits, discipline, discharge, layoffs and almost every aspect of employment.
An HR professional like CPR ensures that a company's policies, procedures, and practices align with legal requirements. This shields you from potential legal complications, fosters a reputation for ethical and responsible business operations, and helps manage your legal risk that can result in fines, penalties, punitive damages, and even imprisonment!
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5. Long-Term Strategy
One often overlooked talent of a great HR professional is their contribution to the strategic planning required for sustainable growth. No one establishes a small business to remain in business for the short-term. Agility is key, but long-term success is the goal. HR can help develop talent acquisition plans, succession strategies, and leadership development programs tailored to the specific needs of your business. This foresight ensures that your business is not just thriving in the present but is well-prepared for future challenges and opportunities.
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Final Thoughts
Having access to a company like CPR who is dedicated to the HR function is not just a luxury but a strategic necessity. We are the architects of a thriving workplace culture, the guardians of compliance, and the planners for sustained growth. By investing in HR expertise, small businesses position themselves not only for immediate success but for resilience and competitiveness in their respective markets. Consider the impact that an HR consultant like CPR can make — it might just be the catalyst your business needs to conquer new heights!
Take a look at our services and offerings here!
Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.
