Businesses with 20+ employees understand the significance of having a professional handle their HR functions especially when it comes to performance issues, policy development, terminations, salary negotiations, unemployment hearings and more. However, new businesses or those with 1 to 5 employees tend to think that they don’t need HR. One of their biggest concerns is that they don’t think that HR is needed for such a small staff and what would that cost? The truth is, as soon as you hire 1 employee, businesses should consult HR. Here are some of the reasons:
- Recruitment Practices– HR professionals know the current laws pertaining the discriminatory practices that can get a small business in trouble when recruiting new talent. Also, there are some best practices that HR can provide which will save the business time, energy and money when hiring their staff.
- Employment Documents– When a company is sued by employees, the most referred to document is the employment manual. Every business needs to ensure that their employment manual is up to date with the state and federal laws (they change often) and ensure that it is user-friendly.
- Employment Classification– Small businesses, tend to get confused between the legalities of hiring an independent contractor vs. an employee. There are distinct differences between the two and improperly classifying someone can cost the business a lot of money.
The bottom line is, whether you have 1 employee or 20, make sure that you consult with knowledgeable HR professionals and make them part of your success team; you won’t regret it!