Many small businesses make the mistake of believing that they don’t need to invest in a quality HR department. However, just because there are fewer people to manage doesn’t make HR any less vital to a business’s success. While a top priority for small-business owners is keeping costs low and cutting unnecessary expenses, sacrificing your HR department could end up costing you in the long run. To learn some of the many reasons why HR for small businesses is still necessary, continue reading.
Hiring a talented team of employees
When growing your business, hiring top talent is essential—especially if you have only a few crucial employees. Without an effective HR department, however, you may end up with a team of lackluster employees who stifle your business’s growth and success. HR professionals have the expertise necessary to effectively recruit, screen, interview, and recommend prime candidates in a timely manner. Because every bad hire can cost your company significant amounts of money and time, it’s important to invest in a good HR department that can help hire and retain exceptional employees that are best suited to your company and its goals.
Prevent costly payroll mistakes
Payroll mistakes can cost your company a significant chunk of change. Each year, thousands of small businesses are penalized by the IRS for payroll errors such as tax form errors, incorrect employee details, misclassifying employees, or late payroll processing. According to Connect Team, around 40 percent of small businesses are fined an average of $845 a year by the IRS because of poorly managed payroll processes. Because managing the payroll for your company is a highly detailed and time-consuming process, delegating the task to an experienced HR professional is the safest option.
Avoid devastating legal issues
A final reason why HR for small businesses is still necessary involves legal issues. Undergoing a lawsuit can be extremely devastating to small businesses due to the high costs they incur. In addition to being incredibly expensive, legal issues can also significantly damage your company’s reputation. As such, it’s important to hire an HR professional who is well versed in employment law to help avoid disastrous legal issues. A qualified HR professional will have the knowledge of state and federal laws and be able to ensure that you comply with all regulations regarding hiring, firing, and handling issues in your company. Thus, they can help make sure you don’t accidentally end up in a lawsuit.
If you’re looking to hire a skilled HR professional at your business, The Christopher Group can help. We are one of the nation’s largest and most respected boutique human resource executive search firms. When it comes to sourcing, assessing, and placing the highest-performing HR professionals where they are needed most, you can count on The Christopher Group.