Why is HR Vital for Small Businesses?
For small businesses, the Human Resources function can be helpful for much more than simply processing payroll or handling the annual open enrollment season. Human Resources plays an essential role in developing a company's strategy as well as handling the employee-centered activities of an organization.
Human Resources curbs excessive spending through developing methods for trimming workforce management costs, which includes negotiating better rates for benefits such as health care coverage. In addition, Human Resources ensures competitive and realistic wage-setting based on studying the labor market, employment trends and salary analysis based on job functions. As some small businesses have budget constraints, this Human Resources function is especially helpful.
An effective HR audit looks into every discipline of the human resources function. The purpose of an HR audit is to determine if your organization's policies are current and if they comply with federal and state laws governing the workplace.
Human Resource audits involve an organization’s strategic actions to take an intensely objective look at its HR policies, procedures and practices. This type of comprehensive review of the company’s current state can help identify whether specific practice areas or processes are adequate, legal and effective. The results obtained from this review can help identify gaps in HR practices, and HR can then prioritize these gaps in an effort to minimize lawsuits and regulatory violations, as well as to achieve and maintain world-class competitiveness in key HR practice areas.
Offering an employee bonus plan will motivate employees to improve their job performance and help the business achieve its goals. A company tends to be more attractive to prospective applicants or candidates for a job if they know that the business has employee bonus plans for its employees.
Creating incentive plans have the potential to raise morale and increase job satisfaction in a company. Additionally, staffers with high levels of job satisfaction often exhibit lower degrees of absenteeism, which can also help improve a company's bottom line.
Employers also use the policies in an employee handbook to provide the roadmap to the ethical and legal treatment of employees. It allows the employer to know that employees are informed about actions and behaviors that will warrant disciplinary action up to and including employment termination in their workplace.
Finally, from hiring the right candidates, to improving company morale and ensuring high overall performance standards while resolving employee conflicts, these are some of the reasons why HR is so crucial for business success.