Prioritising People: Why Even Small Businesses Need HR Staff

Small businesses exist within a dynamic market, where the constant change in customer preferences, and challenges from competition, apply pressure to the often thin margins. This is why human resources (HR) is a frequently neglected aspect of a growing business. 

This, however, is a mistake. Even from an early stage, small businesses can gain immensely from developing a HR department. Moreover, these gains will stay with the business and make transitioning to larger business structures far less volatile.

Why Early is Better

Waiting until your business grows before considering HR can be a costly mistake. Small businesses tend to overlook the importance of structured processes in the early stages, which often leads to disorganised practices, miscommunication, and reactive problem-solving.

A HR professional, particularly someone with formal qualifications like a Graduate Certificate in Human Resources, brings invaluable skills that ensure your business starts off on the right foot. The right HR professional can free up the limited resources of a small business to focus on product development, sales, and other aspects of the business that generate revenue, but require focused attention. 

Recruitment: Getting the Best People 

The most important aspect of a small business are the employees. More than products, ideas, sales strategies, employees have total capacity to make or break a company. An organisation with a driven, intelligent, and communicative team will harmonise and spontaneously produce solutions to whatever problems arise. A distracted, disorganised, and self interested team, on the other hand, ensures the failure of a small business.

Upon realising the importance of hiring the right people, many companies have implemented drastic measures. Many companies of all sizes, after investing the resources to train a new employee, will offer them a lump payment to leave. This ensures that only those people who are invested in the company will stay. While this is an extreme measure, and can only be implemented in narrow circumstances, it does illustrate the importance of hiring.

All this still begs the question, how can you ensure the best recruitments? The answer… early investment into HR. HR professionals help refine job descriptions, manage interviews, and vet candidates to find the best match for your company. This ensures you don’t just hire people to fill positions but rather find employees who are a long-term fit for your company’s culture and vision.

Furthermore, by investing in HR early, the professionals are able to learn exactly what is needed for your business. By waiting until the business grows to a moderate size before developing a HR department, you risk a disconnect between that department and the core values of the business. 

Defining the Culture

Culture is the invisible framework that dictates how your business runs on a daily basis. Many small business owners believe that culture will organically emerge, and while this is true, it fails to recognise the importance of top-down incentive structures. Without this external governance, a company’s culture can become fragmented, inefficient, and even toxic. 

HR professionals play a key role in defining and shaping the culture of a business. They set the tone for policies, values, and acceptable behaviour in the workplace. While many people worry about a HR department too rigidly restricting the values of a company, thus stifling creativity, this can be insulated against by investing in HR early. A HR manager can learn what makes a small business tick, and then work with these values to construct a culture that fits the company’s mission. 

Waiting too long, however, can force you to develop a HR department that acts as a separate authority over the company. This is where the problems may arise. 

Safety, Freedom and Organisation

Compliance and safety might seem like concerns for larger businesses, but even small companies have legal obligations to their employees. HR professionals ensure that a business remains compliant with local labour laws, health regulations, and industry standards. 

This ensured safety gives the business the freedom to explore within these legal boundaries. A small business must innovate to stay afloat. To keep ahead of competition and make the most of opportunities when they arise, each member of the business must not feel inhibited when making these crucial decisions. As such, not having to worry about the legality of actions, and the peace of mind to know that everyone will be safe, can allow the small business to remain nimble.

These freely moving parts are then finally able to come together to create an organisation. When the employees work together, under the right leadership, and within the constraints of the law, a business is able to not only create profitable products, but also drive the market towards new horizons. 

When Things go Wrong

With all this being said, the nature of small business is fraught. Things will go wrong, and when they do, it is important that a trained professional is there by your side to ensure a smooth recovery. 

No workplace is perfect, and even in small businesses, issues like disputes, harassment, or underperformance can arise. Without a HR professional in place, these issues can escalate and have long-lasting effects on morale and productivity.

HR staff are trained to handle difficult situations professionally and discreetly, ensuring that employees have a safe and confidential space to voice concerns. More importantly, they know how to mediate conflicts, investigate grievances, and take action that aligns with both legal obligations and company values.

Conclusion: HR is an Investment, Not a Cost

While many small businesses see HR as a luxury or an expense that can be delayed, this is fundamentally a suboptimal move. The development of a HR department early doesn’t just situate the business for future success, but it also pays dividends immediately. Whether it’s recruiting the right talent, defining your company’s culture, ensuring compliance, or handling disputes, HR plays a vital role in long-term success. 

Investing in a HR professional now will pay off in the future by promoting a positive, thriving work environment where employees are motivated, valued, and protected.

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