As a small business, you probably do not have an unlimited budget for anything. One place that often gets overlooked when resources are tight is human resources. But even a small company should make efforts to follow good human resource practices and implement some type of program in their business. Why? It can seriously affect your bottom line. Discover a few of the biggest ways good HR can do that.
Reduced Noncompliance Risk
Human resources has to keep up with many different types of compliance requirements, both state and federal. They are responsible for knowing which employee notices must be posted and when, how or when paychecks must be presented, how long the company has to provide final paychecks, what money can be withheld, how to protect employee privacy, and how long to retain each type of document.
These rules vary by industry, job type, and year. And if you do not have anyone who learns about and implements such requirements, your business is at risk of audit, fines, penalties, censure, or closure.
Even the smallest employer can reduce these risks by assigning an employee or two to work with a human resources support company that consolidates much of this information. Such a service helps your employees find what they need more easily and faster without having to hire a dedicated, full-time HR department.
Better Hiring Practices
Finding and bringing on new employees is expensive. You may have too few employees for a period of time, you have to actively seek out good candidates, you must run background checks, and you will need to train whomever is hired.
The less often you have to go through this process, the less money your company will spend on it. That calls for good hiring practices that result in finding better candidates, matching people and jobs well, and on-boarding staff properly. But many small businesses are not trained in methods that can bring in the best new hires.
A good HR procedure can help with this. You can learn how to do background checks or use certain interview skills to weed out less suitable candidates. Even something as simple as understanding how to write a good job description and ad saves time and money during the interview stages.
A happy workforce is one that sticks around for the long run. And that is good for your bottom line because it's much less expensive to keep a good employee than to find a new one.
As your business grows, you will need to replace informal one-on-one employer/employee interactions with procedures and guidelines that everyone can learn and follow. You may need to do things like write an employee handbook, establish review procedures, offer company-wide benefits, and mediate conflicts. Continuing to think like a tiny employer could cause problems among the growing staff and management.
HR — even a support service — gives guidance for doing all these things. First, it provides forms and outlines for addressing common problems, such as how to take progressive disciplinary action in the right order. Perhaps more importantly, though, human resources advice draws on the experience and expertise of professionals and larger companies who have seen it all before.
Could your business benefit from improvement in any of these areas? Most small employers are in the same situation. And that is where AmCheck Austin can help. Our HR support services offer many ways to help your assigned human resources staff members on a budget. From sample communications to HR forms and posters, small businesses like yours can enjoy do-it-yourself assistance as well as live support. Call today to learn more.