4 Signs The HR Strategy For Your Small Business Is Wrong

Before we get into the details, let’s start with the elephant in the room. If you read the title and said to yourself, “I need an HR strategy as a small business owner?” then we have an even bigger problem. Yes, you need an HR strategy for small business no matter what size your small business is.

What is an HR strategy for a small business supposed to look like? Most small business owners started out working for someone else somewhere in their career so they at least have an inkling as to what a human resources department does. So, having an HR strategy as a small business owner should at least cover the basics:

1. Employee handbook
2. Job descriptions
3. HR and Labor law compliance 
4. Harassment policies and training
5. Payroll processing and payroll tax compliance
6. Workplace safety policies and training 
7. Benefits policies and offerings 

How does your HR strategy for your small business look so far in light of the list? Are there some things on the list that are not in place at your small business? Chances, there may be more than one thing you know you should be doing but aren’t. 

HR Strategy For Your Small Business Starts With An Ounce Of Prevention 

They say the best way to avoid disaster is to do what you can to prevent one. The same is true when it comes to employment at your small business. No one ever plans on something going wrong, it just generally does when you avoid things. 

Failing To Provide An Employee Handbook - One of the biggest offenders of the right HR strategy is not having an employee handbook. Most savvy small business owners are always getting to this when they have time to sit down and write it out. When does a small business owner have extra time on their hands to pen an entire employee handbook? It’s not one of those burning tasks you are on fire to get done usually. What does it cost to not have one? First of all, it causes a lot of chaos in your workplace culture. It makes employee management a reactionary practice, rather than a pragmatic one. Are you always having to reprimand employees for doing things you don’t like? Try writing what’s expected down in the first place so you won’t have to.

This also goes well with job descriptions. It’s hard to hold employees accountable for their jobs and what is expected when it is not written down and agreed to beforehand. People feel better about their work when they know what is expected of them and what their goals are supposed to be. It’s also hard to measure success with them when they don’t know what that is supposed to look like from your perspective. Job descriptions provide clarity for both of you and let you get to the tasks at hand, rather than correcting everyone all the time for not doing what you want to be done. 

Not Keeping Up With HR Law - Most small business owners will tell you they know what the HR laws are in general and keep in line with them. Trouble is, they change over time. Not only that, but even if you are making sure you stay on top of what the long arm of the law expects of you as an employer, do your employees know? A good HR strategy for your small business owner is making sure everyone is on the same page. A great way to show you care about their workplace is to make sure they know you understand what the law expects of you, their employer. Post labor law compliance rules and guidelines in public places where everyone can read them. 

Workplace safety fits easily into that category. If you want to prevent and accident then let them know how to do it. Write out safety rules for their work and make sure everyone knows what to do to prevent injury. Don’t just assume that common sense will take care of eliminating accidents. It won’t. How is your workers' compensation insurance policy? Do you have one? It costs an awful lot to not have workers compensation insurance when you paying out on a claim. Make sure you have workers' compensation for when an accident inevitably happens. 

Payroll Processing And Tax Compliance - If you are trying to process payroll yourself and keep up with payroll tax at the same time, don’t. Doing your own payroll to save money is a waste of time. There are many complexities to payroll taxes and payroll taxes. If you already have a payroll service, then kudos to you. You know what the other small business owners don’t; you have better things to do. Not paying payroll taxes will eventually cost you your business. Make sure they are paid on time. 

Benefits Are The Solution You Keep Avoiding - There are many reasons that small businesses don’t offer benefits and none of them are good. If you are tired of constantly hiring new people only to lose them to your competitors, the answer could simply be you are not offering benefits. Benefits are good insurance to keep employees at your business and lets you know you value their contribution to your success. 

How To Get the Right HR Strategy For Your Small Business Now 

Did you know one phone call could be the answer to all these holes in your HR strategy? PEOs are the perfect solution to all of these HR strategy ills for small businesses. You can think of a PEO as your partner in HR compliance and employee retention. PEOs are also the key to your growth. If you are interested in finding out how PEOs can help you on your way to a thriving business without HR headaches, contact us today for a free consultation.