Please do share your inputs on how Small Businesses can benefit with the HR Function in Place.
Responses I received from LinkedIn:
Responses For “ How is HR Important for Small Businesses?"
If you are a startup, you don't have the need to hire an HR because it will create an additional overhead. According to me, a small or startup business owner himself can manage all the operations if needed can outsource an offshore team which will be working for him from a remote place.
Small business have an advantage of having a direct interaction with the employees in the company. There are no hierarchies. So it also helps the HR design their programs for all employees in a more focussed manner. The culture formation process of a company can be easy since the size is small. All employees can be made aware of the vision, mission and core values of the company unlike it gets diluted in large organisations. People just come and go... There can be a situation vice versa also. But in most cases it depends upon how the founders want the company to shape up
HR function has no place in small businesses. Or start ups.
This kind of business is personal and the line management should incorporate the subject of HR in ther daily work.
Naresh [LION] Deevi
No matter the size HR Function is an integral part of the business..
next come whether it need a separate department( 1 or more people managing & running )....
I feel HR could be as a shared responsibility with some other role such as Admin or Finance.
While many argue that small business will have overheads etc, its essential that very basic setup signifying that the business is set to grow and people will be the strength!
Many small issues on compensation, grievances, promotion etc can be well managed without the owner getting bogged with it.
Remember for a small business its essential to work ways for surviving and growing rather think of issues that could as well be handled with a shared responsibility.
Yes this responsibility could be vested with some one trust worthy!
Small Businesses are often more critically dependent upon particular individuals serving unique functions within the organization.
For example, a single lathe operater is worth a lot more to an organization that has just the one, as opposed to an organization that has 30.
And so, it will help to have some robust framework by which to recruit, reward, retain, and so on.
HR is important for small businesses in many different areas. There are a multitude of rules and regulations that must be adhered to on both federal and state levels. Compliance, especially for small businesses, may be a determining factor in a businesses success or demise. A sound attention to HR will also help small business owners’ transition as they continue to grow. HR will help you stay compliant, setup the foundation for your company’s policies, and ultimately provide structure for managing one of your most important assets, your employees.
HR as a separate functional department really depends on the size of the startup. I've done startups with as little as 5 people or as large as 250 people. Starting a large statup business without a fully authorized HR function, is a risk which which can and should be mitigated.
this depends on the size of your business or more specifically, the number of resources that you currently have on staff. my experience has been that with under 20 people, the management team can comfortably get by using researched information and/or limited consulting help. more than that, and you should consider more professional/experienced help.
HR is important for any type of organisation, what i feel is small company needs to be grow to a big company ,so in order to make success the key point is HR, for any company to be grow the strength lies in the HR department,HR is the human resource means it is resource,which is very important for each & every organisation,specially(SME's) because they deserve it!!
All businesses with employees need HR expertise and compliance. Yet, consultant services would satisfy the needs of very small businesses.
Daniel Bloom SPHR,SSBB,SCRP
The HR function has evolved over the last couple of years. The HR professional is or should be involved in more then the administration of the services to the human capital. Every day we turn around and it seems more and more new requirements are being thrown at companies no matter what your size. I.e. If you provide products or services to a client who services the government you become a federal contractor and subject to a whole wrath of requirements.Having either an on staff HR professional or a HR professional on retainer to be available as you need them it can be critical for the success of your organization.