Small businesses often have limited resources, so they must prioritize their HR goals. In this article, we’ll explore some of the top HR goals for smaller companies, including staffing, budgeting, compliance, and outsourcing.
HR Goal 1: Starting with Staffing
To save money, it’s fairly common for small business employers to assign HR responsibilities and tasks to employees who lack the correct experience or expertise to take them on. This improper delegation can lead to disorganization and a legally noncompliant HR function, costing your company much more in the long run.
Competent HR people are a must-have, even for very small businesses. Depending on your company size, a single part-time HR practitioner – like an HR manager or generalist – might be all you need to keep everything HR-related running smoothly and compliant. Staffing should continue to be a top HR goal as your company grows to ensure you maintain a balance HR-to-employee ratio.
HR Goal 2: The Big B…Budgeting
Budgeting is an HR goal that can seem overwhelming for small businesses. You must consider both your current needs and your needs for the foreseeable future and what funds you have to cover them.
To build an effective HR budget, you’ll want to consider the following Key components and their cost factors:
- Recruiting, hiring, and terminations
- Compensation and benefits.
- Performance management
- Training and development
- Human capital management technology
- Employee relations
- Health and safety
- Legal counsel for HR-related issues
If you’re starting a new business, you should base your initial HR budget on informed projections and estimations. For the succeeding year, you can use the prior year’s budget as a benchmark tool.
HR Goal 3: Legal Compliance
Compliance isn’t just an HR goal; it’s critical for protecting both your company’s reputation and the trust of your employees. Any business with employees must comply with local, state, and federal employment and payroll laws. These laws are generally associated with the following:
- Recruiting and hiring
- Hours and wages
- Employee benefits
- Employee leave
- Health and safety
- Employee termination
Legal compliance is an ongoing goal for HR teams, as you’ll need to consistently identify, interpret, implement, and monitor all applicable laws. There are many compliance-related things to keep track of and watch out for to avoid accidentally breaking the law.
If you’re unsure if your HR policies and practices are compliant, consider consulting with an HR expert. They can perform a complete HR audit and provide the proper guidance.
Who Handles Meeting These Goals?
According to the Society of Human Resource Management research, 54% of small businesses handle HR tasks in house. Yet, CEOs at these businesses often realize they’d benefit more if they devoted this time to sales, technology, and other business functions.
The solution? Delegate at least some of your HR tasks to an external provider. An outsourced HR provider can help you plan and achieve your HR goals and, in some cases, may even cost less than hiring a part-time employee. Studies show payroll, recruitment, and benefits management are among the most commonly outsourced HR functions.
How do you know if HR outsourcing might be right for you? Ask yourself the following questions:
- Do you spend too much time on HR tasks?
- Do you lack experienced HR talent on your team?
- Are you unable to obtain competitive benefits?
- Are you failing to meet legal obligations?
- Are you operating with limited resources?
If the answer is yes to any of these questions, HR outsourcing might be a good fit for you!