What HR Training Does Your Small Business Need?

Human Resources (HR) is an important department of any business. However, the HR needs of a small business are different than the needs of a larger corporation. Since HR manages the hiring, performance management, and training of employees, it’s not a department small business should ignore. 

In this blog, to make this transition of adding an HR department easier, we’ll explain the Human Resources basics that all small businesses need to comply with and why it's important. 

What Is HR? 

As we hinted at above, HR is responsible for all employee relations, making it a crucial role across all businesses. In a small business setting, HR needs to manage the hiring and performance management of employees, as well as their development, training, and safety and wellness. 

Human Resources is also responsible for overseeing the pay and benefits for all employees, something that impacts every employee. 

Finally, an HR department should manage communication between employees and management, especially during times of disagreements or large business changes. 

Moreover, as part of a Human Resource professional’s responsibilities, they must manage employee files, create an employee handbook, and display required posters. 

Essential HR Skills for Small Business Owners 

HR sounds pretty important, right? That's because it is. HR employees wear many hats that are essential for any business. Let’s take a closer look at essential HR skills for small business owners. 

EMPLOYEE FILES 

Employee files contain sensitive and confidential information, so HR needs to securely manage them. Employee files should include an I-9 file, a general employee file, an employee medical file, and more. 

While the government requires the I-9 file, employee general and medical files are for your own benefit. Hopefully, the HR professionals won’t have to go into employee medical files often, but the general files will include payroll details, disciplinary actions, and training verifications, so they will use that group of files often. 

EMPLOYEE HANDBOOK

An employee handbook is a resource for employees to refer to so they understand what’s expected of them. A handbook also serves a dual purpose, and you can use it on your end to protect the business in the case of an employee vs. business dispute. 

The employee handbook can be simple, but it should at least include:

1. NDNA (a non-disclosure agreement) Policies
2. Anti-Discrimination Policies
3. Compensation and Benefits
4. Safety and Security Rights and Responsibilities
5. Work Schedules
6. Standards of Conduct
7. General Employment Information

It is HR’s responsibility to create and update the employee handbook as needed. The Human Resources team also needs to ensure that all team members have received, read, and understood the employee handbook. 

DISPLAY REQUIRED POSTERS

Although this sounds like a simple task, it can be extremely important depending on the industry you’re in. While not all businesses are required to post signs that explain the laws relevant to their industry, the ones that are required need to comply to keep up with legal standards. The HR department can find all the necessary posters or engage a third party that specializes in providing posters relevant to specific industries.

Common HR Challenges Faced by Small Businesses

Small businesses often encounter a variety of HR challenges, particularly because they may not have a dedicated HR department or extensive resources to manage these issues effectively. 

Some common HR challenges faced by small businesses include: 

1. Recruitment and Hiring: Small businesses often struggle to attract and retain top talent, especially when competing with larger companies that can offer more attractive salaries and benefits packages.
2. Employee Retention: Keeping skilled employees can be difficult due to limited career advancement opportunities and financial constraints on raising salaries or providing substantial benefits.
3. Compliance with Labor Laws: Navigating the complex web of local, state, and federal employment laws can be daunting. Small businesses may lack the expertise to handle compliance issues, risking penalties and legal issues.
4. Training and Development: Providing ongoing training and development opportunities is crucial for employee growth and satisfaction, but it can be costly and time-consuming for small businesses.
5. Managing Employee Performance: Developing effective performance management systems that are fair and transparent can be challenging. Small businesses may struggle with balancing the need for formal performance evaluations with the informal nature of their business environment.
6. Handling HR Administration: Tasks such as payroll, benefits administration, and record-keeping can be overwhelming without dedicated HR staff.
7. Building a Positive Workplace Culture: Establishing and maintaining a positive company culture that fosters employee engagement and productivity is crucial, but it can be challenging for small businesses dealing with diverse personalities and limited resources.
8. Adapting to Change: Small businesses must be agile and adapt quickly to changes in the market, technology, or workforce demographics, which can be a significant challenge without strategic HR planning.
9. Health and Safety: Ensuring workplace safety and health standards can be particularly challenging for small businesses, especially those in industries with higher risks.
10. Employee Benefits: Designing an attractive benefits package to compete with larger firms while staying within budget constraints is a common struggle for small businesses. 

Addressing these challenges typically involves strategic planning, effective communication, and sometimes seeking external expertise to ensure that the business remains competitive and compliant.

HR Training for Small Businesses 

Besides the administrative side of Human Resources, one of their other largest responsibilities is employee training. Depending on your industry, you may have specific training courses that your employees may need to complete, but you should supplement this industry-specific training with general education courses. 

Examples of different types of HR training for small businesses are: 

• Quality Training
• Skills Training
• Managerial Training
• Safety Training
• Onboarding Training
• Technical Skills Training
• Compliance Training
• Preventing Sexual Harassment Training
• Discrimination Training
• Business Ethics Training 

While that may seem like a lot of training, keep in mind that every small business is at a different stage of its development. This means that if you’re a team of three, your HR manager probably doesn’t need to provide managerial training. Of course, if you’ve hired a qualified HR professional, they will advise you on the best types of training programs to implement. 

It’s important to note that training programs are always updating their content to apply current standards and best practices. This means your small business should include developmental and continuing education training as part of its curriculum. Additionally, as your business changes, so should your training programs. 

The Importance of HR Training for Small Businesses 

It’s clear HR training is important for small businesses, serving as a crucial investment that can significantly enhance organizational effectiveness and success. Proper HR training improves recruitment and retention efforts by teaching effective strategies to attract, select, and keep top talent, which is essential for a business’s growth and stability. 

It also ensures compliance with employment laws and regulations, helping to prevent potential legal issues that could be costly and detrimental. 

Moreover, HR training enhances employee performance by educating on performance management techniques that maximize productivity and manage issues effectively. This includes setting clear expectations and providing constructive feedback. 

Additionally, HR training fosters a positive workplace culture by incorporating training on workplace ethics, communication skills, and conflict resolution, which are critical for maintaining a healthy work environment. Thus, for small businesses, investing in HR training is not just about fulfilling a functional requirement; it's about building a strong foundation that supports all aspects of the business operations. 

How to Choose the Right HR Training for Your Business

HR plays a critical role in any business. Even though yours might be small, you should still ensure you and your employees comply with the laws and regulations, as well as create a healthy culture. 

This starts with properly managing employee files, creating an employee handbook, displaying the required posters, and implementing an HR training program. 

Now that you understand the types of HR training available for small businesses, it’s time for you to partner with a training-management education provider— 360training. 360training is your premier destination for HR training for small businesses. We offer a full suite of HR compliance courses, including state-specific harassment training. 

Ready to teach your employees to recognize harassment, identify discrimination, and generally avoid contributing to a hostile workplace? Sign up today!