Human Resources is an important department of any business, but 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 the employees, it’s not a department small businesses should skimp on.
However, because Human Resources is rife with laws and regulations, many small businesses avoid adding an HR department to their business. Although small businesses might be hesitant to introduce HR basics to their everyday operations, it’s an essential part of running a successful and legally operating business.
To make this transition of adding an HR department easier, in this post we’ve explained the Human Resources basics that all small businesses need to comply with. Let’s dive in!
What Does HR Do in a Small Business?
As we hinted at above, HR is responsible for all employee relations. 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.
As part of a Human Resource professional’s responsibilities, they must manage employee files, create an employee handbook, and display required posters.
Obviously, 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, and an employee medical file.
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.
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:
- NDNA (a non-disclosure agreement) Policies
- Anti-Discrimination Policies
- Compensation and Benefits
- Safety and Security Rights and Responsibilities
- Work Schedules
- Standards of Conduct
- General Employment Information
Its 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 actually 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 to 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.
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 HR-managed training are:
- Quality Training
- Skills Training
- Managerial Training
- Safety Training
- Onboarding Training
- Technical Skills Training
- Compliance Training
- Preventing Sexual Harassment Training
- Discrimination Training
- Business Conduct 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 Human Resources 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 to 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.
Human Resources plays a critical role in any business. Even though yours might be small, you still have the opportunity to ensure you and your employees are in compliance with the laws and regulations, as well as creating a healthy culture. It starts with properly managing employee files, creating an employee handbook, displaying the required posters, and implementing an HR training program.
Now that you understand what types of HR-managed training courses your business should be hosting, it’s time for you to partner with a training-management software company. 360training is your premier destination for HR training for small businesses. Sign up today!