At GreenGrowth CPAs, we have many small business clients ask what HR services they are required to provide for their team. However, according to the U.S. Chamber of Commerce, there is no mandate for small businesses to have an HR representative or team in place. While it can be challenging to juggle both operations and people management, we have some tips to make it less of a burden.
If you have the funds, outsourcing your HR is the easiest fix. This is not an option for everyone- especially new and small businesses. Let’s walk through some HR processes that you should implement to provide fair and compliant employment for your teams:
Recruitment and Hiring
Develop a process that encourages consistent recruiting and hiring practices. Create detailed job descriptions, and spend the time to construct and ask prescreen questions. This helps funnel the best candidates to the interview stage. Also be sure to implement background checks to protect yourself and your team.
Develop an onboarding process that is learning focused, supportive, and welcoming. Meet with your new employees regularly to confirm they are the right fit to help grow the business.
Performance Management for Small Businesses
Develop a process for managing employee performance. Start by creating a schedule to conduct regular performance evaluations. These evaluations can assist in goal setting and support a culture that encourages constructive feedback.
Training and Development
Training and development is vital to your growing team. Provide the time to train, and encourage your team to create and update standard operating procedures as the business grows. For this purpose, create a development plan that outlines each person’s professional growth within the company and provide clear opportunities for advancement.
Compensation and Benefits
One of HR’s main functions is payroll. Develop a process for managing employee compensation and benefits; including setting salaries, managing benefits enrollment, and administering payroll. Payroll software can save you time, avoid crucial mistakes, and focus more on the business.
Disciplinary and Termination Practices for Small Businesses
Develop a process for managing disciplinary actions and terminations; including verbal warnings, written warnings, and termination procedures. This can be one of the toughest HR areas for business owners. When you need to terminate an employee, make sure you know the laws.
Employee File Management
Develop a process for managing employee files; including storing and securing confidential employee records (while remembering to comply with data protection laws). Depending on the state, employees have rights to access their own personnel files. Legal obligations may impact your employee file management process, and it would be wise to research this topic as each state has different laws.
Develop a process for staying up-to-date on employment laws and regulations, while also ensuring you are in compliance with all applicable laws and regulations. Resources like the U.S. Small Business Administration will help you determine your legal responsibilities to maintain compliance with state and federal business laws.
Small Business HR Compliance Makes a Big Difference
By implementing these HR processes, you can help ensure that your small business is effectively managing its employees while also complying with employment laws and regulations.
If you have any questions about small business operating practices, reach out to the GreenGrowth CPAs team today! Our team provides a wide range of services, industry expertise, and partnerships to scale your small business.