Do Small Businesses Really Need HR?


When it comes to Human Resources and small business, the role and value add of Human Resources is often questioned.

Over the years, the role of Human Resources (HR) has been labeled as the hiring and firing component of an organization.  Hiring and firing sounds simple, so why should a small business incur the cost of engaging a Human Resources Professional? In reality, HR is very encompassing, complex, and time consuming.  HR Professionals are required to wear many hats and be knowledgeable in:

  • employment laws
  • human rights
  • organizational behavior and structure
  • health and safety
  • compensation
  • benefits
  • talent acquisition
  • and policy development, to name only a few functions.

The challenge in having a limited understanding of the role of HR is that perception of task simplicity leads many business owners to the do it yourself approach.  By being a self-reliant small business, you may lack the necessary HR comprehension, miss keeping up to date on new laws, standards, and mandatory people-related requirements; potentially leading you to take on risks, you are not aware of.

In consulting a Human Resources Professional, you will receive appropriate guidance on important legislative updates such as, minimum wage increases, overtime compliance, or even health and safety trainings to ensure compliance and minimize risk to your business.  You may even gain some new knowledge on the importance of policy development, and the retention and development of top talent.

Secondly, no matter the size of your organization,you need to continually invest in your people and provide people-centric services, programs and culture, in order to obtain growth. Particularly for small businesses, such elements are key to employee empowerment, engagement, and readiness for future development. By investing early on in HR support, you are subconsciously telling your people: “you are important”, “I am investing in you”, and “I will make certain you have the resources you need to achieve the necessary goals to move our business forward together.”

Most importantly, to be market competitive and stay ahead, an HR professional will provide consultation services, and partner with you to attain, retain and develop your people investment.  So really, what better way is there to support your employees, than by providing the proper resources?  Bottom line, ensuring the necessary Human Resources support is important for small business; it will guarantee your best asset is well taken care of, and it is a step towards building success.

If you are on the fence and undecided on your stance, ask yourself this question, “If you were facing legal challenges, would you hire a Lawyer?”  Most likely, so why chance the do-it-yourself approach when dealing with HR matters?  Make the investment and seek the necessary Human Resources support.

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