Small Business Brief


7 HR Tips That Will Transform the Way You Run Your Small Business

If you’re running a small business or a startup, you may not have even thought about human resources yet.

You’re not alone. Many businesses don’t even have an HR department, but it is a necessary investment for the sake of employee well-being.

Studies show that happy employees are 12% more productive on average.

So, let’s dive into some easy human resource tips to improve your small business.

7 Human Resource Tips for Your Small Business

Whether you are adding a department or taking on the role for yourself, there is a lot to know, but you can’t do it all.

Every small business faces challenges, and HR is not an area with room for error. Follow these tips and get your business on the right track for your employees, as well as your profits.

1. Outsource

Let’s be honest, for many startups, there is a large learning curve that comes with establishing and maintaining growth. And unfortunately, you can’t do it alone.

For small businesses, it can often make more sense to call in the services of an established HR business. There are plenty of resources to use for small businesses and startups to get the information and work that they need.

Organizations like Alternative HRD offer HR management services, risk assessments, employee handbooks, and plenty of other resources for your small business.

2. Establish a Mode of Healthy Feedback

Take some time to set up a feedback process for your employees. Feedback is very important for the growth of your company, as it can help your employees become more efficient and happier on the job.

It is very important to take both positive and negative feedback seriously. If you know what needs improvement as well as what is working well, you take the necessary steps to keep your business running at its full potential.

3. Give Feedback

Giving feedback to your employees is just as important as receiving it. A cup of coffee, a surprise treat, or even a simple “congratulations” will go a long way to the success of your employees and the company.

Your most important job as a small business owner is to coach your employees. Research the benefits of executive coaching if you’re interested in learning more.

4. Know the Law

One of HR’s most important responsibilities is protecting the company legally. Knowing and practicing the laws for safety, paid time off, hiring practices, and much more are critical to a small company’s success.

5. Documentation is Key

Keep everything, within reason, documented. From staff files to incident reports, documenting everything will ensure fewer hiccups in the future.

When it comes time to pay taxes or report to OSHA, it is best to have everything you need well-organized.

6. State Your Policies Clearly

From harassment to punctuality, it is best to keep every employee in the loop about company policy. This is not an issue to overlook or push off into the future. This is one of the very first steps when employees are brought into a company.

7. Use Technology

With so many resources at your fingertips, there is no rational reason not to use them. A filing cabinet and a few spreadsheets will only get you so far.

The important thing to remember is that the tools should focus more heavily on catering to employee needs vs purely fulfilling business requirements.

Next Steps

While an HR department is not a legal requirement, it is an obvious structural improvement for a company of any size.

Now that you’ve heard some human resource tips, get the resources you need to grow your company and keep your employees happy!