While the implementation of Human Resources can be major step for most small businesses, it can reap handsome rewards if done properly. HR performs a number of crucial functions, including the recruitment of new staff, helping business owners avoid legal problems, and enhancing employee retention. Whether you intend to develop an in-house HR department or outsource, below are some ways HR can make your organization a more productive one.
HR Helps with Labor Laws
Labor laws continue to increase in complexity, and the larger a business becomes, the more pitfalls they have to watch out for. This is especially true if a company becomes large enough to expand overseas, where foreign laws may be alien to what they’re familiar with at home. Few business owners can keep up with all these regulations, as they are busy running the day-to-day operations of the firm. Human resource managers are experts in labor law. They are familiar with all the nuances of the Fair Labor Standards Act, and can help business owners avoid problems that could become very costly.
HR helps You Hire the Best
Any employer that wants to remain competitive, especially over the long term, must come up with a compensation plan that will attract A-level employees. These are the employees who are not only educated, experienced and qualified, but they also possess unique skills or talent that is uncommon in their industries. These employees can be extremely difficult to find, but a good HR manager will have access to them. They will be familiar with the top colleges, associations and recruitment websites where these talented prospects can be found. Better still, good HR managers know how to attract and persuade A-level candidates to join your organization rather than that of your competitors.
Human Resources can Help You Retain the Top Talent
Any business which has a high employee turnover has a serious problem, and if it is not resolved the company may ultimately go under. Having a good HR manager on your team will go a long ways to ensure this problem doesn’t occur. The key to retaining good employees is to keep them motivated, encouraged and challenged. Research shows that employees who are motivated on average perform 20 percent higher than those who are not. Employees who are motivated are also much less likely to pack their bags and leave.
How long your employees stay and how well they perform is directly correlated to how well they are paid and treated. This is in turn will influence the company sales and customer satisfaction. HR managers are in a unique position to encourage employees to be open about things that upset or concern them, which can help to alleviate tension and frustration which can result in decreased performance and high turnover. HR is also adept in developing incentives to keep employees working at their best.
As you can see, HR is indispensable, and when it is implemented correctly, they can bring tremendous benefits which will make a company more productive as well as efficient.