Small Businesses are a pillar to the communities in which they operate. They contribute to the local economy and are a significant contributor to local job creation. Small business owners and leaders are often responsible for functions that are outside their area of expertise. This can create challenges between the balance of cost-effective practices and a thriving, compliant workforce.
Here are 5 Key HR Challenges Small Business Face:
- Limited HR Expertise can lead to gaps in best practices for the employee life cycle, performance management and organizational development. The absence of HR guidance can lead to operational, legal and work culture challenges that may significantly hinder small businesses’ success and sustainability.
- Compliance regulations are a significant challenge for small businesses. Without proper knowledge and implementation practices, small businesses may inadvertently violate employment laws, regulations and industry standards, resulting in fines and potential legal disputes.
- Inconsistent Policies and Procedures occur without clear guidelines and procedures. When leave policies, disciplinary actions, promotions and conditions of employment are applied inconsistently it creates confusion, distrust and in some cases, legal consequences.
- High Employee Turnover occurs when there is poor employee satisfaction and engagement, lack of competitive compensation packages, and poor management practices. High turnover leads to increased recruitment and training costs for small businesses. Turnover can also impact the reputation of the business within its community.
- Leader & Manager Development A Gartner’s survey found that managers have 51% more responsibilities than they feel they can handle. Meanwhile, over 75% of employees say they have placed increased importance on manager support. With the added pressure of increased expectations from employees and senior leadership, managers often fall short and become overwhelmed, leading to burnout.
If your small business is encountering HR issues, you’re not alone. Running a compliant, well-organized business requires resources, time and skill. The world of HR is fast paced with changes in employment laws, top talent expectations and workforce demographics. To prepare your small business for the upcoming year, ask the following questions:
- Do we have updated, accurate job descriptions?
- How are we building a workforce where employees can thrive and feel valued?
- Has our handbook been recently reviewed by an HR professional?
- Do we adhere to our policies and procedures? Are they applied consistently?
- How do we garner employee feedback? What do we do with that feedback?
- Are our managers well trained in employee management and compliance regulations?
- Have we conducted workforce planning and succession planning?
If your small business is facing HR challenges or does not have in-house HR, email jillrevard@revard164.com for a free consultation and discussion on how we can provide tailored HR solutions for your business needs.
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