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Does a Small Business Need HR?

By Dan Darabaris


As a small business owner, you’re probably used to wearing many hats and juggling various responsibilities – manager, sales, bookkeeper, etc. If you’re handling HR activities as well, you may want to rethink your strategy of doing it all on your own. While it may seem like an unnecessary expense for a small business, having a human resources professional on your team helps to foster growth, ensure compliance, and nurture a positive work environment that can help you attract and retain the right employees to boost productivity and profits. If you are concerned about the cost, hiring a full-time HR pro may not be necessary for a small business. You can outsource all of your HR needs or simply retain a professional on an as-needed project basis

Why Small Businesses Need HR Help and How It Can Contribute to Long-Term Success


Talent Acquisition and Retention

Attracting and retaining the right workforce is critical for any business, regardless of its size. HR professionals have the skills to develop recruitment strategies, conduct interviews, and assess candidates to find the right fit for your company’s needs. Plus, they can create comprehensive onboarding processes to bolster employee engagement and satisfaction, increasing the likelihood of retaining those workers long term.

Compliance with Employment Laws

Are you knowledgeable on all the compliance requirements your business must adhere to? Navigating employment laws can be daunting, especially for small business owners who probably don’t have an HR or legal background. HR professionals stay up to date on the ever-evolving labor laws, ensuring that your business remains compliant in areas such as hiring, payroll, employment contracts, workplace safety, fair compensation, and even filing requirements. Having them on your team can minimize costly fines and potential legal actions.

Employee Training, Development, and Performance Management

Investing in the growth and development of your employees is essential for building a successful business. HR professionals can design training programs, devise career development offerings, provide guidance on career advancement opportunities, and oversee performance reviews. By having an HR pro help foster a culture of continuous learning, you can improve employee productivity, engagement, and overall performance.

Employee Relations and Conflict Resolution

No matter how happy your workplace may be, conflicts and disputes may arise. HR professionals are trained to objectively mediate conflicts, address grievances, conduct investigation, and promote effective communication among employees. A neutral HR professional can help you maintain a positive work environment and prevent potential disruptions that could impact your business’s bottom line.

Policy Development and Implementation

Having clear policies and procedures in place is important for ensuring consistency and fairness. HR professionals can develop employee handbooks that outline guidelines for expected behavior, attendance, vacation time, leave policies, personal internet use, performance assessments, consequences for violating policies, and more. They also play a key role in implementing such policies and ensuring that they are effectively communicated to all of your employees.

Benefits Administration and Employee Well-Being

Happy and healthy employees are vital to a business’s success. HR professionals can design and administer employee benefits packages, such as health insurance, retirement plans, and wellness programs. They can also develop well-being initiatives that focus on work-life balance and mental health. 

Although a small business may have limited resources, investing in HR support yields valuable short and long term benefits. By outsourcing HR functions, business owners can spend more time on building their business, trust they are compliant with employment laws, and create a more positive work environment to drive overall organizational success.

The right level of HR engagement is YOUR choice to make.

From on-demand to year-long support, Monarch helps manage your people, reduce your administrative workload, and free up time so you can focus on business success.

Call or email us to arrange a complimentary consult.

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