Many small businesses assume they don’t need HR support, believing it’s only for larger organisations. But even small teams can face significant challenges without proper HR guidance.
Whether it’s compliance issues, recruitment headaches, or managing employee growth, HR plays a crucial role in keeping operations smooth, compliant, and growth focused. Boost Scale to Thrive business adviser Joe Twigg outlines some essential factors to consider.
For small businesses, staying compliant with labour laws can be overwhelming. It’s easy to miss important legal details related to wages, overtime, or leave policies. Without HR oversight, small teams risk violating laws, mishandling employee information, and even facing lawsuits or fines.
HR helps establish clear policies and maintain accurate records to reduce legal risks and maintain employee trust. With proper HR support, small teams can avoid issues like:
Attracting and retaining talent can be a challenge for small teams, especially without a structured hiring process. HR can help by crafting effective job descriptions, managing the hiring process, and ensuring new employees are onboarded efficiently. This frees up time for business owners to focus on core operations, knowing the hiring process is in good hands.
Onboarding new employees effectively is crucial for long-term success. A strong onboarding experience ensures that new hires acclimatise quickly and feel supported from day one. Without proper onboarding, employees are more likely to feel disengaged and leave within the first few months.
HR is also vital for creating a positive work environment. A structured approach to performance reviews, goal setting, and training opportunities can boost employee engagement and development. Employees want to feel that their work is valued, and that there are clear paths for growth within the company.
To keep employees engaged and productive, HR can:
In small teams, where every member plays a critical role, keeping employees engaged is key to success.
HR isn’t just about managing people – it’s also about streamlining administrative tasks like payroll, attendance tracking, and benefits management. Handling these tasks manually increases the risk of errors and consumes valuable time that could be spent on strategic business activities. With HR support, these processes can be automated, ensuring tasks are handled accurately.
HR software or part-time HR consultants can help small businesses manage:
HR may not seem like a priority for small teams, but its benefits go far beyond managing paperwork. From compliance and recruitment to employee development and strategic planning, HR ensures that small businesses operate efficiently, avoid costly mistakes, and build a strong foundation for growth.
Investing in HR support early on whether through consultants, software, or part-time staff can pay off, especially as your team grows.
About the author
With over 12 years' experience of running a diverse business, Joe Twigg has developed a knowledge base across operations and sales, mergers, acquisitions and integrations, transformation and change projects and continuous improvement.
As a Boost business adviser, Joe advises businesses on Boost's Scale to Thrive programme. He helps businesses recognise and remove obstacles that may stifle future growth and enjoys guiding businesses to help maximise their potential through unpicking what makes them special and understanding their challenges.
If you’re looking to grow, scale or start your business, use Boost; Lancashire’s Business Growth Hub. We offer a range of funded business support services. Call our Business Support Helpdesk on 0800 488 0057 to find out more or complete our enquiry form.
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