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The Society for Human Resource Management recommends that companies hire an HR staffer as they reach 15 employees. Many of these small businesses don’t have the resources to hire an employee dedicated to HR. As, annual wages for HR generalists range from 35k to over 100k.
For the many that fall in the category of not having an HR staffer, the absence of a staffer does not lessen your liability or exposure. But, there are cost effective ways to boost your company’s HR administration and compliance.
Here are some ways you can advance your company's HR performance.
Lean on the experts for the "big" issues. Most managers can address basic HR matters like performance issues and time off. But, you need to bring in an expert to resolve more sensitive issues such as sexual harassment and discrimination.
Study the law. Employment laws vary by state. They often change, and different rules apply depending on company size. Look to your industry association for regulatory updates, hire HR consultant to guide you through the maze of regulatory requirements, or hire an attorney that focuses on employment law.
Use HR focused software. Automate HR functions of payroll & benefits to keep them efficient and consistent.
Train for success. Equip your managers for success. For example, conduct training on conflict resolution, leadership, customer service, and specific workplace situations such as sexual harassment and hostile work environment. Educating your managers in specific HR topics can greatly reduce HR incidents.
NOTE: HR can have a greater impact on small and mid-sized businesses than it does on large ones, as costly HR mistakes often have a comparatively bigger impact on smaller companies. For instance, HR Morning states that "age, disability, national origin, race, religious and sex discrimination claims that are settled, the average total cost of those claims came to $125,000".1
Whether your business has an HR department or someone managing HR in addition to their other tasks, give HR the time and resources it deserves.
1.Schappel, Christian. “What Will That next Discrimination Charge Cost You?” HR Morning, 11 Nov. 2015,