Global HR
December 12, 2023

How to Leverage HR for Small Businesses

HR for small businesses plays a vital role in ensuring workforce success. From ensuring compliance with labor laws to streamlining payroll, there's no shortage of benefits that HR support for small businesses can bring.

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HR for small businesses is responsible for managing a company's workforce to achieve its objectives. Big and medium-sized companies may have the financial muscles to build fully-fledged HR departments or hire in-house HR professionals. However, small business owners are better off outsourcing HR services from reputable employers of records (EOR) to slash costs.

Importance of HR for Small Businesses

As your business grows, work becomes overwhelming. You may hardly have enough time to manage employees and run other day-to-day business activities. HR  support for small businesses helps you manage the whole employment lifecycle.

This important service takes over employee management and administrative tasks and ensures that your business is compliant with employment laws and regulations. That leaves you all the time to focus on business growth and development.

9 Reasons to Invest in HR for Small Businesses

Below is a rundown of 9 top reasons why employers should consider investing in HR support for small businesses.

  1. Enhanced Employee Productivity

According to Gallup, engaged employees are more productive, while disengaged ones are more likely to seek opportunities elsewhere. HR for small businesses UK helps employers solve engagement and productivity issues.

They design and document strategies, procedures, and employee growth & development policies. They also set up a performance management system to keep employees focused on the company's mission and goals, which is vital for individual and team performance.

  1. Recruitment and Talent Acquisition

One of the top functions of HR for small businesses is to attract, hire, and retain the best job candidates for the company. Thus, they are responsible for laying down quality recruitment and retention policies & practices to ensure effective recruitment, increase employee satisfaction, and improve retention, including:

  • Preparing job descriptions
  • Creating a hiring and recruitment management framework
  • Completing compliance paperwork, like work eligibility documents, employment contracts, etc
  • Designing and implementing onboarding and offboarding processes
  • Crafting hiring and retention policies and procedures.
  • Laying employee satisfaction and engagement strategies
  1. Legal Compliance and Risk Mitigation

Keeping up with employment law is important to ensure compliance and avoid legal risks. HR for Small Businesses UK is responsible for tracking developments in local employment laws and other legal requirements to ensure that your company is fully compliant.

That helps employers avoid expensive non-compliance fines, penalties, lawsuits, and reputational damage. For instance, an international employer of record (EOR) helps your company remain compliant with global employment regulations and local laws if you hire employees from multiple countries.

  1. Employee Training and Development

HR support for small businesses plays a central role in your team's growth and development. They are responsible for designing training and skill development programs, preparing an employee handbook, setting performance expectations, and more.

That helps foster continuous learning through on-the-job training, workplace training, workshops, conferences, and professional/career development programs. These help employees develop the skills and competencies they need to perform at their best, resulting in:

  • Increased employee motivation, engagement, and retention
  • Preparing employees for internal promotion
  • Improved performance and productivity
  • Internal skill development, which reduces the cost of external recruitment
talk around hr for small businesses
  1. Employee Satisfaction and Retention

HR for small businesses is responsible for creating a positive work environment and developing a company culture that attracts and retains top talent. They lay strategies to drive employee satisfaction and retention, including:

  • Offering ongoing career development opportunities
  • Offering an attractive compensation package
  • Setting clear employee performance expectations

That helps companies save time and money given that the cost of replacing an employee can go up to 2 times their annual salary.

  1. Performance Management

HR support for small businesses is responsible for employee performance management. That entails setting up a system of performance management and aligning individual goals with business objectives to ensure optimum work output. 

That's achieved through:

  • Setting clear performance expectations.
  • Carrying out regular performance reviews.
  • Having an effective performance feedback mechanism.
  • Setting key performance indicators (KPIs) to measure the team's effectiveness.
  • Implementing a promotion framework.
  • Inspiring the right team behaviors to boost performance.
  • Laying strategies for assigning and rewarding extra work.
  • Implementing disciplinary and termination procedures.
  1. Workplace Diversity and Inclusion

According to CNBC, about 80% of employees prefer working in organizations that value diversity, equity, and inclusion (DEI). That makes DEI an important factor in the talent acquisition process. 

HR for mall businesses UK helps promote diversity and inclusion in small businesses to build an inclusive workplace culture. For instance, businesses can work with a legal employer of records (EOR) to promote global employment by hiring employees from multiple countries, different socio-economic backgrounds, and cultural backgrounds.

  1. Employee Wellness Programs

Building a healthy workforce means less absenteeism, lower healthcare insurance premiums, and fewer mental health issues. HR support for small businesses helps put in place effective employee wellness initiatives to offer physical, mental, and work-life balance support to workers, including:

  • Flexible working schedules
  • Remote working arrangements
  • Financial education
  • Parent coaching and support
  • Fitness classes and de-stressing activities
  1. Cost Saving and Efficiency

HR software for small businesses uk automates time-consuming HR tasks, helping companies save time on repetitive admin tasks. It also automates time tracking and stores employees' data in one place, making it hassle-free to prepare payroll.

Streamlined processes result in cost-effective operations, saving companies tons of time and money in the long run.

Playroll's HR Support for Small Businesses

HR functions are numerous, and managing HR on your own can be tedious and time-consuming as your business grows. By outsourcing HR for small businesses to a reputable EOR services provider, small business owners can save time and money and ensure compliance with relevant employment laws and regulations.

Playroll's HR software for small businesses uk helps business owners seamlessly manage the whole employment cycle. Our HR support and payroll management platform offers the EOR expertise and global payroll solutions to help you build a compliant global team. Request a demo and sign up to streamline your payroll with ease at Playroll.com! 

HR for small businesses is responsible for managing a company's workforce to achieve its objectives. Big and medium-sized companies may have the financial muscles to build fully-fledged HR departments or hire in-house HR professionals. However, small business owners are better off outsourcing HR services from reputable employers of records (EOR) to slash costs.

Importance of HR for Small Businesses

As your business grows, work becomes overwhelming. You may hardly have enough time to manage employees and run other day-to-day business activities. HR  support for small businesses helps you manage the whole employment lifecycle.

This important service takes over employee management and administrative tasks and ensures that your business is compliant with employment laws and regulations. That leaves you all the time to focus on business growth and development.

9 Reasons to Invest in HR for Small Businesses

Below is a rundown of 9 top reasons why employers should consider investing in HR support for small businesses.

  1. Enhanced Employee Productivity

According to Gallup, engaged employees are more productive, while disengaged ones are more likely to seek opportunities elsewhere. HR for small businesses UK helps employers solve engagement and productivity issues.

They design and document strategies, procedures, and employee growth & development policies. They also set up a performance management system to keep employees focused on the company's mission and goals, which is vital for individual and team performance.

  1. Recruitment and Talent Acquisition

One of the top functions of HR for small businesses is to attract, hire, and retain the best job candidates for the company. Thus, they are responsible for laying down quality recruitment and retention policies & practices to ensure effective recruitment, increase employee satisfaction, and improve retention, including:

  • Preparing job descriptions
  • Creating a hiring and recruitment management framework
  • Completing compliance paperwork, like work eligibility documents, employment contracts, etc
  • Designing and implementing onboarding and offboarding processes
  • Crafting hiring and retention policies and procedures.
  • Laying employee satisfaction and engagement strategies
  1. Legal Compliance and Risk Mitigation

Keeping up with employment law is important to ensure compliance and avoid legal risks. HR for Small Businesses UK is responsible for tracking developments in local employment laws and other legal requirements to ensure that your company is fully compliant.

That helps employers avoid expensive non-compliance fines, penalties, lawsuits, and reputational damage. For instance, an international employer of record (EOR) helps your company remain compliant with global employment regulations and local laws if you hire employees from multiple countries.

  1. Employee Training and Development

HR support for small businesses plays a central role in your team's growth and development. They are responsible for designing training and skill development programs, preparing an employee handbook, setting performance expectations, and more.

That helps foster continuous learning through on-the-job training, workplace training, workshops, conferences, and professional/career development programs. These help employees develop the skills and competencies they need to perform at their best, resulting in:

  • Increased employee motivation, engagement, and retention
  • Preparing employees for internal promotion
  • Improved performance and productivity
  • Internal skill development, which reduces the cost of external recruitment
talk around hr for small businesses
  1. Employee Satisfaction and Retention

HR for small businesses is responsible for creating a positive work environment and developing a company culture that attracts and retains top talent. They lay strategies to drive employee satisfaction and retention, including:

  • Offering ongoing career development opportunities
  • Offering an attractive compensation package
  • Setting clear employee performance expectations

That helps companies save time and money given that the cost of replacing an employee can go up to 2 times their annual salary.

  1. Performance Management

HR support for small businesses is responsible for employee performance management. That entails setting up a system of performance management and aligning individual goals with business objectives to ensure optimum work output. 

That's achieved through:

  • Setting clear performance expectations.
  • Carrying out regular performance reviews.
  • Having an effective performance feedback mechanism.
  • Setting key performance indicators (KPIs) to measure the team's effectiveness.
  • Implementing a promotion framework.
  • Inspiring the right team behaviors to boost performance.
  • Laying strategies for assigning and rewarding extra work.
  • Implementing disciplinary and termination procedures.
  1. Workplace Diversity and Inclusion

According to CNBC, about 80% of employees prefer working in organizations that value diversity, equity, and inclusion (DEI). That makes DEI an important factor in the talent acquisition process. 

HR for mall businesses UK helps promote diversity and inclusion in small businesses to build an inclusive workplace culture. For instance, businesses can work with a legal employer of records (EOR) to promote global employment by hiring employees from multiple countries, different socio-economic backgrounds, and cultural backgrounds.

  1. Employee Wellness Programs

Building a healthy workforce means less absenteeism, lower healthcare insurance premiums, and fewer mental health issues. HR support for small businesses helps put in place effective employee wellness initiatives to offer physical, mental, and work-life balance support to workers, including:

  • Flexible working schedules
  • Remote working arrangements
  • Financial education
  • Parent coaching and support
  • Fitness classes and de-stressing activities
  1. Cost Saving and Efficiency

HR software for small businesses uk automates time-consuming HR tasks, helping companies save time on repetitive admin tasks. It also automates time tracking and stores employees' data in one place, making it hassle-free to prepare payroll.

Streamlined processes result in cost-effective operations, saving companies tons of time and money in the long run.

Playroll's HR Support for Small Businesses

HR functions are numerous, and managing HR on your own can be tedious and time-consuming as your business grows. By outsourcing HR for small businesses to a reputable EOR services provider, small business owners can save time and money and ensure compliance with relevant employment laws and regulations.

Playroll's HR software for small businesses uk helps business owners seamlessly manage the whole employment cycle. Our HR support and payroll management platform offers the EOR expertise and global payroll solutions to help you build a compliant global team. Request a demo and sign up to streamline your payroll with ease at Playroll.com! 

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