HR for Small Business: Building an Effective HR Department

 

 

 

HR for Small Businesses

Building an Effective HR Department for Your Small Business

Big or small, every company should have a well-functioning Human Resources Department, because the essential components that make up an effective HR Department are pivotal to the overall operational and financial success of every business, small, mid-sized, or large. 

At the core foundation of an HR Department is the purpose of HR establishing solid internal business relationships amongst each employee working within the company, and supporting that objectives are several essential components that are paramount in establishing in the beginning of building an HR department. 

The following strategies have shown to be highly effective for small businesses striving for business growth and success. These strategies are only a partial listing of the many requirements small businesses must have in place in order to ensure they are managing their HR function in a compliant and efficient manner. Refer to these strategies as general guidelines only. 

State and Federal Compliance Awareness

• Every business will be subject to at least one or more state and/or federal employment regulation.

• To identify and understand which state and federal employment regulations may apply to your business, start with knowing how many total employees are working for your business and in which state(s), and understand your respective business industry’s requirements.

• For a partial listing of state related employment regulations, visit your state’s workforce commission website. For instance, Texas employers should visit http://www.twc.state.tx.us/. For a partial listing of federal employment regulations, visit www.dol.gov.

Develop Workplace Policies & Procedures

• Setting expectations for employees through policies and procedures is pivotal in your company’s ability to achieve and sustain productivity and profitability.

• Begin this process of policy and procedure development by identifying the state and federal employment regulation requirements for your business, which are generally based upon the total number of employees you have employed and in which state(s), and which industry your business is in.

• Communicate these policies and procedures to your employees, review them regularly, and update as needed.

Establish a Record keeping System

• HR record keeping includes, but is not limited to, maintaining a personnel file on each employee, a Form I-9, and ensuring that confidential, sensitive and medical related information is maintained separate and apart from the personnel file.

•  Certain employment related records must be retained by the employer for a certain period of  time, and more detailed information regarding record retention requirements can be found through your local state’s workforce commission and/or through the U.S. Department of Labor’s website.  

Develop a Payroll Administration Process

• Establish a payroll schedule for your employees, such biweekly (i.e. every other Friday) or semi-monthly (1^st and 15^th of every month). Each pay date should cover a precise payroll period, and payroll checks must be issued timely and correctly at all times.

• Ensure your federal payroll tax filing and payment obligations are met on a timely basis and are correct at all times, as well as your respective state’s payroll tax filing and payment obligations.

• Enlisting the support of a payroll processing professional either through outsourcing of your payroll function, or through the help of an independent contractor payroll professional has proven to be an effective strategy for many small businesses. 

Work with an HR Specialist

• Working with an experienced HR professional with broad, in-depth hands on knowledge and experience in the areas of HR compliance, administration, training & development, compensation & benefits, recruiting & staffing, and employee performance management.

• Enlisting the support of an HR Specialist either through outsourcing of your HR department or through the services of an HR consultant independent contractor, can bring invaluable return on investment for your business, help minimize your company’s HR compliance risk exposure, and build internal efficiencies to support your company’s growth and success.

For questions regarding Kandor Group’s HR for Small Business: Building an Effective HR Department for Your Small Business, please contact us at info@kandorgp.com. 

Published by Kandor Group, Inc.
All Rights Reserved. February 2015