Human Resource Management: An Ally for Small Businesses

HR management can quickly overwhelm small business owners. Many try to handle it alone and end up ignoring daily tasks like payroll, hiring, or employee support. This leads to mistakes that hurt the business over time. A better option is to work with a human resource management company that can manage these tasks with experience and accuracy. Here’s what you should know about HR management and how it can support your business.

The Basics of Human Resources

First, let’s cover the basics of HRM. While each industry is different, there are certain HR functions any company deals with, large or small, including:

• Recruitment and hiring
• Performance management
• Employee training and development
• Employee compensation and benefits
• Expense management
• Time tracking and attendance
• Risk mitigation
• HR data and analytics

Employee satisfaction and retention

What is a Human Resource Manager?

Generally, a human resource manager position may require a bachelor's degree. Some institutions even offer specific HR management degrees and there are many HR certification institutes.

If you’re looking to outsource your HR, you should consider a reputable company that offers industry-specific HR solutions. A good HR strategy begins with your recruitment process and extends through performance management, employee development and ongoing communication.

7 Ways Human Resource Management Benefits Small Businesses

It’s important not to underestimate the impact of HR on your business. While you might think that you can handle things internally, outsourcing your HR may offer a multitude of benefits. Partnering with a HR management expert can help secure top talent, create a stronger onboarding process, improve employee retention, elevate employee benefits, deal with fewer compliance issues and provide access to HR experts. Each of these benefits can help save your business valuable time, energy and money.

1. Secure top talent

Employee recruitment is one of the most time-consuming parts of running a business. Attracting industry-leading talent takes a big commitment. Talent management requires time, energy and finances. Labor statistics show that on average, it takes about 27 days to hire someone, but the best candidates are off the market in 10 days. If your business is more technical or in a specific niche, this timeline changes. Once you find a qualified candidate, you’ll still need to conduct interviews. If you or your HR manager don’t ask the right questions during this process, you might end up hiring the wrong employee. Estimates of the cost of a bad hire vary, and can increase the longer the employee is employed.

Instead of wasting time posting job openings to irrelevant job boards and creating generic job ads, you can work with a professional employment organization (PEO) to help you attract talent. Clear and specific job descriptions are critical for attracting qualified candidates and setting expectations early. By defining your company culture based on your mission, vision and values, you’ll attract the best talent. You will have access to industry-specialized expertise and insights that will help you make informed hiring decisions.

2. Stronger onboarding

A good start can shape an employee’s future at your company. Your onboarding process prepares new hires for their roles and introduces your company culture. One key part of this process is clear communication, which often begins with well-written employee handbooks. These handbooks set expectations, explain policies, and reduce confusion from day one. If onboarding is rushed or disorganized, new hires may feel lost or frustrated. That can lead to poor performance or early turnover. By working with a PEO, you’ll have access to expert guidance and time-tested onboarding steps, including help creating employee handbooks that cover the essentials.

3. Improve employee retention

High employee turnover can cost your business money and make it harder to keep top talent. Unfortunately, many small business owners don’t understand why the turnover is occurring. Strategic HR management companies can help you understand the reasons for turnover with a detailed analysis of compensation in targeted markets. While you might need to increase the salary for certain positions to retain talent, you’ll save money in the long run.

HR solutions from a qualified company can help to boost employee engagement and employee performance. Real-time feedback may uncover hidden or external factors, help find solutions to problems and help your employees feel valued. Strong employee relations can reduce misunderstandings, improve communication, and create a more supportive work environment. By using proven performance management tools, you’ll retain productive employees and create more effective teams. Strategic team building can lead to increased workforce productivity and higher profits. Consistent HR practices play a key role in building strong teams and improving retention. And with continuing education opportunities, you’ll give your employees resources to stay up to date on industry specifications which can lead to deepen their commitment.

4. Access to big-company employee benefits

Small businesses are often limited in their employee benefit packages offerings. When teaming up with the right PEO, your business size no longer limits the benefits you can offer. You’ll receive access to a variety of medical insurance carriers with options for spouses and pets, plus employee perks. This will help keep current employees happy while attracting the industry-leading talent you need to grow.

TriNet works with industry leaders in the benefits category and that includes access to premium benefits that extends beyond medical, to dental, vision, life, disability, retirement, transit and wide range of voluntary benefits.

Your small business can offer more desirable employee benefits. Plus, you can rest assured that TriNet-sponsored medical benefit plans meets Affordable Care Act (ACA) minimum value and benefit requirements. You’ll have expert support and guidance to navigate this complex environment, a plan administrator to accept fiduciary responsibility and peace of mind knowing that your medical plans meet coverage requirements.

5. Fewer compliance issues

A small business, and HR departments, must comply with hundreds of rules and regulations. If you’re not well-versed in this area or don't have a dedicated HR team, compliance becomes a full-time job in itself. You’ll need to ensure your company is in line with all of the applicable rules and regulations that impact employment and employee relationships. This includes everything from hiring, benefits, payroll, and termination. You also need to handle workers compensation, which is required in most states. Even the smallest companies are required to uphold compliance regulations. You must also follow federal, state, and local employment laws, which change often and can be hard to track without expert help.

Even the smallest companies are required to uphold compliance regulations. This can take away valuable time and energy from running and growing your business — especially if you have only a few employees. By outsourcing your HR, your business will have the HR resources to help with the ever-changing employment-related regulations and compliance obligations. Human resource experts will be there to help as your HR person and assist with federal, state and local regulations while helping with certain employment-related inquiries.

6. Access HR anytime, anyplace

HR can be more difficult when you depend on office-based resources to get things done. Teaming up with a PEO, like TriNet, you will have access to a comprehensive HR software platform with self-service and mobile tools that allow you to manage your HR in real time. These tools also provide real-time HR support and improve workforce management, helping you schedule, track, and organize your team more efficiently. This allows you to save time while accessing the insights you need to make better decisions. This allows you to save time while accessing the insights you need to make better decisions.

Your employees will benefit from an HR technology platform as well. They’ll be able to view pay stubs, make changes to tax withholding forms, enroll in benefits, update direct deposit info, request time off and more. This technological integration gives you access to the HR data you need anytime, anyplace.

7. Save time and energy

One of the most beneficial aspects of partnering with an HRM company is the time and energy you can save. By working with a thought leader for your HR requirements, you’ll free up valuable time to grow your business.

The first step in benefiting from HRM is making the decision to do so. According to SHRM, 54% of small businesses manage HR tasks internally. By teaming up with a PEO like TriNet with full service HR solutions, you can focus more on your people management and strategic business objectives. TriNet helps streamline your HR responsibilities by providing complete HR services, including payroll, compliance support, benefits, and access to real-time technology.

Contact us to learn more about how your small business can benefit today.

This communication is for informational purposes only; it is not legal, tax or accounting advice; and is not an offer to sell, buy or procure insurance.

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