The Three R’s of Small Business HR Management

Posted by on January 15, 2014 in Business Start Up Advice, Hiring [ 0 Comments ]

small business hr managementThe term “headache-inducing” is often methodically paired with descriptions of human resource management in article posts and how-to guides across HR advisory websites. This pessimistic metaphor seems to be even more amplified when speaking to small business human resource management, as HR leaders are often juggling an overabundant mess of rules, regulations, and detailed paperwork to remain compliant on a daily basis. How is one person expected to hire exemplary candidates, manage all new and existing insurance paperwork, and process payroll-all in the confinements of an eight-hour day?

Handling too many issues in too little time can result in headache-inducing problems, and you may find yourself piled beneath a mess or perhaps buried in claims or  lawsuits.  Small business HR managers (or small business owners themselves) can start with three primary principles to unearth themselves from the chaos and clutter. Change your HR policies today with the three R’s of HR:


If you’re looking to hire more employees yet are strapped for time, start by simply making yourself available on social and community-building sites- even when you aren’t in dire need of an immediate hire. You can do this in increments each day through social networking and remaining current with your industry’s community. Regularly update and check-in to your LinkedIn profile, which can be a great source for hiring. With a database of over 200 million career profiles, LinkedIn allows you to easily search, advertise to and recruit new candidates with ease and simplicity. This site also allows for easy first-round evaluations even before initiating communication. Recruiting through other forms of social media is highly debatable, so make sure you use caution and consult with your management team before evaluating a candidate based on their Facebook or Twitter profiles. Remember, based on equal employment opportunity policies, you need to avoid asking questions that don’t pertain to performing the basic functions of the hiring position.

Related: Caution! Social Media Recruiting Isn’t Foolproof 

Required insurance

Workers’ Compensation Insurance is required by law. In short, workers’ compensation is an insurance program established for those who are injured on the job site and provides them with medical and financial benefits due to the loss incurred through the injury. Workers compensation can range from about 30 cents per $100 of payroll for low-risk operations to $10 per $100 of payroll for the higher-risk operations. Regardless of which side of the  spectrum you reside on, purchasing workers’ compensation is required and highly worthwhile in the long run. The receiving end of an injury lawsuit can leave a painful financial mark on your bottom line.


Recruiting top-notch talent and transitioning them into the workplace legally and compliantly is only half of the equation. Retaining employees is the other half. Offering employee benefits goes a long way in keeping your team intact. Carrying health insurance is important in today’s economy, with many of the American workforce facing heavy taxes. As an added bonus, paid time off, company events, and recognition keep your employees motivated. Also,  internal training seminars, mentor coaching, and promoting from within shows you care.

Related: How to Tackle HR’s Biggest Concern: Employee Retention

Jasvier Boyal, the director of HR at The Big Lottery Fund, facilitated an organizational restructuring through a major three-year HR overhaul. After internal employee surveys were conducted, Boyal learned that many of the employees of the corporation admitted to  a concern with the lack of on-the-job training for existing employees. After partnering with a major HR company, the employees had a 360-degree shift in attitudes towards their employer’s investment in their career development and were highly satisfied with the new on-the-job training.

Although a major three-year reconstruction may not be feasible for your small to mid-sized HR department in the immediate future, following these three R’s will streamline your HR chaos.

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