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4 Compelling Reasons Why Your Small Business Needs Professional HR Services

October 12, 2023
2 min read

It’s been said that a business is only as good as its people. This aphorism speaks volumes to the critical importance of human resources (HR) in the successful navigation of the business landscape. Irrespective of the size of the firm, an effective HR function is a non-negotiable prerequisite for achieving lofty business objectives. However, it appears that in smaller business settings, there is often a tendency to underrate the need for professional HR services. This is a grave oversight, akin to ignoring the chessboard while focusing on the chess pieces.

In the grand scheme of things, a firm's personnel is the lifeblood of its operations. They are the builders, the thinkers, and the executors of the firm's vision. But what good are these builders and thinkers if the necessary support system to optimize their efforts is lacking? Herein lies the raison d'être of professional HR services. Let’s delve into the compelling reasons why your small business should not overlook this need.

  • Firstly, inconsistencies in employment law compliance can have far-reaching effects on a small business. The legal framework governing employment activities is a jungle of complexity, with no allowances made for the size of the business. Failure to navigate this jungle professionally can result in hefty fines, legal battles, or worse, irreparable damage to the company's reputation. Professional HR services bring to the table an in-depth knowledge of labor laws, ensuring that your small business remains on the right side of the law.
  • Secondly, the Pareto Principle, or the 80/20 rule, suggests that 80% of results come from 20% of efforts. Thus, efficiency is key. In a small business setting, where resources are often limited, efficiency becomes even more crucial. An HR professional is skilled in designing systems, policies, and procedures that foster efficiency. From payroll management to talent acquisition, HR services can streamline processes, allowing you to focus on core business activities.
  • Thirdly, the concept of employee engagement cannot be overstated. A Gallup poll showed that engaged employees are 21% more productive. HR professionals understand the granular details of creating an engaging work environment. They can help craft effective employee development plans, create an inclusive culture, and manage conflict. Employees who feel valued and engaged will invariably contribute more to their companies, which in turn, boosts business performance.
  • Lastly, consider the notion of scalability. As your small business grows, it will inevitably face an increasing number of HR-related challenges. Having professional HR services from the onset ensures that growth does not become a bottleneck but a stepping stone to greater heights. HR professionals can help manage change, maintain organizational culture, and ensure the efficient integration of new employees.

Undoubtedly, the absence of professional HR services may not have immediate catastrophic effects on your small business. However, it’s akin to playing a game of chess while ignoring the chessboard. The pieces may be significant, but the board on which they are placed holds the game together. Similarly, your personnel is vital, but without effective HR, they amount to an orchestra without a conductor.

In essence, your small business needs professional HR services to navigate the often complex legal terrain, improve efficiency, foster employee engagement, and smoothly manage growth. If your small business currently lacks these services, it's high time you made that strategic move. After all, as aptly put by Dr. W. Edwards Deming, "The first step in strategic planning is to predict or create the future." Let professional HR services be the crystal ball that sets your small business on the path to a promising future.

TAGS
HR
Small-Business
Efficiency

Related Questions

The role of HR in a small business includes ensuring compliance with employment laws, fostering efficiency, promoting employee engagement, and managing growth.

Potential consequences include non-compliance with employment laws, inefficiency, low employee engagement, and difficulty managing growth.

The Pareto Principle, also known as the 80/20 rule, suggests that 80% of results come from 20% of efforts.

HR services can improve efficiency by designing systems, policies, and procedures that streamline processes such as payroll management and talent acquisition.

Employee engagement is important because engaged employees are more productive. They feel valued and are more likely to contribute more to their companies, boosting business performance.

HR services can help a small business manage growth by managing change, maintaining organizational culture, and ensuring the efficient integration of new employees.

Dr. W. Edwards Deming was an American engineer, statistician, professor, author, and management consultant. He is known for his work in the field of quality management and his quote is used in the context of strategic planning.

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