Managing employees can be tough and time-consuming, especially for small businesses with limited resources. That’s where human resource management comes in. HR helps organise, train, compensate, and manage employees to ensure they are working efficiently and effectively.
But do small businesses really need HR? Is it illegal to go without HR above a certain size?
Let’s dive in and answer all the questions about if small businesses need Human Resource representation. We’ll cover everything from the legal requirements to the number of employees that necessitate having a Human Resources department or qualified HR professional.
So, whether you’re a small business owner or manager, you’ll find all the information you need right here.
First things first, is having an HR department mandatory?
The short answer is no, it’s not a legal requirement in the UK.
If you don’t have an HR department, your managers will take care of tasks like hiring, promotions, and workplace grievances. However, with efficient HR outsourcing and consultation, small businesses can manage their teams effectively without worrying about things falling through the cracks.
So, at what point should a small business invest in HR?
Once your business begins to grow in size, it’s a good idea to consider hiring an HR consultant or a part-time HR employee. You can always start small and scale up once you see the benefits that dedicated human resources offer your company. A great place to start would be an outsource retained HR consultant, who will be on hand for HR consultation, auditing and ad hoc issues for a reasonable fixed rate.
As your business grows, so does the need for additional human resource representation. A commonly referenced recommendation would be to incorporate a full-time HR staff member once you reach about 50 employees to keep things running smoothly.
An external HR consultant will be able to identify any issues in your human resource management efforts and may be able to more effectively recommend at what stage you should consider full-time representation.
But, do all businesses need in-house HR?
While all businesses can benefit from human resource management, managers within the company can handle basic HR tasks with the help of outsourced HR consultation. Many issues can be dealt with when they crop up on an as-need basis, with the support of ad-hoc hr representation.
However, having dedicated HR support can be incredibly beneficial for both employees and the company. HR helps monitor employee performance, absenteeism, recruitment, training and development, asset and employee management, and payroll. Having an expert to handle these tasks is beneficial in ensuring the success of both employees and the company.
If you’ve decided that your small business could benefit from HR support, we’re here to help.
Whether you could benefit from ongoing human resource support from an outsourced HR retainer, or if you require HR support on an ad-hoc or a per-project basis, aible HR services can help. Contact us today for a free initial consultation and discussion of your business needs. Get in touch.
