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Is It Time for Your Small Business to Have a Dedicated HR?




A Human Resources (HR) department is something that all businesses, no matter their size, need to have. Your HR department is responsible for managing employee records, handling payroll and benefits, and ensuring that your company complies with employment laws.


Many small business owners take on the role of HR themselves, thinking that they can save money by doing so. As your business grows, however, it becomes more and more difficult to wear all the hats and do everything yourself.


In this article, we’ll look into the benefits of a dedicated HR department, the reasons why you might need one, and small business HR solutions that can help you get started.

What Do Dedicated HR Departments Offer You?

Most small business owners believe they can handle the day-to-day tasks of HR themselves.

But contrary to popular belief, dedicated HR departments aren’t just glorified hiring consultants.


Sure, you may be able to handle the basics like hiring and firing, but do you really know everything there is to know about employment law? Are you up-to-date on the latest changes to tax and benefits regulations? Do you have a good understanding of how to resolve employee conflicts?


Chances are, the answer is no. And that’s where dedicated HR departments can help. They take care of all the HR-related tasks for you so that you can focus on running your business.


Dedicated HR departments can also help you avoid costly mistakes. Employment law is complex, and if you’re not careful, you could wind up facing hefty fines or even jail time. An experienced HR professional will know how to navigate the law and keep you compliant.

4 Reasons You Might Need a Dedicated HR Department

While a dedicated HR department will always be beneficial to your business, there are certain circumstances where it becomes essential. Let’s take a look at four of them right now.

1. You’re struggling to recruit and retain top talent

Small businesses tend to have issues with recruiting. Many top candidates will only consider working for big brands because they offer more job security, better benefits, and higher salaries.


A dedicated HR department can help your small business attract top talent by being attentive to the ever-changing needs of the workforce.


For example, in today’s climate of social distancing, many businesses are turning to remote work arrangements. A small business that can quickly adapt its recruitment process to focus on remote employees will be better positioned to attract top talent.


It can also help you develop better employee retention strategies. Employee turnover is costly, and a good HR department will be able to identify the reasons why your employees are leaving and put measures in place to prevent it from happening.

2. When you’re scaling up

Scaling up is an exciting time for any small business. But along with growth comes a whole host of new HR challenges.


For example, you might need to start dealing with international employees or remote teams. You might need to put together an employee handbook or implement new performance management strategies.


A dedicated HR department will be able to help you navigate these challenges and ensure that your business is scaling up in a compliant and efficient manner.

3. You’re facing an employee lawsuit

No business wants to face an employee lawsuit. Unfortunately, they’re becoming more and more prevalent.


If you find yourself in this situation, you’ll need an experienced HR professional on your side to help you navigate the legal process. They’ll be able to advise you on how to avoid these situations in the future and protect your business from future liabilities.

4. You need help with compliance

Compliance is a big issue for small businesses. There are so many regulations to keep track of, and it can be easy to miss something.


A dedicated HR department can help you make sure that you’re always compliant with the latest employment laws. They’ll also be able to advise you on changes that you need to make to your policies and procedures.

HR Solutions for Small Businesses

Of course, the many benefits of having a dedicated HR department come at a cost. This can be prohibitive for small businesses, which is why many of them choose to outsource their HR needs instead.


Outsourcing allows you to tap into the expertise of an experienced HR professional without having to hire someone full-time.


You can outsource as much or as little of your HR needs as you like. And if your business starts to grow, you can always scale up your outsourcing arrangements to meet your new needs.



A dedicated HR department offers several advantages to small businesses that are struggling to recruit, retain, and comply with employment regulations.


While the cost of setting up a dedicated HR department can be prohibitive for some small businesses, outsourcing is a more affordable solution that can still provide access to the expertise of experienced HR professionals.




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