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Small Business Human Resource Requirements

Human Resource Requirements for Small Businesses

Just like larger companies, small businesses face HR challenges that come along with hiring the right a team, creating and maintaining a company culture, and complying with ever-changing laws and regulations. HR requirements for small businesses include abiding by all applicable regulations and maintaining an appealing and competitive office culture.

Here are five quick tips to keep in mind when getting an HR program up and running.

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1. Know, Understand, and Follow HR Regulations and Law

From the very first day an employee is hired, there are HR laws and regulations covering everything from payroll, employee discrimination and harassment to termination.

2. Keep HR Files Organized and Confidential

It’s important to keep employee files organized and confidential. Ideally there should be two files for each employee: a personnel file and a confidential file.

Items to include in the personnel file are things like the employee’s resume and original job application, salary records, transfers, job evaluations, and any disciplinary actions. Items to include in the confidential file are medical records, leave requests, I-9 forms, payroll records, and reference checks.

3. Make Payroll on Time

It may sound like a given to stay up to date and timely with payroll, but many small businesses struggle to make payroll on time because of time constraints or disorganization. Stay organized with payroll systems and make sure to hand out paychecks on a consistent basis, at the same time each period. Timesheets can help keep track of vacations and sick time, and there are several online management programs that help small businesses stay organized, and be prepared for tax-time.

4. Create an Employee Manual

An employee manual explains a company’s policies and procedures, and communicates expectations to employees. It also helps protect the business in the event of a dispute.

5. Lay the Foundation for Being an "Employer of Choice"

Being an "Employer of Choice" means that candidates are eager to work for the business, that people look up to current employees, that the business receives unsolicited resumes, and that the most talented employees stay with the business throughout their careers. It's a coveted status. It signals the business’s brand is top-notch. And, when a brand is reputable, it's much less expensive to recruit and retain key employees.

Any small business can become an Employer of Choice. It's not just reserved for the big dogs. In fact, where small businesses may lack resources, they make up by having a unique, tight-knit, and "I can make a difference here" culture.

Ways small businesses can build a unique culture is to focus on company identity, recruiting and hiring, offering the right benefits, offering challenging and interesting work with opportunity for advancement, and recognizing employees.

The Small Business Guide to Human Resources