Should Small Business Leaders Have an HR Person or Do It Themselves?

Many small business owners struggle with the question of whether hiring an HR professional is the right move. What protections can a qualified HR officer offer a small business? Is the investment worth the payoff? How big does a company have to be to justify a full-time HR worker? Read on to shed some light on how and why hiring an HR professional might be a smart move for your small business.

Legal Requirements

Depending on the state, businesses are often under heavy regulation when it comes to how to handle employees properly. The consequences for improper management of human resources within a company can be dire, including costly legal proceedings that could potentially end the business. Although investing in an HR professional who knows how to handle adversity in the workplace and steer clear of pitfalls for the company can be costly, the alternative of trying to navigate the murky legal waters of HR management alone could prove fatal for a young, small company.

Hard to Be Fully Qualified

The gold standard for HR workers is an accreditation called the Professional in Human Resources (PHR). There’s a lot you have to study to be qualified for PHR. These are awarded by the HR Certification Institute (HRCI) which administers exams to prospective employees. To adequately prepare for the test, most industry professionals recommend dozens of hours of studying.

While a potential addition to your company would be much more valuable to you as the owner if they have earned this certificate, you should be aware that salary expectations of those who possess a PHR will likely be higher.

HR Cost Considerations

Experienced HR managers earn a median income of over $100,000 in the United States. For a small business, especially start-ups with bottom lines in the red, this could pose an enormous fiscal burden. In some cases, hiring the right HR worker may not be possible.

There is, however, the option of HR outsourcing services for businesses that cannot afford a full-time staff member. These outside groups perform the necessary HR work for the company, including hiring paperwork, background checks, performance evaluations, decision-making for the future and so on.

For businesses that have the funds, investing in an HR professional often makes the most sense. As the owner, you will breathe easier knowing somebody is looking out for the company by taking care of the complex legal frameworks associated with human resource management.

Here is another article you may like: Deciding Which Type of Franchise You Want

About the Author Miha Matlievski

Breaking taboo called FAILURE by talking openly about it, sharing my fail stories and lessons that I learned on my way back from hell. I had four successful companies that at one time all went bankrupt. You could say that I went from hero to zero. But I managed to survive! Down that road I became Fail Coach not by degree but by failing personally and professionally, learning from my failures and growing. If you are looking for a coach try not to find one with shiny diploma hanging on his wall but one that has personally gone to hell and back.

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