Dive Brief:
- Despite public perception that human resources work can be done by essentially anyone, nothing could be further from the truth, according to an article at Entrepreneur. If HR gets their job wrong, the company pays.
- HR is no less complex than accounting or other disciplinces, write authors Doug and Polly White, owers of Whitestone Partners Inc., a management-consulting firm that specializes in helping small business. New rules will impact small business HR operations in particular -- businesses that often don't have an HR person.
- There is a complex list of things that a competent HR professional needs to know about, such as the Family and Medical Leave Act, COBRA, wage and hour rules, affirmative-action programs, worker’s compensation, unemployment hearings, hiring guidelines and termination procedures, they write. Getting any one of these areas wrong can be very expensive.
Dive Insight:
The Whites write that for years, many small businesses have been able to fly under the radar. This is changing. The Obama administration has put a focus on giving all workers a pay increase. The Department of Labor and IRS are making the rules more difficult for small businesses and have greatly increased enforcement efforts.
Thier advice to smaller business owners: no matter how many employees on board, either hire a qualified HR professional or at the very least (if you can't afford an HR pro), go outside and get an HR consultant who can help establish proper processes and procedures to ensure it remains compliant. A less knowledgeable person (for example, an administrative assistant) can implement the procedures. The HR professional will be available to help on an as-needed basis and she or he can periodically review the work to ensure things remain on track.
Bottom line, even if it's a small business, HR issues are important, so don’t take shortcuts that could cripple your business, they advise.