What is HR to a Small Business Owner?

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What is HR? To put it simply, HR is possibly one of the most complicated aspects of running a business. HR is as much complicated as it is incredibly important. HR professionals manage not only hiring, administration, and training; they play a major role regarding employee salaries and their benefits.

Human Resources:


The personnel of a business or organization, especially when regarded as a significant asset.

  • The department of a business or organization that deals with the hiring, administration, and training of personnel.

In a small business, you might have one or a couple of people working in your HR department. Or, maybe you manage it yourself? Regardless of the number of employees you have, understanding the way HR works and it’s responsibilities is essential to the success of your business.

What is HR?

Human Resources deals with employees and all the details that come with it. Including recruitment, management, and any form of direction or assistance. Specifically, HR is often in charge of:

  • Hiring
  • Performance management and reviews
  • Documentation and employee related paperwork
  • Employee development, motivation, and training
  • Safety and wellness
  • Benefits
  • Communication between employees and/or management
  • Compliance with labor and employment laws

There’re some major responsibilities in that list. More than one person can usually handle.

Your HR department takes care of the above tasks but they also have a major role in the culture and environment of your business. HR professionals set the tone for how employees and management communicate and work with each other.

Small Business HR

What do you think of when you hear HR for your business? Maybe it’s just synonymous with payroll to you? Be careful not to forget about the other important administrative tasks related to HR.

One of the most daunting responsibilities is to manage compliance with current laws and regulations. This is what makes up the majority of the administration area from the HR definition above.

Read: 3 Benefits the PEO Solution Can Offer Your Small Business

So, how do you keep up with constantly changing government compliance regulations? Here are a few resources.

HR Resources

It’s pretty easy to feel overwhelmed by all the responsibilities that come with owning a business or working in HR. Here are a few sites to help:

  • SHRM (Society For Human Resources Management): This site is full of useful articles and resources for business owners and HR professionals. You’ll be able to find reliable information on current compliance regulations and how new employment laws apply to your business.
  • DOL (Department of Labor): The official site of the United States Department of Labor. Here, you can find all the information you need to know about current laws and regulations to keep your business in compliance. And there are usually great FAQ pages whenever a new regulation occurs. Priceless!

Outsourcing HR to a PEO

Many small business owners are turning to PEO companies to help manage all the details that come with having employees and to free up their time and the time of their HR staff to focus on more strategic tasks.

The PEO Solution can offer your small business:

  • Administrative HR and compliance
  • Health benefits: including plans, administration, and management.
  • Retirement plans
  • Worker’s comp insurance
  • Payroll administration and tax management
  • Help with government compliance
  • And more
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