Small business owners typically wear many hats, tracking inventory, servicing customers, and managing the finances. A crucial business component that occasionally gets lost in the shuffle is human resources. Having a dedicated HR department minimizes the risk of employee issues, legal problems, and workplace violations. Here’s more information about a few common HR problems faced by small business owners.

3 HR Challenges for Small Businesses

1. Poor Hiring

In large corporations, an HR department will spend time creating a detailed and accurate job ad; however, small business owners aren’t always granted these luxuries. Additionally, without taking the time to thoroughly vet a candidate, some owners may end up with under-qualified or ill-fitting employees. Having these types of team members will waste company resources, as owners will need to constantly repeat the hiring process to replace employees.

2. Ineffective Training

A lack of training disempowers employees and deprives them of the basic knowledge and tools they need to complete their duties. All employees should be given a training manual and a pamphlet that details the company’s guidelines. Without these resources, new hires will enter the workplace, unable to accurately represent your brand and service clients.

Additionally, new hires may injure themselves without proper training, especially if their line of work involves machinery. As a result, they may file a workers’ compensation claim or lawsuit against the business.

3. Getting Too Friendly

While having a rapport with the workers boosts morale and employee retention, small business owners should always maintain their leadership roles. Keep the relationship professional; otherwise, it may become challenging to give feedback, command respect, and make requests. An HR department will enforce professionalism, allowing owners to remain respected but approachable.

If you want your small business to have its own HR department, contact the team at PayrollHR Hawaii in Kilauea. You’ll have more time and energy to focus on your company by outsourcing this essential role. Their team will make sure that your business hires the best candidates, adequately trains new hires, and maintains an air of professionalism. To schedule a consultation, send a message online or call (808) 828-2070.