HR 101 for Small Businesses

Posted on

December 7th, 2020


Many startups and several small businesses often rely on a single individual to manage human resources tasks. Some business owners make this decision due to the small nature of the company and perceived lighter workload. However, even the smallest of businesses have to comply with labor laws and other work regulations.

When a single employee manages HR, that individual has to balance compliance with administrative tasks and ensuring all employees receive accurate and prompt paychecks. Their busy workload often means they have little if any time for other HR tasks like recruiting, onboarding, and scheduling.

Investing in HR software can help small businesses reduce manual tasks and master the following essentials:

  1. Compliance. Federal labor laws are complex and constantly evolving. HR ensures the company complies with these laws and handles all required forms such as I-9s, W-2s, W-4s, etc.
  2. Payroll. HR ensures employees receive their paychecks on time without errors. Payroll is a complex task involving collecting timesheets, calculating pay, and accounting for taxes and withholdings. This process is prone to human error when done by hand, which can result in costly compliance fines.
  3. Recruiting. Finding the best person for an open position is a significant challenge. HR employees have to publish job listings, filter candidates, and perform background checks. Poor talent acquisition standards can result in high turnover and poor job performance, which has long term consequences for the company’s success.
  4. Onboarding. HR has more work to do once recruiting candidates for open positions. New employees have to fill out several forms, learn company policies and procedures, and meet their team. Onboarding is critical to help employees find their groove and understand their role within the organization. Without it, they may flounder, make avoidable mistakes, or struggle to engage with their team.
  5. Attendance management. HR manages employees’ schedules and leave requests to ensure the company has the appropriate staffing. This includes paid time off, sick leave, overtime, and more to comply with labor laws. They are also responsible for other areas of attendance, including tardiness and absences.

Without absence management software, it’s difficult to track attendance. Managers from different departments may provide sick leave requests at different hours of the day, and late arrivals may go unnoticed if it’s less than five minutes. While five minutes may not seem significant, it adds up over time—especially if the employee skims five minutes off the end of the workday and extends their lunch break as well.

Robust absence management technology allows companies to track attendance with much greater accuracy. It also allows employers to notice trends and identify attendance issues that can hurt workplace morale, productivity, and profits. To learn how mobile absence tracking software can help your business, contact the experts at Actec.