Tips For Running Your Small Business With No HR Department

Running a small business is sometimes synonymous with limited staffing. If you don't have a human resources (HR) department or professional to oversee this essential operational component, don't worry. There are ways you can organize your business without one effectively.

Besides having an employee handbook, here are eight additional tips for running a successful business without an HR department.

1. Designate people for HR roles

Designate someone as the HR contact for general administrative requirements and monitoring policies and forms. You can also delegate the HR responsibilities among different team members.

Make sure it is clear who has what role and what it entails. For example, choose an employee to be the contact for benefits, complaints, payroll, or on-the-job injuries. Everyone you choose for an HR role also needs to be properly trained for their area, so consider providing professional development opportunities.

2. Have a way for employees to share problems anonymously

Employees need to have a way to express their problems to management or report sexual harassment claims, improper reviews and compensation issues. However, it can be uncomfortable to report problems about your manager to your manager.

You can minimize this issue by having an anonymous way for employees to report their problems. Tools such as TINYpulse provide a platform to collect feedback from your employees anonymously, so you know their thoughts in real time. This tool can also work for small teams!

3. Don't forget company culture

One HR responsibility that people sometimes overlook is maintaining a healthy company culture. Your culture includes values, how employees engage with each other and your business, and how employees understand your company's mission, vision and goals.

Strong company culture can make your team more resilient and improve the work environment and employee job satisfaction. Ways you can support company culture include:

• Listening to your employees.
• Having effective communication across your organization.
• Building trust through transparency.
• Encouraging collaboration.
• Providing regular feedback.
• Having benefits and reward incentives.
• Embracing diversity and inclusivity.
• Building fun memories and rituals.
• Supporting professional development and well-being.

4. Train managers for hiring and conflict resolution

Even without an HR department, your business needs an efficient hiring process that doesn't cut corners. Poor hires can be costly in the long term. Every hiring manager needs to be trained in recruiting, interviewing and assessment requirements. Managers must also have conflict resolution skills, since they will be the first people to handle any issues emerging within teams.

5. Set up an efficient onboarding and training process

Sometimes you hire the right employee, but lose time and money during onboarding and training. Even a good worker trained improperly can be unproductive. Spending some time to develop documents and a training process can be beneficial in the long run. It is also useful to have written policies and standard operating procedures for important tasks. This way, you can easily cross-train employees, especially for HR tasks.

6. Have clear termination guidelines

Firing someone is an unpleasant job. However, the process can go more smoothly if your business has clear termination guidelines. Have these guidelines in writing in the employee handbook and communicate them during the interview or onboarding. By explaining workplace rules before employees start, any termination doesn't come as a surprise. An example of a disciplinary process is:

1. A verbal warning.
2. First, second and third written warnings.
3. Suspension.
4. Termination.
5. Be compliant with the law

Workplace legislation changes often and applies differently, depending on the company's location and industry. Make sure you understand current laws and that you are compliant and up-to-date. Hiring an attorney to review relevant laws can be helpful to your business and an HR consultant for audits. You can also benefit from hiring an expert to help you resolve sensitive issues, such as sexual harassment allegations.

7. Invest in people-management software

Many tools can help you automate important HR functions, so they are efficient and consistent. They can help you with:

• Applicant tracking
• Compensation management
• Creating employee profiles
• Onboarding
• Performance management
• Time tracking and attendance

Examples of HR tools that cover all these features include BambooHR, Rippling and Monday.com. Other tools such as Zenefits also help with payroll, managing benefits, and have add-on features with access to an HR professional for questions you have.

Final thoughts

Even if your small business doesn't have an HR department, you still have to prioritize every responsibility that an HR professional covers. Well-managed HR functions can ensure your employees are productive, and your business is compliant with laws. The success of your company and the satisfaction of your employees will depend on it.