Today’s blog post comes to us from David Weil, one of our expert business advisors here at BusinessAdvising.org. Dave is the Founder of Weil CFO Solutions, providing financial solutions for small businesses. We’re thrilled to have him share his advice on our blog today; shedding some interesting insight on HR decisions for your small business.
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As a small business owner, you understand the many demands your business has, and you do your best to tend to each and every one. Still, owners of most small and medium-sized businesses tend to be hesitant when it comes to investing in Human Resources (HR). Often they view it as a necessary evil that should be minimized. However, failure to invest in proper HR resources can actually cost your business money in the long run though incurred extra costs and/or creating significant liability exposure.
Unfortunately for the ever-busy entrepreneur, federal and state governments have created a complex web of rules and regulations that are often difficult to navigate. As a result, it is very easy for a small business owner to become non-compliant, which can then lead to money and time spent to fighting a problem. Some areas where this can easily happen are:
- Worker Classification – Should you classify your business’ workers as independent contractors or employees?
- Wage and Hour Rules – What’s the proper method for documenting work hours and breaks?
- Overtime Pay – When are you required to implement it, and how can you ensure that you’re paying it properly?
- Hiring and Firing – These processes require you to follow specific guidelines and documentation – are you clear on all of the rules?
- Occupational Safety and Health Administration (OSHA) – OSHA is a federal agency that enforces health and safety compliance – how well versed are you in the rules and regulations?
- Workers Compensation – Your business’ workers need protection from injuries, how can you make sure that you’re managing this business requirement properly?
As you can see, there is more to HR than just payroll. Luckily, there are various ways to be proactive in this department. A properly trained HR administrator can help quite a bit. Not ready to make such a commitment? Remember there are third party service providers that can provide useful assistance too. And don’t discount volunteer mentors who have experience and insight that they are willing to share.
HR may seem like an aspect of your business that you can just skim over, but when an issue arises, you’ll be glad that you didn’t. Make every reasonable effort you can make now to proactively protect your business and its workers. Investing your time in HR compliance now, will be worth it later.
How do your business’ HR tactics shape up? Share your comments with us!