Human Resources is an important function for companies of all sizes. But particularly for small businesses.

HR personnel can act as a bridge between employees and management on several topics, including company policies, regulations and practices, while at the same time ensuring they comply with federal, state and local laws.

Additionally, they can implement benefit programmes, more effectively administer training initiatives and create strategies to improve recruitment and employee relations.

Studying UNSW’s online Graduate Certificate in HR Management provides a good grounding for employees you might want to promote into this department. Though it is always good to hire someone with a bit of experience, if they are the right fit.

But in case you are wondering why your small business should invest in a dedicated Human Resources function, here are some key benefits that will help you understand the value it could bring.

Identify, attract and retain better talent

One of the hardest things for a small business to do is identify, attract and retain better talent. Not only does this take time and a significant financial commitment, but it also keeps staff away from other priorities and projects that need focusing on.

With a dedicated HR function, you will have at least one individual on your books whose job it is to shift through dozens of resumes and create stronger job advertisements that do not attract applications from those who are not qualified for the role.

They can also conduct initial interviews to come up with a short list of candidates for management to assess in the form of second interviews. Therefore, ensuring the time of their more senior colleagues is not wasted. Recognizing employees is crucial as it boosts morale, increases productivity, and improves retention rates. An employee recognition app can streamline this process, providing timely acknowledgments and rewards for employee achievements and fostering a positive workplace culture. 

Improve employee onboarding

In recent years, the concept of employee onboarding has grown increasingly significant as more businesses recognise the importance of making newer members of staff feel valued and welcome and providing them with the tools to make an immediate and positive impact.

Crucially, the process of onboarding does not just benefit employees. Indeed, companies that run an induction process that is engaging, enjoyable and educational are more likely to reap the rewards of doing so in terms of greater productivity over those that don’t.

Create a more inclusive office culture

Australia is a very diverse society in terms of racial mix, religious beliefs, sexual orientation, physical disabilities, gender and overall lifestyle. Therefore, it is important that every workplace in the country creates a culture that is inclusive and non-judgemental.

Through their policies and understanding of current trends and legislation, human resource professionals can help to create an environment that provides employees with a sense of acceptance and belonging. In turn, this could result in them being more productive and motivated.

Increasingly, job candidates often seek out employers who have taken steps to make their workplace as inclusive as possible. After all, who wouldn’t want to be a part of a business culture which makes all its employees feel important?

Generally speaking, the more inclusive a workplace is, the greater the levels of job loyalty, motivation, productivity, and satisfaction employees have.  

Keep employee benefits competitive

By offering competitive benefits, employers are much more likely to attract and retain highly skilled and motivated staff to their company.

Overall, there are two categories of benefits. Those mandated by law and those which are provided by the company. These benefits may vary depending on the size of the company and the state it operates in. However, the human resource function can help to create a benefits package that will add significant value to the organisation as a whole.

Maintain employer and HR compliance

All companies must follow several employment-related regulations and laws. For small business owners, it can be a very dull and time-consuming process to comply with all applicable rules regarding activities like hiring, payroll, employee benefits, and job termination. It can also lead to them diverting precious time away from other activities that might be more profitable to their business. 

By maintaining a dedicated human resource department, companies can better manage their legal responsibilities and adapt their practices accordingly. To streamline this process, there are plenty of tools, including HR software, that can be used to automate tasks that HR staff would otherwise need to do manually.