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The Importance of HR for Small Businesses

ImageStarting a new venture is always exciting—you get to dip your toes into something fresh and decide what direction you’ll take to complete the endeavor. When starting your own business, however, multiple aspects must be considered—the culture, mission, values, employee size, procedures, management, etc.—and this is where business owners tend to overlook the importance of a human resources department. Small businesses are pressured to bring in sales in order to keep their doors open, but as more sales are made, workload increases and more employees are needed. This is where HR is crucial. 

With the need for more employees comes the need for proper management training for supervisors. If there is little to no guidance on how to manage employees, the company may be more exposed to liability for illegal employment practices. There needs to be someone who is well versed in current employment laws—if your company continues to move forward and ignores the importance of being in compliance, you run a high risk of getting yourself into legal trouble. And as a small business, a single lawsuit may close your doors for good.

Furthermore, an HR department is needed for talent management purposes. If management only cares about the dollars coming in and disregards their employees’ needs and well-being, there is a great chance these vital employees may leave. Pressure from management to complete work as well as having a large workload may lead to employee burnout. Small businesses need to retain their talent and find ways to keep their employees present—incentives, rewards and recognition are some popular tactics. Management needs to show their employees that all their hard work is much appreciated, therefore a culture that values and balances both work and play may alleviate stress and simultaneously promote productivity and overall morale. All in all, small businesses cannot afford to have a high turnover rate because the longer a seat is vacant, the more money it costs the company…and the more burnt out employees may feel if the extra work load gets dispersed.

For small businesses who cannot afford an HR department, there are outsourcing options. e-VentExe has a special service called eBasicHR which serves as a full HR department. eBasicHR gives business owners access to documents and forms necessary for compliant purposes, as well as unlimited use of an expert HR consultant who will answer and advise any question or issues that may arise.

*e-VentExe is a full service human resource consulting firm specializing in compliance law, recruiting and selection, training and development, and assessment tools. If your company is interested in learning more about eBasicHR or any of the services listed above, please call e-VentExe at 916. 458-5820.

 

Meet the new CALSHRM State Director…

ImageNew Year, new Human Resource leaders. The New Year is a time for embracing change—from simple things such as changing your diet to grandeur aspects such as electing new leaders. None is different for CalSHRM, the California State Council for the Society of Human Resource Management. As a full service human resource consulting company, we live and breathe HR; we take pride in assisting organizations with any of their HR needs, while still maintaining the human connection. With the HR profession growing tremendously as well as technology, what is the outlook for HR in 2014? Michael Letizia, PHR-CA, the new State Director of CalSHRM for 2014 and 2015 shares his insights and goals for CalSHRM and the overall profession.

Having been a member of SHRM since 2000 and serving on the board in various roles until 2013, Michael’s role as State Director is to primarily oversee the functions of the Council and to bring the SHRM affiliates together in the state to solidify initiatives. The Council consists of solely volunteers that Michael will manage, which he deems as a daunting task especially in such a large organization (SHRM is prevalent in California compared to other states).

In terms of goals for CalSHRM, Michael continues to strive for the plans and goals the past President and he created a few years ago, where they envisioned what they believed the California Council should look like. Michael, whose leadership style has always been collaborative, also set some personal goals for himself; he would like volunteers to feel they are part of a larger purpose and that they receive the intrinsic value they sought. One of Michael’s main focus is to ensure the volunteers understand the time, skills, and efforts they put forth into the State are truly making a difference, and that they feel they are part of an organization that is making a difference in California.

Michael hopes to educate California employers and to bring advocacy to businesses and to HR people—professionals and those who are responsible for running HR in their organizations who are not deemed as professionals. Although SHRM caters to HR professionals, Michael believes it is very important that the Council support the individuals who are responsible for HR that may not have the opportunity at this time to call themselves HR professionals.

As such, CalSHRM is partnering with SHRM to be the HR advocate for the employee and the employer. Michael believes education about HR tactics and strategies must be brought to Sacramento to bring the HR voice to the legislature in assisting the government craft ideas that will benefit both California employees and employers.

Michael finds the progression of HR to be very exciting, stating that when he first began his career in the field, he was a Personnel Clerk. Now, as the profession has gained momentum and recognition, HR is being seen as a Strategic Partner and in many companies, a member of the Executive Team. Companies are learning that if they do not direct, assess, and manage their talent, they are not going to achieve the results they hoped. They need people in order to be successful and if they fail to bring in a professional that can help them manage individuals to their fullest potential, then they are not going to get to the place they envisioned. Many Executives are not interested in developing plans for people; they are looking at it from the business perspective. Having that voice at the table talking about human talent to achieve the organization’s goals and the process to make that happen is crucial. Individuals working in HR need to articulate and demonstrate why they are essential to an organization.

Michael stresses that HR individuals and small business owners must be experts in California (and Federal) labor law compliance and understand litigation risks. With California State laws changing at an alarming rate, employers must be updated with compliance and be prepared for consequences if they come; after all, one lawsuit can close a small business.

Advice for individuals currently working in HR is that they must be realistic about the advancements of technology and its impact on society. Michael stresses that California and its employers need to change their views of the traditional work structure in regards to the younger generation entering the workforce: they have to allow workers to be flexible in their schedule in order to reach optimal results. The younger generation is not afraid to say the traditional norm is outdated and antique. Michael praises companies such as Google, who allow their employees to work wherever they can as long as they deliver and meet the company’s expectations. He believes Google and other companies embracing work flexibility are successful because they are managing their talent very strategically. Michael believes that other organizations could reach the same potential if they embrace new ideas and concepts that are shaping our society.