7 Issues of Human Resource Functions for Small Sized Firms

All the Entrepreneurs across the globe agree that Human Resource Functions or human resource management is not just a mere part of the company; rather it is the soul of a company. It is the most important resource for small, medium and even the large businesses. Apart from hiring and retaining experienced and well-motivated employees, the HR functions also invest a great deal of time and other resources in building a highly skilled HR team.7 Issues of Human Resource Functions

To hire or not to hire HR staff is a major issue for small businesses. Your organization, be it small or large, must have a well-established structure and hierarchy that signifies the tasks related to human resource planning and staffing.

Listed below are some prominent issues/concerns of a small-scale business firm:


1. HR Online

It is one of the major concerns of most of the firms. The entrepreneurs find it difficult to manage the entire HR data and communications.

Solution: In order to minimize the workload and costs, you can establish a central location online that provides managers with a convenient access to all the HR information.


2. Professional Employer Organization

Most of the business firms are encounter issues related to managing the responsibility for their company’s HR administration.

Solution: Associating with Professional Employer Organization can resolve this issue, as their responsibility includes hiring or firing employees, the amount of money employees earned to the company and so on. You can consult an HR consultancy for connecting you to the leading PEOs.


3. HR Solutions

The firms operating at small-scale usually faces issues related to non-attainment of comprehensive HR solutions.

Solution: The solution to this problem is very simple. You can easily focus on your core business and outsource your human resource requirements to a renowned consultancy. The consultancy will help you maintain compliance to federal and state regulations.


4. HR Essentials

While starting a business, you may look for solutions that tackle the changing employee management needs.

Solution: “HR Essentials can be defined as premium scalable services that focus on employee performance and productivity.


5. Recruiting and Applicant Tracking

To ensure the hiring of quality workforce and reduce turnover is the prominent concern of an organization.

Solution: “Hiring a reputed HR consultancy or agency is the ultimate solution in order to recruit a pool of eligible candidates as per your specifications, and enable a more efficient recruiting and candidate tracking process.


6. Employee Screening Services

Besides, attracting a pool of applicants for the desired designation, the firms encounter the issue related to screening eligible candidates.

Solution: “The HR professionals make sure that the applicant is screened for all the requirements specified by the company owner.


7. Background Check Service

Maintaining a safe workplace for your employees is of prime concern to all the organizations.

Solution: “HR specialists make it simple to conduct background checks. The specialists ensure that the background check is a comprehensive analysis of Criminal History, Social Security Reports, Previous Employer Verification, Qualifications, Reference Verification and so forth.


Necessity for an HR Consultancy

A reputed HR Consultancy cuts down all the overhead costs and foster creative, consistent and constructive decision making.

The following statistics describe the result of wrongful hiring: –

  • 1/3 of the resumes and job applications are embellished distorted or falsified.
  • Almost 1/4 of the job applicants applying for a job test positive for illegal drugs or have criminal records.
  • 30% of small business failures are the consequence of employee dishonesty.
  • Millions of dollars are spent in awards for workers compensation, negligent hiring, harassment and other legal claims.

Thus, an HR Consultancy help business owners to save money, time and other resources via reduced turnover, improved productivity, decreased complaints and lawsuits. Further, it allows the firm to respond quickly to changes resulting from external or internal factors.



A small company needs each personnel to work efficiently and effectively as a team. No one can fill in the gaps when things go awry. If you are unable to manage the Human Resource Functions effectively; you can always rely on a prominent HR consultancy agency.

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