No matter whether your business is small, starting out or is more established, human resources (HR) are incredibly important. From health and wellbeing to career progression, HR handles all employee affairs, keeping your workplace free of a toxic environment and helping staff thrive in the workplace. Positive employee relations can help your business succeed, improving retention rates and company culture. However, these human resources functions may differ in a small business compared to a larger one, for a number of reasons…

Handling HR can be a difficult process, especially if you’re only just finding your feet in the business world. Here at Payroll Worldwide, we provide outsourced HR and payroll services to businesses in Latin America and those wishing to expand. Every business should have access to effective HR services, but how do smaller businesses differ from larger ones?


Recruitment and Retention

Organising plans for recruitment and retention strategies can be one of the most time-consuming tasks that HR departments undertake. A designated HR person will have to write and post advertisements, as well as find the very best candidates through interviews. In order to save time and decrease stress, smaller businesses have turned to pre-employment assessments to make their recruitment processes more automated. Sometimes, smaller businesses reach out to HR outsourcing services to take the burden off of their hands.

When it comes to retention, smaller businesses actually have a little bit more of an advantage. In large businesses with around 100 employees, it can be hard for those in the HR department to build proper relationships with the staff. In smaller businesses, you can get to know your employees on a more personal level. Smaller businesses can also offer more flexible work and tailored benefits to retain staff.


The Number of Resources

By nature, more established businesses will have more resources and money to pay HR staff. Smaller businesses usually don’t have the luxury, so will create hybrid roles to cut costs. This can actually allow staff to develop a broader mindset and role, allowing them to undertake new things. Smaller business human resources functions won’t be as polished as larger ones, but you can ask other professionals and develop a strategy that works for you.

If you are struggling to find the right amount of resources that work for you and your budget, then there’s no need to worry. You can recruit outsourcing companies to handle every single aspect of your small business payroll and HR, allowing you to focus on more important aspects of your business. To find out more, or to consider your options, please visit us on our services page here.


Getting the Structure Right

In larger businesses, organisation hierarchies are more noticeable. HR is a very important cog in your business machine, and a good structure needs to be identified for clarity. However, you don’t want to establish a bureaucratic structure, as it can make employees feel out of place, and it can be difficult to connect HR’s outcomes to the organisation’s core values. Finding the right structure can help your HR department work more effectively, creating a better business environment.

With years of experience in the industry, we already have human resources functions in place that are proven to be successful. If you would like HR services that are already in place to suit your business, then we’re here to help. To book a free consultation with us for more information, please fill out our online contact form here.