Why Is Human Resources Important for Small Businesses?
Disclaimer: This article is not provided as legal advice, nor is it a substitute for legal counsel. As laws in jurisdictions vary, it is incumbent on the recipient to insure compliance with State and Federal labor and tax laws. The content of this blog should foster discussion with your financial advisor to determine parameters of state and federal laws affecting your business. Gusto payroll and human resources services are only available in the US.
Human Resources (HR) helps small businesses:
- Perform better
- Scale up
- Reach their goals
With effective small business HR resources available, your business will see improved employee performance, increased loyalty, and stronger commitment. For small businesses owners, having HR resources and human resource management available may seem like an unnecessary expense. This couldn’t be further from the truth. In fact, having resources available to meet your small business HR needs might be your secret weapon to performance management and achieving ongoing prosperity! Having HR resources and representation in your small business can help you ensure compliance with state and federal labor laws. This, in turn, opens a trustworthy channel for employees to communicate issues. And, if your business has plans to scale up, having a plan for providing HR is something you’ll need to turn your big plans into a grand success.
What Does HR Do? The 7 Major Functions of Human Resources
HR handles many core administrative functions of a business. Depending on the size of your business and its needs, HR functions might be very involved, or only involved for certain purposes. For instance, in traditional employment models, HR often handles the hiring process, including recruiting and interviews. In a more limited capacity, HR may handle only onboarding, payroll, paperwork, and benefits enrollment. In general, HR oversees 7 main areas of business operations and contributes to its overall success.
and benefits (health insurance, 401k, employee benefits, ACA, ERISA, HIPAA,
policies (SHRM-CP certified guidance, drafting policies and policy
compliance, time tracking, social media, etc.)
assessment and management (OSHA, safe working environment, etc.)
relations (mediation, conflict resolution, employee files)
- Hiring process
(drafting job descriptions, recruitment, interviews, hiring, onboarding new
hires, payroll services)
and career development, including performance reviews
management and proactive planning
Human Resources Gives Your Business a Competitive Edge
Salon human resources? Spa human resources? HR in the gym? Many small business owners underestimate the need for HR in small, service-based businesses. Salon staff hiring can’t be that difficult! While it’s true that hiring salon, spa, or fitness center staff may not be that difficult—hiring the right staff is a little more complicated. Here are a few sample scenarios that having HR resources available could help:
checks, new hire onboarding, payroll set-up
- Formal employer
policies and documents, likeemployee
handbooks and booth rent contracts
retention tools (health care, retirement plans, worker’s compensation,
unemployment insurance, conflict resolution, etc.)
compliance (OSHA, state and federal labor laws, etc.)
One of the greatest challenges of small business ownership high turnover rates due to limited benefits and no resources to address employee concerns. Losing talented staff members is completely avoidable! Which is where HR outsourcing, like having HR resources available through Gusto, is your secret weapon to attracting quality employees—and keeping them happy.
Formalize Your Salon, Spa, or Gym Human Resources Policies
Payroll and HR services such as Gusto’s Concierge Service can help your salon, spa, barbershop, med spa, or fitness center formalize policies that you’ve been handling on your own, such as:
- Booth rental contracts and agreements
- Salon employee contracts
- Scheduling agreements
- Commission structure contracts
- Dress code policies
- Lunch and time off policies
- Salon employee handbook (spa handbook, gym or
fitness center handbook)
- Staff etiquette policies
- Formalization of business procedures
- Compliance with employment laws
- Meeting the employer requirements of the
Department of Labor
Gusto Offers All the Benefits of a Full HR Department at a Fraction of the Price
Most small businesses don’t have the resources or need to hire a full-time HR professional. With Gusto, you don’t have to—but your business will have all the benefits and protections of an HR department. Gusto’s HR Concierge service helps you protect your business and build a better place to work that’ll attract a higher caliber employee—and help you keep them happy. You’ll have a SHRM-certified HR professional available to guide you through benefits and programs for your employees, with software that’s ACA, ERISA, and HIPAA compliant. Gusto’s dedicated HR support team will always be just a call or email away. You’ll also have 24/7 access to a library of templates, training, and tools that’ll help you build a better working environment for your staff.
Build your business better with Gusto and Vagaro! Onboard new employees to set them up for ongoing success by making HR resources available. Take care of your employees, and they’ll take care of you—HR is the key! Try Gusto free for 3 months through your Vagaro software and see if adding an HR upgrade to your service bundle can help your business reach its goals!
Header Image: Giorgio Trovato via Vagaro
Icons, Infographics, and Animations: Mia Montemayor via Vagaro
4 Proven Ways to Boost Your Salon Client Retention Rate
Vagaro is a cloud-based scheduling software commonly used by beauty, fitness, and wellness businesses to manage booking, credit card payments and processing, marketing, payroll, inventory management, reporting, and much more.