Business – Some Important Things to Know about HR when Starting a Company

Many entrepreneurs fail to realize the importance of Human Resources, but there are many aspects of a business plan in which study of Human Resources plays a pivotal role.  Indeed, most small business owners would benefit greatly from an educational background in the discipline up to and including a degree in Human Resources.

human resource for startups

Prior to creating a functional business plan, entrepreneurs should take into account the personnel management aspects, including recruiting and personnel retention, benefits and payroll, and employee privacy.


This may sound like a fairly straightforward consideration especially with the record unemployment the country has faced over the past few years, however it is far more complex than it might seem.  Qualified employees are often difficult to find.  What procedures are in place to ensure that favoritism and bias don’t creep into the employment assessments?  Such concerns could lead to substantial legal problems if not dealt with at the very beginning.  At no time should the hiring process be affected by race, gender, creed, or religion.  A professional HRM will protect the company from costly hiring mistakes.


Once you have a good team in place, the last thing you want is for that team to fall apart and leave the company. You want to retain your employees.  While a certain amount of employee turnover is natural during the course of any business, you’ll need policies in place which keep this at a minimum.  Creating a positive work environment takes a great deal of knowledge in human psychology as well as managerial procedures.  A Human Resources discipline plays a vital role in creating such an atmosphere.


With the every changing legislation regarding employee healthcare and benefits, it is difficult at best for one single business owner to stay abreast of all the statutes in additional to the daily running of the business.  Human Resource professionals understand the legal aspects of providing employee benefits packages, from the monthly, quarterly, and annual reporting requirements to the Federal mandates governing such packages.


The worst thing a business owner can face is a problem with the payroll, either because of a miscalculation in hours or because of cash flow problems. Such an issue can completely undermine the morale of an entire organization.  The Human Resources Manager will help put procedures in place which will reduce the chance of any errors occurring thereby saving the owner from future headaches.

Employee Privacy

Employee records must be kept confidential at all times. Failure to do so will result in costly lawsuits for you and your company.  Your HRM will ensure that records are properly maintained and secured.

via Alltopstartups


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