When your business is growing, HR might not seem like the most important thing to think about – in fact it’s the opposite.


hr challenges


In that period your staff will be perhaps the most vital part of your company. For that reason it’s essential you get your management right from the very start.


Make sure you’re aware of these five common HR challenges:


Compliance and contracts


Compliance with employment law is a real struggle for smaller businesses. Without a dedicated HR department, staying up to date with employment law can be very difficult.

With small law changes being made, employees will raise new questions almost every week and you could soon find you’re really behind.


Along with it, when it comes to employment law, employers often struggle to ensure that their employment contracts are up to date with the latest regulations. Having contracts checked by employment lawyers may seem expensive, but there isn’t really much choice for small businesses otherwise.


It is essential to make sure your employment contacts are up to date, not just for you but for the peace of mind of your employees too.




Holiday calculations


It might seem simple, but giving your staff their legal 20 days holiday every year can lead to a lot of paperwork.


Many employers decide to keep track of holiday requests through printed spreadsheets and email based request systems. This can just add to the time burden that holiday calculations bring with them, when there are quite a few options out there to help manage holiday calculations all in one place.


Trying to keep track of vacation requests can be a real pain, and that’s before you start to calculate for part-timers or staff who leave part way through the year.


Staff turnover


It might be due to lack of staff engagement or poor performance, whatever it is, staff leaving a business can be a real drain on resources.


Instead of using the time to grow your business further, business owners are left looking for, and training, new team members. What employers don’t often realize is that this is part of classic HR challenges and you can do more to retain your staff.


HR can offer more benefits to staff working for you already, or can train them up properly in the first place. In this way business owners can have more control when it comes to staff turnover than they may realize.


HR challenges




Redundancy is the word that no business owner ever really wants to think off but small businesses often tread a fine line when it comes to taking on staff.


If the situation changes, you may realize that you can’t afford to keep staff on. Therefore will be necessary to make redundancies to ensure running of your business.


However, many smaller employers aren’t always aware of the process to handle redundancy. Same as with legal compliance, sometimes you just don’t have the time to look up your options. So, without professional help you could make the wrong decision which leads to more issues further down the line such as an employee tribunal.


Outsourcing your HR


Outsourcing isn’t directly part of the HR challenges but it’s certainly something that impacts on how your growing business conducts its HR.


Knowing whether to keep your business’ HR internal, or to recruit external help, is a important decision for a small employer. But, as with most things, it comes down to cost and commitment.


Often employers just don’t see the real benefits to the ‘done-for-them’ HR consultants that offer them a long term contract. Knowing that your HR challenges are covered for the next few years without even having to think about it is a real benefit for a growing business.


HR will always be a challenge for small and growing start-up businesses. Any business really after all, it’s about dealing with people; who are rarely predictable!

Growing businesses shouldn’t allow to have HR challenges. And, if you keep on top of it you’ll have a real handle on your greatest asset – your team.