Human Resources 1: Overview to HR Functions in Your Small-Business

This begins a series explaining the human resource functions someone needs to perform in your business. I am not a legal expert. I encourage you to consult legal experts as needed.

Every business with 2 or more employees—including family members—have to fulfill human resource (HR) functions. Litigation and legislation have made certain HR functions more mandatory and regulated. Technology and outsourcing have made them easier. Specialization has made them more difficult to perform as the one-person boss of the company. During the next few weeks we will explore and examine HR’s role in small-businesses and how owners can meet all the demands.

Major Human Resource Roles in Small-Businesses

Today’s human resource functions go deeper into the company than ever before. They can still be divided into groups that will help you understand them more easily. While this list seems comprehensive, it is not. I did not include some of the functions that can save you money or liability. I will add more details in subsequent posts. Some of the major functions include:

• Recruiting and Selection of Employees
• Recruiting (avoiding legal issues of discrimination, preference, & nepotism)
• Testing
• Selection
• Background and reference verification
• Intake (including I-9, OSHA, FLSA, Privacy, and other legal requirements)
• Orientation, Training, and Development
• New employee orientations
• Safety orientation
• Legal orientation
• Responsibilities and functions
• Policy and Standards of Conduct
• On-going Training
• Safety Training and Meetings
• Skill development on new equipment or platforms
• Certifications, licenses, and other requirements
• Change implementation & management
• Job Evaluation
• Avoiding FLSA liabilities
• Determining exempt or non-exempt status
• Compensation
• Salary grades and ranges
• Performance appraisal system
• Salary increase systems
• Health, life, dental, eye, and other medical benefit packages
• 401K, pension, or profit sharing
• Processing payroll, collecting and paying applicable employee taxes
• Regulations affecting family and child employees
• Legal & Termination procedures
• Avoiding unsuspected liability
• Staying current on changing employment law
• Discipline, warnings, & terminations in at-will or contracted environments
• Complying with applicable OSHA guidelines

We will explore these categories over the next few weeks and share sources of information to help you.

Thursday we outline optional methods for human resource management in your company