Why small businesses don’t have an HR Segmentation and Do they really need?

Why small businesses don’t have an HR Segmentation and Do they really need?

HR system is an integral part of any size of the organization. Without an HR segmentation, organizations can’t execute their functions for a long term. HR system takes care of the entire administration, security and management responsibility of business. Complete data management of employees from entry, exit, benefits, training, development, work culture and everything is handled by the HR Department.

In Small firms, business owners feel they can handle everything on their own because the number of employees is limited and the work is less, there they don’t require a full-time HR to employment. But in this situation, you can deploy a part-time HR or Outsource the HR Department. You can’t bypass the need for HR system even in a company of least members.

In every organization, they are certain lawsuits are applied by the government of states and that need to be satisfied. Business owners can’t pay attention to each and every activity they may miss the deadlines or may not get updated with the lawsuits, because of this, they may suffer a penalty.

Reason for not setting the Human Resource Department in SME’s:

Less Employees:

Less paperwork, so the business owner feels they can maintain the information of the employee on their own. But, in this thought process most of the business owners are failed, because at the time of exit formalities when an employee asks for the documentation most of the times they fail to provide the complete documentation. Since every administrative, HR and business work needs to be handled by HR, and they don’t get much time to handle any work properly even though had less time. But the efforts required at business operations are equal for conducting the meeting and at other operations.

Minimal application of lawsuits

In small organizations with the size 10-20 employees normally they don’t have a federal and labor lawsuits to apply. When we go beyond that, it’s applicable. So the small business owners feel that there is no need for applying for compliance, if that is the situation then why do they need HR system in place. But in this case, we need an HR to be placed because we must have a record of every business operations and employee records from the entry to exit of every employee, from the start that is important for every rapidly growing organization and that can help them to free from any unnecessary claims in the future from their employees.

Being their own boss

In many small companies, business owners, we can find in them an attitude of being their own boss. They feel a single person is enough to handle everything, that attitude will make them feel huge losses in the business. Whatever may be the decision if you take the advice of some people it will help you to take better outcome and in top management, HR plays the best role in that for taking such assistance.

Less administrative work

Administrative work such as tracking records like sign in and sign out of an employee and taking care of the employee basic needs of the office such such as fans, AC, lights, chairs, seating arrangements, selecting a vendor for the purchase of office systems & stationery, arranging parties, snacks at morning or evening times, notifying anniversaries and birthdays, etc. Taking care of the working ambiance to be neat and clean, etc all these works are needed to be taken care of the business owner if they don’t employ an HR system in place. Whatever be the size of the company these are the basic task that needs to be carried out in every organization.

Payroll Management

Employees mostly not bothered about the documentation process and their work, but they are more concerned about their pay and pay scales. For an instance, if an employee got an uninformed deduction from their salary they are much bothered about that and they will shoot queries about those deductions, So the payscale calculations and payslips should be accurate. These type of calculation cannot be handled by the top management due to their hectic schedules.

The better and most prominent solution for this is outsourcing solution experts like us to take care you employee pay or make sign up with the technology vendors like ApHusys (Husys Application to manage your employee payroll) if you are a limited number of employees below 25 for free.

If you’re an SME’s and looking for an HR, we are ready to outsource HR for you. Please do contact us at reach@husys.com. We have a well-qualified professional’s and we love to hear from you.


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