3 Critical Steps to Improving Your Small Business HR

By Kris Bovay, Manta Online

If people are your most important resource, then you need to understand the role of human resources in your small business. Many small business owners believe that because they have only a few employees they do not need to focus on human resources issues. The reality is that when you are a small business owner, you need to focus more attention and support to your human resources because, effectively, they can make or break your business.

Even from a mathematical perspective this is true. If a small business has only 4 employees, each of those employees has at least a 20% impact on the business (the small business owner is counted in this impact assessment). If a business has 19 employees, each of those employees has a 5% impact on the business; and so on. Therefore the impact of a bad hiring decision or an under-performing employee is significant to small businesses.

Every business employs resources to get work done; typically the resources are a mix of people and equipment. Equipment resources are typically measured for value (that is, cost and return on investment or payback on investment). Human resources are often not valued similarly but if they were, business owners would pay a lot more attention to making sure they hired the right people, trained them well and measured their performance effectiveness regularly.

Click HERE to read what you can do to make your business’ HR efforts more effective.

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2 Responses to “3 Critical Steps to Improving Your Small Business HR”

  1. 3 Critical Steps to Improving Your Small Business’ HR « Strategic Growth Concepts for Start-up, Small and Mid-size Businesses Says:

    […] convinced they’re too small to need an HR function in their company; read it now at “HR Concepts for Small Business“. Posted in Entrepreneurship, Human Resources, Small Business. Tags: hr functions in small […]

  2. 3 Critical Steps to Improving Your Small Business HR « HR Concepts … « Small Business Says:

    […] Re­ad t­h­e­ origin­al h­e­re­:  3 Cr­itica­l­ S­teps­ to­ Im­pr­o­ving Y­o­ur… […]


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