Small businesses typically have their hands full with daily operations. They have enough to deal with when it comes to determining the future of the company. Many companies are trying to help alleviate the stress with complex employee system updates. Therefore, businesses should seek outside assistance for complex HR rules. For instance, as soon as the first employee comes aboard, a business must improve awareness and understand HR rules’ importance.
According to the Chicago Daily Herald, one of the first issues small businesses will likely face is determining the Fair Labor Standards Act’s boundaries for exempt and non-exempt employees. The EEOC is a factor if a worker files a discriminatory or harassment lawsuit against a business. It is extremely easy for employees to do so when few or little HR rules are in place.
Recruiting and retaining employees
Small businesses are always searching for the best workers. However, there’s always the chance a company could encounter performance issues with specific employees. Having an outsourced HR department would quickly address most issues with recruiting and retaining employees.
Compliance is a primary reason for businesses to seek HR assistance. With the additional regulations and policies, companies could benefit from outsourced human resources to manage employee manuals and policies.
“I think you need an outside HR resource after 20 employees,” Lori Kleiman of HR Advantage told the Chicago Daily Herald. “Many Human Resource laws come into play about the 20-employee level.” Businesses could run into legal issues with poorly managed HR departments. One of the biggest lawsuits businesses see is discriminatory claims. According to the Washington Post, more than 1 million employment discrimination complaints have been filed with the government from 2010-2017.
McDonald’s Restaurants of California Inc. recently paid $50,000 to settle a lawsuit for denying a worker’s right to practice his religious beliefs. According to HR Morning, one of the fast-food giant restaurant owners refused a Muslim worker’s request to grow a beard as part of his religion and was eventually terminated. The worker went to the EEOC, which sued the restaurant on the worker’s behalf.
Small businesses regularly face discriminatory cases, and they can be protect themselves by looking for expert human resource assistance. Small companies should reinforce their staff’s training and make sure they are properly following their policies in the workplace.
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