HR in small business

Why Every Small Business Needs an HR Consultant on Speed Dial

November 19, 20244 min read

Why Small Businesses Need An HR Consultant on Speed Dial


Small businesses often encounter unique human resources (HR) challenges that can significantly affect operations. Without the necessary information or experience, handling these issues can consume valuable time and resources. So, why do you need a HR consultant? The answer lies in the efficiency and expertise they bring to the table.

Engaging an HR Consultant offers a cost-effective and efficient solution to overcome these challenges. HR Consultants bring specialised knowledge and experience in workforce planning, performance management, recruitment and retention, managing leave issues, employee relations, and compliance with employment laws and health and safety standards.

HR Consultants are an invaluable resource, providing essential guidance without increasing costs. They offer advice on an as-needed basis and can be engaged for business improvement projects when time and budget allow. While many small businesses only engage HR Consultants during crises, a proactive approach can help set up systems, processes, and policies to prevent issues from arising. This model of outsourced HR advice ensures your business is prepared and your employees are managed effectively.

Identifying and collaborating with an experienced and reliable HR Consultant early allows your business to grow while reducing future risks and issues. Early engagement before a crisis enables consultants to review your business thoroughly, identify areas needing attention, and align HR strategies with your growth goals. They stay updated on workplace relations, providing timely and relevant information to keep your business compliant and efficient. This partnership not only reduces legal risks but also ensures your business policies align with current legislation and industry practices.


HR Consultants offer solutions in several key areas

Recruitment and Retention: 

Challenge: Small businesses often struggle to attract and retain talented employees because they have limited resources and face stiff competition from larger companies.

Solution: To address this, businesses can adopt effective recruitment strategies and workforce planning to manage resources efficiently. Offering competitive salaries and benefits, fostering a positive workplace culture, and providing opportunities for career growth can also significantly aid in attracting and retaining talent.

Compliance with Employment Laws: 

Challenge: Small businesses often find navigating the complex landscape of employment laws and regulations overwhelming. This includes aspects like wages, leave and employee benefit standards, anti-discrimination laws, and health and safety standards.

Solution: Consulting with an HR professional who can identify areas of your business to focus on and where you may require legal expertise to ensure your practices meet current legal standards.

Employee Training and Development: 

Challenge: Offering adequate training and development opportunities can be difficult for small businesses due to limited budgets and resources.

Solution: HR professionals can assist in identifying and exploring cost effective and creative development options and explore online learning platforms to maximise resources. Encouraging mentorship within the company and focusing on skill development that directly impacts business performance can also enhance employee growth.

Managing Employee Performance: 

Challenge: Small businesses often struggle to effectively monitor and manage employee performance to ensure productivity and alignment with business goals.

Solution: To address this, establish clear performance targets and measures. Conduct regular performance reviews or discussions that provide constructive feedback, and recognise and reward high performance to motivate and align employees with your business objectives. HR professionals can provide processes and systems to do this effectively which are appropriate and aligned to your business.

Creating a Positive Work Environment: 

Challenge: Cultivating a positive and inclusive workplace culture that motivates employees and reduces turnover can be a significant challenge for small business.

Solution: Begin by understanding both the current and desired workplace culture. Develop policies that foster the preferred culture by promoting open communication, encouraging teamwork, and offering flexible work arrangements. Additionally, recognise employee achievements and ensure a healthy work-life balance to support a motivating and inclusive environment.

An experienced HR consultant can also help with: 

Remuneration and Benefits: 

Ensure compliance with base salaries required by Awards and Agreements but also review and develop competitive salary and benefit packages within budget constraints to attract and retain employees. If recruiting and retaining talent proves challenging, assessing industry remuneration to ensure competitive salaries when market conditions change is important.

Workplace Diversity and Inclusion: 

Enhance creativity and performance with focused efforts and policies that prevent hiring uniform skills and personalities that limit growth and creativity.


Health and Safety Compliance:

Meet all workplace health and safety regulations to protect employees sounds like a basic requirement, but it builds trusts and avoids legal issues.

Handling Employee Relations and Conflict:

Understanding employment laws and effectively managing interpersonal conflicts fosters good employee relations and creates a collaborative work environment and boosts productivity.

Employee Engagement and Motivation:

Deliberate focus on engagement and motivation is crucial for productivity and reducing turnover. Although it may seem simple, without consideration in advance, it can be difficult to manage, especially in the absence of a constructive culture.


Proactively addressing HR challenges equips small businesses with a robust, motivated, and compliant workforce, paving the way for success and growth. 

If you’ve been wondering if you need a HR Consultant for your business, why not engage us to conduct a review. We will look at your current HR activities and identify any areas that need your attention. Then provide you with a priority list to address compliance and legal issues first, through to building a constructive and engaged workforce. Get in touch [email protected].

Director

Paula Spice

Director

Back to Blog