The Human Resources (HR) department is crucial for both the management and development of employees in any kind of organization, including small businesses. Having an HR position in your small company helps achieve peak performance. Generally, most businesses start small and eventually grow, but what really helps them survive and prosper are many factors, and one of them is managing people by using modern HR practices.

Unfortunately, with a focus on providing salaries and maximizing performance, small entrepreneurship ventures are more likely to neglect the importance of HR. Much research has been conducted on this matter, and they reveal that not having one can lead to failure to address performance issues, failure to develop employees, difficulty attracting top talent, and failure to comply with employment legislation. It is very common for small business owners to take upon themselves much of the burden when it comes to human resource-related tasks, Which is why it is advisable to hire one in order to relieve oneself of such burdens.

But, how can it be done while bootstrapping, or even struggling on budget? There are many alternatives available to you online which allow you to hire HR reps part-time, and not take on an entire HR staff all at once.

HR Consultant – a contracted consultant which is on-site or online, that can be utilized for small HR projects and tasks without breaking the bank by offering a salary that an in-house employee would take.

HR Consulting Company – this is a completely outsourced company that is working closely with you in creating job descriptions, forms, policies, systems, employee handbooks, and/or training to support your business.

HR Software – this software can alleviate some burdens and can also help with tracking your employee’s life cycle from hire to termination in one system that provides legal HR compliance.

HR Service Provider – which is similar to HR/payroll software with added HR compliance benefits of a team of consultants to assist with employee relations and HR functions.

PEO – which stands for Professional Employer Organization, allows you to completely outsource all things HR to a PEO co-employer that hires your employees and leases them back to you at a monthly rate.

To conclude, the importance of HR as a field is very critical to the success of your small business. As the company grows, owners should not themselves take on tasks concerning the HR field. They should always strive to hire alternative HR services, if hiring an internal HR department is currently out of the picture.