Many small businesses treat HR much as they may treat fire safety: The day-to-day pressures of running the organization may cause them to neglect even the basic steps that keep them in compliance, and, when an issue does ignite, they’re forced to scramble. To save money, research shows, 54 percent of small businesses handle employment matters themselves. But CEOs at these businesses often realize they’d be better off devoting their time to sales, technology and other functions. In the end, many of the employees who take on HR duties simply aren’t prepared. In fact, 70 percent of businesses with five to 49 employees add HR onto the workload of employees with little to no experience in workforce issues
From a business point of view, organizations with fewer than 20 employees often are better off when the owner delegates HR responsibilities to someone inside the company, experts say. But it’s not only important for business leaders to begin delegating at the right time; they should also consider to whom they’re going to entrust their workforce and how they’re going to help those people succeed.
- When to Delegate
Small-business HR practitioners, owners and consultants agree: The time to begin delegating usually occurs sometimes around the hiring of employee No. 10. However, they don’t base that estimate on any kind of formula. Rather, they say, it’s around this time that an organization’s leaders discover their time can be spent more advantageously on other things. The sheer pace of business and turnover are also factoring in deciding when an owner should delegate HR.
- Identify the Right Person
Once you have made the decision to delegate HR, many business owners make the mistake of assigning subordinates based on their role rather than their abilities. You need to find someone who can keep everything confidential, be administratively organized, and an empathetic listener and guide for employees.
- Delegating Means Training
Picking the right person means identifying the person with the right potential—and then training that person. HR requires considerably knowledge, and one of the worst mistakes a business owner can make is to give HR responsibilities to someone who doesn’t have at least some education in the basics.
- Be Prepared to Grow
Business owners aren’t finished once they’ve named a point person for HR. An organization’s needs change as it grows and adds locations and increasingly complex jobs. You need to reassess every year. If you’ve added 20 people, three of them remotely, it’s probably time to move HR responsibilities beyond the office manager.
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