HR Challenges for Small Business

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So, you’ve started a small business and watched it grow from a fledgling idea to a successful reality. Part of your success comes with the employment of new staff, whatever their role, they are there to help nurture your dream. But how can you help to nurture theirs and therefore create a mutually beneficial arrangement that will ultimately see your business prosper?

Here are some of the HR pitfalls that start-ups can stumble across.

Lack of HR Knowledge

Let’s face it, just because you’ve identified the gap in your area for a new coffee shop where customers can come and pet cats, doesn’t mean that your HR knowledge is up to scratch. By now, you may have recognized that employee performance is critical to the overall success of your company.

Making your employees valued collaborators in your endeavours will form a productive office culture where your work force has a positive influence on your customer relationships. But how do you go about creating that culture and making your employees feel valued while also looking after the all-important policies and practices that protect you and your business? Knowledge is power as the old saying goes, so it’s time to brush up on your basic HR knowhow.


‘Time isn’t the main thing. It’s the only thing.’ Miles Davis

Managing your time effectively when starting a business can be the difference between success and failure. Many small business owners will double up to cover the HR role. Lack of time and experience can expose you to potential issues. Outsourcing, or investing in an HR platform can have multiple advantages. Any reputable HR platform will have features such as benefits, onboarding and pay options helping you to save time and better allocate manual resources to areas that really matter to a company’s health.


Attracting the right people can be a strain on resources but developing an employee recruitment policy in line with solid HR practices can help to streamline this process and save you a lot of grief. Such practices can include the creation of an employee incentive program, benefits and office culture. Your job as a recruiter is to tell a compelling story about your company’s brand to entice potential talent into your workplace. For small businesses managing their own recruitment the online arena is often the perfect platform but remember to include more than just a list of tasks and salary. Show potential staff that your business is a place where employees are encouraged to grow and are appreciated.

Remember, happy employees make loyal employees, and loyal employees are great for business. Create an environment where staff enjoy being at work, and you will reduce sick days, staff turnover and poor performance.

By not providing adequate training or failing to consider policies like codes of conduct and pensions, you are ensuring that your journey on the road to success will be littered with potholes. Taking care of your people is an integral part of realizing your ambition.