5 Must-have HR Policies for Small Businesses

HR Policies for Small Businesses

Human Resource isn't a thing we do; it's the thing that runs our business.

- Steve Wynne

Have you ever thought about knowing whether your employees are happy? If not, then it is high time you gave it a thought. It is a universal truth that businesses that value their employees tend to perform better. Happy and satisfied employees are more productive and help to improve the overall quality of work. However, recruiting and retaining the right talent is not an easy task, especially for small businesses. Human resources play a pivotal role in a seamless and successful business. Clear and effective HR policies for small businesses is a crucial ingredient. However, HR is not only responsible for recruiting the personnel but also plays a crucial role in making the work environment healthy as well.

Often, the owner or an executive accepts the responsibilities, since many small businesses lack a dedicated human resources department or full-time personnel to handle the functions. Managing an in-house human resource team can be challenging in numerous ways. Let us take a look at some of the issues that small company entrepreneurs confront.

Human Resource Management Challenges for Small Businesses
Recruiting, retention, payroll, and benefits deficiencies can result in non-compliance penalties, a shortage of competent personnel, and inefficiencies that obstruct your production cycle. Setting up HR policies for small businesses is not an easy task.

According to NetSuite, 47% of human resource departments see staff retention and turnover as their primary concerns.

Common HR challenges for small businesses:
  • Hiring new staff requires a significant time and financial investment on the part of small businesses
  • Small businesses lack the time necessary to train new hires, which may jeopardize workplace safety
  • Managing payroll and filing taxes can be a time-consuming and challenging task
  • Small businesses face compliance issues
  • Small businesses do not have human resources department to resolve conflicts
  • Retaining quality employees is difficult due to HR management issues

On the other hand, establishing a good connection and bridging the gap between the owner and the human resources department will ensure that employees are more goal-oriented and complete the tasks assigned.

A Must-have HR Policies


Health and Safety Policy

A health and safety policy should specify what workers are expected to do in the event of an emergency. For example, when someone is hurt or there is a fire, where are the nearest first aid supplies located and who are the qualified first aid providers.

BYOD (Bring Your Own Device) Policy

Bring your own device (BYOD) is a policy that permits workers to use their own devices for work-related activities. Many individuals in today's workplace utilize their mobile phones, computers, and tablets on the job. While enabling employees to use their own devices might save money, it can also raise issues about security and legal compliance.

The increase in personal device use compels businesses to develop BYOD rules. A BYOD policy is not intended to stop employees from carrying two phones. This policy is intended to guarantee that employees adhere to the stringent security procedures when connecting to the workplace network. It can provide convenience for employees while also saving the organization money. This is one of the prerequisite HR policies for small businesses.

Remote Workers Policy

With the unexpected outbreak of the pandemic, employees began working from home or remotely. The remote work policy defines the guidelines for remote work. Additionally, the policy should define who is qualified to work remotely, as well as outline the associated restrictions and expectations. Ensure that your policy is prejudice free and you have the authority to terminate the right to work remotely, if required.

McKinsey estimated that 9 out of 10 businesses will adopt a mixed work approach by 2021.

Bullying and Harassment

Bullying and harassment policies are often found to be missing from the HR policies for small businesses. However, it is the need of the hour and must be included in the policies to prevent bullying or harassment. Under this policy, employers or employees may be held legally liable for workplace harassment or discrimination. This policy informs employees precisely what constitutes bullying, discrimination, and harassment, as well as how such complaints will be handled and the associated repercussions.

Code of Conduct

The code of conduct policy establishes norms and defines the behavior that a company expects of its employees toward co-workers, managers, and the organization as a whole. According to the policy, employees are expected to abstain from offending, engaging in severe disagreements, and disturbing the workplace. The provisions of the code of conduct policy must be clear and accessible to workers, and they must be explained to new hires.

Communication and Effectiveness of Policies

Small business policies and procedures must be clear and well communicated to all employees. Policies might be incorporated into the employee handbook or maintained as a separate document. Small business rules and regulations for employees differ from those of large organizations, which is why they must be communicated effectively.

The most successful approach to communicating with employees is through routine review meetings conducted by human resources. Conducting a SWOT analysis, identifying their strengths and weaknesses, developing training programs for strengthening their weak areas, and encouraging them further in their areas of strength.

Disciplinary and grievance processes are crucial, and they must be contained in a written statement of the fundamental terms and conditions of employment. However, rules and procedures must be reasonable, meaningful, and enforceable by employees.

Investors Influence HR Practice in Small Business

According to the Trinity Business School study, small enterprises that are financed tend to follow the human resources and management strategies of their external investors.

It is considered that businesses that obtain funding from high-net-worth angel investors may focus on efficiency improvements. While those funded by private equity companies might take a more strategic approach to expedite expansion and maximize their backers return on investment (ROI).

Human resource plans are an integral component in attracting funding and growing a business. The decision to invest will affect the internal dynamics of the business, such as human resource management. That is why developing sound and effective HR policies for small businesses is critical.

How Is HR in Small Businesses Different from Large Companies?

According to NetSuite, around 35% of employees quit their jobs every year to pursue other opportunities.

The HR department's main focus is on the employees' well-being. The strategy may differ depending on the organization's size. HR in small businesses differs from HR in a large corporation. So, it's important to know what distinguishes HR regulations from those of small businesses and huge cooperatives.

The main differentiating factor between small and large enterprises is resource availability. Small businesses have limited HR staff and budgets. However, you might consult seasoned industry insiders to check if your work policy aligns with corporate aims. You may also hire or consult a third-party business learning program.

The second factor is recruiting and retention. For small organizations, HR experts must actively seek and publish ads on professional networks and platforms. Key companies have tried to establish recruitment processes and have outsourced some or all of them. However, small and medium-sized businesses have turned to less expensive options like pre-employment screening portals to streamline their hiring process.

Conclusion

Regardless of the size of your organization, you must try to get an HR specialist on board. Additionally, it is ideal to communicate critical rules, information, and instructions to staff via comprehensive written policies. Employers must establish a system for resolving workplace conflicts regularly. If a lack of human resource policies can create issues, then ill-conceived policies are also capable of creating problems. The policies listed above take into account the changing nature of the workplace in contemporary times.

FAQ:


What HR policies should a small business have?

Every small business should have these necessary HR policies:
  • Code of conduct
  • Bullying and harassment policy
  • BYOD policy
  • Equal opportunities
  • Training and development
  • Sickness and leave of absence

Why do small businesses need HR?

HR helps you plan for the future, helps you hire the best personnel with the best possible talent, and helps you achieve your goals.

Does HR protect employees or the company?

The main aim of HR is to safeguard the firm by offering qualified employment applicants regularly, facilitating effective and legal recruiting and selection procedures, and ensuring that the company's action are always lawful.

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Article | September 13, 2021

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Article | April 1, 2022

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Article | July 5, 2022

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Adopting digital transformation enables to fulfill changing behaviors and needs of customers. What are the most significant trends of digital transformation? Here are few significant trends of digital transformation in the coming year 2022 that will impact the work culture of businesses. Improved connectivity (5G) AI technology Cybersecurity IoT Multi-cloud and APIs What are key areas of digital transformation? The key areas of digital transformation are as follows: Business process transformation Domain transformation Business model transformation Cultural/Organizational Transformation { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "Why is digital transformation important for small businesses?", "acceptedAnswer": { "@type": "Answer", "text": "Digital transformation enables small businesses to ease out their operations, increases efficiency, automates workflow, helps to improve customer relationships. Adopting digital transformation enables to fulfill changing behaviors and needs of customers." } },{ "@type": "Question", "name": "What are the most significant trends of digital transformation?", "acceptedAnswer": { "@type": "Answer", "text": "Here are few significant trends of digital transformation in the coming year 2022 that will impact the work culture of businesses. Improved connectivity (5G) AI technology Cybersecurity IoT Multi-cloud and APIs" } },{ "@type": "Question", "name": "What are key areas of digital transformation?", "acceptedAnswer": { "@type": "Answer", "text": "The key areas of digital transformation are as follows: Business process transformation Domain transformation Business model transformation Cultural/Organizational Transformation" } }] }

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Small Business Advice

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Article | September 23, 2022

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Fingercheck Strengthens Small Business Processes at IncredibleBank

Fingercheck | October 12, 2023

Fingercheck, a prominent automated payroll and HR solutions provider has recently unveiled a strategic partnership with IncredibleBank to fundamentally transform the landscape for small businesses. Through this collaborative effort, Fingercheck is poised to grant small businesses seamless access to its leading platform, offering invaluable guidance throughout their growth journey. This partnership introduces modern payroll and HR solutions for business owners, including the introduction of 'Pay On-Demand,' a product that offers earned wage access for improved financial flexibility. As a strategic ally of IncredibleBank, Fingercheck occupies a unique position in enhancing the payroll, HR, and employee management processes for IncredibleBank's small business clientele. Leveraging its extensive experience in servicing over 5,000 businesses, Fingercheck brings to the table a wealth of knowledge as a mature fintech company, providing an intuitive user interface and robust functionality. The Fingercheck-IncredibleBank partnership represents a significant milestone in reshaping the financial services landscape for small businesses. By pooling their expertise, these two industry leaders are charting the course for a new era marked by seamless and efficient payroll, HR, and banking solutions that are tailored to the unique demands of small and medium-sized businesses. About Fingercheck Fingercheck is a leading firm at the forefront of providing payroll and HR solutions, with a core mission of simplifying the lives of small business owners. The company alleviates the stress and time-consuming tasks associated with payroll and HR management, including tax compliance. Leveraging advanced AI and automation technology, Fingercheck streamlines processes, saving valuable time and resources so that small businesses can direct their energies toward growth. Furthermore, the company's team is dedicated to delivering top-tier support, taking the time to comprehend each business's unique needs and providing tailored solutions to expedite internal processes, making them both efficient and precise. About IncredibleBank IncredibleBank, initially established in 1967 as River Valley Bank with a single location in Rothschild, WI, has since expanded to 15 locations across Wisconsin and Michigan, with a new branch set to open in Florida in 2023. The bank has deep roots in community banking and has been recognized as one of America's Most Innovative Banks by the Independent Community Bankers of America. IncredibleBank is committed to staying at the forefront of banking technology, with the primary goal of offering the best and simplest banking experience for customers nationwide.

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MANAGEMENT

DigitalOcean Launches Managed Kafka Offering

Business Wire | September 27, 2023

DigitalOcean Holdings, Inc., the cloud for startups and SMBs, today announced the launch of DigitalOcean Managed Kafka, a new, fully managed data streaming platform as a service offering for Apache Kafka. DigitalOcean Managed Kafka helps small and medium-sized businesses across industries, including video streaming, the Internet of Things (IoT), data analytics, gaming, and eCommerce, access and process data streams in real time while eliminating the complexity associated with the Kafka administration. Through this offering and other enhancements across DigitalOcean’s portfolio, startups and tech entrepreneurs can more easily grow their businesses in the cloud. “While Kafka is the gold standard for data streaming, it frequently presents technical challenges for smaller businesses with budget and resource limitations. We are excited to introduce a solution that makes this technology more accessible and meets DigitalOcean’s standard for simplicity,” said Megan Wood, Chief Strategy & Product Officer at DigitalOcean. “By reducing the burden of implementing a new platform, companies can shift their focus away from the complexity of managing their data streaming services and get back to building apps that differentiate their business.” As businesses receive higher amounts of data inputs, the ability to rapidly capture and process this data becomes crucial. Thousands of companies, including over 80% of Fortune 100 companies, rely on Kafka to optimize their data streams and provide leaders with insights that inform decision-making. With DigitalOcean Managed Kafka, startups and SMBs can benefit from the ability to scale up and down clusters with ease while setting up alerts for proactive maintenance. Additionally, DigitalOcean customers can expect end-to-end security via private networking and data encryption along with cost-effective, predictable pricing starting at $147 for a three-node cluster. “DigitalOcean's Managed Kafka offering has been a game-changer for us at Datacake,” said Lukas Klein, Chief Technical Officer at Datacake. “By taking care of the operational aspects of running our Kafka cluster, we have been able to focus our attention on what really matters – building a great product. With this new service, we were able to migrate seamlessly to an event-based architecture while maintaining the highest levels of operational security.” Alongside DigitalOcean Managed Kafka, DigitalOcean has been making investments in its product and infrastructure offerings to provide peace of mind, increased productivity, and more affordable solutions to SMBs and startups. Some of those recent updates include: GPUs with the acquisition of Paperspace-The computing power needed for training AI models and deploying at scale Premium CPU-Optimized Droplets-Higher outbound network speeds, higher performance, and faster disk writes than standard Droplets Enhanced memory and storage for Basic Premium Droplets-More flexibility with a wider choice of virtual machines Low-cost support plans for every size of business-Eight-hour response times for all issues, regardless of severity Object Storage in the Bangalore data center-Increased performance with compute and storage in one location In addition, over the coming quarters, DigitalOcean will unveil the following enhancements and capabilities to continue to make DigitalOcean the cloud of choice for SMBs and startups: More flexible storage offerings -Effortlessly accommodate dynamic storage requirements with Scalable Storage for Managed Databases, a cost-effective solution that helps businesses expand their data footprints with confidence Faster, frequent, and comprehensive Backups -Ability to create daily Droplet backups that are differential, significantly reducing the time required to create them Better performance for a range of products -Extending the premium variant to the General Purpose line of Droplets, providing newer generation CPUs, faster NVME drives, and up to 10 Gbps of outbound data transfer speeds making them ideal for running e-commerce, consumer, and SaaS apps About DigitalOcean DigitalOcean simplifies cloud computing so builders and businesses can spend more time creating software that changes the world. With its mission-critical infrastructure and fully managed offerings, DigitalOcean helps developers at startups and small and medium-sized businesses (SMBs) rapidly build, deploy and scale, whether creating a digital presence or building digital products. DigitalOcean combines the power of simplicity, security, community and customer support so customers can spend less time managing their infrastructure and more time building innovative applications that drive business growth.

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BUSINESS STRATEGY

Chase to Supercharge Support with 1000 New Bankers to Fuel Small Business Success

Chase | November 06, 2023

• Chase to hire 1,000 business bankers by 2025 • Small business optimism remains high, with 2/3 expecting revenue growth • JPMorgan Chase invests in small business support, including credit access and mentoring Chase has recently announced that it wants to hire 1,000 new business bankers across local markets in the United States by 2025. This strategic move aims to provide crucial support to small business owners as they endeavor to expand and grow within their respective communities. This announcement builds upon the company's original target of employing 500 new bankers by the end of 2024. According to the findings in Chase's 2023 Mid-Year Business Leaders Outlook, small business optimism remains notably high. More than two-thirds of small businesses are anticipating increased revenue and sales in the coming year. Furthermore, 45% of small business owners have expressed a strong intention to accelerate their growth. This amplified commitment to hiring coincides with the firm's inaugural "Make Your Move Summit," a three-day event that attracts thousands of small business owners. The summit provides them with an opportunity to learn from industry experts, thought leaders, and even celebrities, imparting valuable insights on how to initiate, manage, and expand their businesses. JPMorgan Chase has made several substantial investments to support the small business community. This is achieved by facilitating connections between business owners and entrepreneurs and a variety of valuable resources, including: Capital Expanded Access to Credit: The firm continues to invest in widening access to business credit for all customers, including those in historically underserved areas. They have developed products, programs, and coaching services to assist businesses at every stage of their growth. Special Purpose Credit Program: Launched in 2022, this program, in compliance with federal requirements, is designed to enhance access to small business credit in predominantly Black, Hispanic, and Latino communities across all 48 lower states. This initiative has aided over 10,000 small businesses in responsibly accessing or obtaining credit on more favorable terms. Supporting Community-Based Organizations: Since 2021, Chase has committed $253.7 million in philanthropic capital, which includes loans, grants, and equity, to organizations focused on community dedicated to serving small businesses. This commitment also includes $4.4 million in philanthropic capital to benefit the Texas small business community, including organizations such as Impact Ventures, a Dallas-based startup accelerator and integrated capital fund catering to Black, Hispanic, and Latino entrepreneurs. Connections Mentorship and Advice: The firm emphasizes connecting businesses with expert guidance and mentoring to help them overcome challenges. Their free one-on-one coaching program, staffed by 51 trained senior business consultants in 21 U.S. cities, is dedicated to mentoring and advising business owners, with a particular focus on Hispanic, Latino, and Black communities. Since its launch in 2020, this mentorship program has assisted over 4,600 business owners at various stages of development. Customers Promoting Access to New Customers and Networks: JPMorgan Chase aims to facilitate access for its 6 million small business clients to new customer bases and networks that can foster growth. This includes assisting in the establishment and utilization of its supplier network. It means developing closer relationships with local businesses in key cities, such as Dallas, enabling these small enterprises to tap into the firm's regional network and resources. The inaugural Make Your Move Summit is currently taking place in the thriving small business landscape of the Dallas, Texas, area, with 17,500 Chase employees in the Dallas metropolitan region serving 234,000 small businesses in North Texas as well as 674,000 all over the state.

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MANAGEMENT

Fingercheck Strengthens Small Business Processes at IncredibleBank

Fingercheck | October 12, 2023

Fingercheck, a prominent automated payroll and HR solutions provider has recently unveiled a strategic partnership with IncredibleBank to fundamentally transform the landscape for small businesses. Through this collaborative effort, Fingercheck is poised to grant small businesses seamless access to its leading platform, offering invaluable guidance throughout their growth journey. This partnership introduces modern payroll and HR solutions for business owners, including the introduction of 'Pay On-Demand,' a product that offers earned wage access for improved financial flexibility. As a strategic ally of IncredibleBank, Fingercheck occupies a unique position in enhancing the payroll, HR, and employee management processes for IncredibleBank's small business clientele. Leveraging its extensive experience in servicing over 5,000 businesses, Fingercheck brings to the table a wealth of knowledge as a mature fintech company, providing an intuitive user interface and robust functionality. The Fingercheck-IncredibleBank partnership represents a significant milestone in reshaping the financial services landscape for small businesses. By pooling their expertise, these two industry leaders are charting the course for a new era marked by seamless and efficient payroll, HR, and banking solutions that are tailored to the unique demands of small and medium-sized businesses. About Fingercheck Fingercheck is a leading firm at the forefront of providing payroll and HR solutions, with a core mission of simplifying the lives of small business owners. The company alleviates the stress and time-consuming tasks associated with payroll and HR management, including tax compliance. Leveraging advanced AI and automation technology, Fingercheck streamlines processes, saving valuable time and resources so that small businesses can direct their energies toward growth. Furthermore, the company's team is dedicated to delivering top-tier support, taking the time to comprehend each business's unique needs and providing tailored solutions to expedite internal processes, making them both efficient and precise. About IncredibleBank IncredibleBank, initially established in 1967 as River Valley Bank with a single location in Rothschild, WI, has since expanded to 15 locations across Wisconsin and Michigan, with a new branch set to open in Florida in 2023. The bank has deep roots in community banking and has been recognized as one of America's Most Innovative Banks by the Independent Community Bankers of America. IncredibleBank is committed to staying at the forefront of banking technology, with the primary goal of offering the best and simplest banking experience for customers nationwide.

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MANAGEMENT

DigitalOcean Launches Managed Kafka Offering

Business Wire | September 27, 2023

DigitalOcean Holdings, Inc., the cloud for startups and SMBs, today announced the launch of DigitalOcean Managed Kafka, a new, fully managed data streaming platform as a service offering for Apache Kafka. DigitalOcean Managed Kafka helps small and medium-sized businesses across industries, including video streaming, the Internet of Things (IoT), data analytics, gaming, and eCommerce, access and process data streams in real time while eliminating the complexity associated with the Kafka administration. Through this offering and other enhancements across DigitalOcean’s portfolio, startups and tech entrepreneurs can more easily grow their businesses in the cloud. “While Kafka is the gold standard for data streaming, it frequently presents technical challenges for smaller businesses with budget and resource limitations. We are excited to introduce a solution that makes this technology more accessible and meets DigitalOcean’s standard for simplicity,” said Megan Wood, Chief Strategy & Product Officer at DigitalOcean. “By reducing the burden of implementing a new platform, companies can shift their focus away from the complexity of managing their data streaming services and get back to building apps that differentiate their business.” As businesses receive higher amounts of data inputs, the ability to rapidly capture and process this data becomes crucial. Thousands of companies, including over 80% of Fortune 100 companies, rely on Kafka to optimize their data streams and provide leaders with insights that inform decision-making. With DigitalOcean Managed Kafka, startups and SMBs can benefit from the ability to scale up and down clusters with ease while setting up alerts for proactive maintenance. Additionally, DigitalOcean customers can expect end-to-end security via private networking and data encryption along with cost-effective, predictable pricing starting at $147 for a three-node cluster. “DigitalOcean's Managed Kafka offering has been a game-changer for us at Datacake,” said Lukas Klein, Chief Technical Officer at Datacake. “By taking care of the operational aspects of running our Kafka cluster, we have been able to focus our attention on what really matters – building a great product. With this new service, we were able to migrate seamlessly to an event-based architecture while maintaining the highest levels of operational security.” Alongside DigitalOcean Managed Kafka, DigitalOcean has been making investments in its product and infrastructure offerings to provide peace of mind, increased productivity, and more affordable solutions to SMBs and startups. Some of those recent updates include: GPUs with the acquisition of Paperspace-The computing power needed for training AI models and deploying at scale Premium CPU-Optimized Droplets-Higher outbound network speeds, higher performance, and faster disk writes than standard Droplets Enhanced memory and storage for Basic Premium Droplets-More flexibility with a wider choice of virtual machines Low-cost support plans for every size of business-Eight-hour response times for all issues, regardless of severity Object Storage in the Bangalore data center-Increased performance with compute and storage in one location In addition, over the coming quarters, DigitalOcean will unveil the following enhancements and capabilities to continue to make DigitalOcean the cloud of choice for SMBs and startups: More flexible storage offerings -Effortlessly accommodate dynamic storage requirements with Scalable Storage for Managed Databases, a cost-effective solution that helps businesses expand their data footprints with confidence Faster, frequent, and comprehensive Backups -Ability to create daily Droplet backups that are differential, significantly reducing the time required to create them Better performance for a range of products -Extending the premium variant to the General Purpose line of Droplets, providing newer generation CPUs, faster NVME drives, and up to 10 Gbps of outbound data transfer speeds making them ideal for running e-commerce, consumer, and SaaS apps About DigitalOcean DigitalOcean simplifies cloud computing so builders and businesses can spend more time creating software that changes the world. With its mission-critical infrastructure and fully managed offerings, DigitalOcean helps developers at startups and small and medium-sized businesses (SMBs) rapidly build, deploy and scale, whether creating a digital presence or building digital products. DigitalOcean combines the power of simplicity, security, community and customer support so customers can spend less time managing their infrastructure and more time building innovative applications that drive business growth.

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Events