Driggers, Schultz & Herbst
Attorneys and Counselors

Biggest HR Challenges faced by small businesses

Small business owners face many challenges, but human resource issues often create the most time-consuming and costly problems. Some small businesses may not be able to afford an HR department forcing owners to deal with those issues themselves.

Addressing potential HR problems is essential for the financial wellbeing and even the survival of your business here in Michigan. The failure to have updated policies can, in some cases, bring about the end of your business.

Common HR issues faced by employers

Many concerns can arise for small business owners. Among the most common are:

  • Recruiting: Knowing the laws over recruiting and hiring employees is vital not only to get the best people to join your company, but it’s essential to know the applicants’ rights when they apply for a job.
  • Safety: Statistics show there are 8,000 workplace accidents each day in the U.S. and 13 deaths. Having a safe workplace keeps employers from needless lawsuits. Most Michigan employers buy workers’ compensation insurance through a private insurance company.
  • Discrimination: Having policies in place to prevent sexual harassment and discrimination based on sex, disability, gender or any other issues helps protect your reputation and avoid costly litigation.
  • Conflicts: Companies with HR departments can help find solutions to employee conflicts, which can be time-consuming and potentially expensive. As the owner of a small company, you may need to address these concerns yourself. Remember to stay neutral and professional.
  • Record keeping: Small business owners are often buried in paperwork of all kinds. However, it’s crucial to your financial health to be organized, especially when it comes to employee contracts, tax information, invoices and other important documents.

Make sure your companys policies are up to date

Small business owners face many complicated challenges in finding and nurturing good employees while navigating an ever-changing world of state and federal regulations. Some of those challenges will remain even if you hire an HR professional. An experienced business and employment law attorney here in Michigan can advise you on strategies and review policies to help you minimize risk and liability, providing a solid foundation for your success.