Should a small company recruit an HR?These 3 points tell you whether you need HR

In small businesses, the need for a human resources (HR) department has always been a controversial issue.

This problem becomes particularly complex when the number of employees does not exceed 50.

Should a small company recruit an HR?

HR is Human Resources The abbreviation of "," is generally translated as human resources or personnel resources in Chinese, which means the personnel department.

I have an opinion that small businesses do not need to have a human resources (HR) department:

Especially if the number of employees does not exceed 50;

This is because it is difficult to pay high salaries for HR positions in companies with 50 or fewer employees;

It is difficult for HR personnel with an annual salary of less than 20 to provide unique insights;

After all, if HR itself does not have excellent qualities, how can it identify outstanding talents?

Most companies can only hire HR with an annual salary of no more than 10, and then expect them to independently undertake tasks such as recruitment and performance management, but in practice it is difficult to achieve this.

Let’s explore why many small companies choose not to hire HR and whether this is a wise decision.

1. Salary issues for HR positions in small companies
2. Lack of unique insights from small company HR
3. The mismatch between high-paid HR and small companies

Salary issues for HR positions in small companies

First, let's look at salary.

In small businesses, it is difficult to pay high salaries for HR positions.

HR personnel with an annual salary of less than 20 often find it difficult to provide unique insights in aspects such as recruitment and performance management.

This is because small companies often cannot offer salary and benefits comparable to those of larger companies, making it difficult to attract well-paid HR talent.

Lack of unique insights from small company HR

Another issue is HR’s unique perspective.

HR should be the talent management expert in the company, but in small companies, HR may lack sufficient opportunities to accumulate these insights.

Because small companies have limited employee sizes, HR may not have enough variety and challenges to develop unique HR skills.

The mismatch between high-paid HR and small companies

Most small companies can only afford HR with an annual salary of no more than 10, but at the same time expect them to independently undertake recruitment, performance management and other human resources tasks.

However, this expectation is difficult to achieve in practice.

Highly paid HR professionals often expect a certain size of team and resources to support their work, which may not exist in smaller companies.

How to replace HR in small companies

Since small companies may not be suitable for hiring HR, what alternatives should we consider?

Interview

• Recruitment interviews are an important job of HR, but in small businesses, the boss himself and the supervisor can be jointly responsible for this task.
• Through interviews, they can get to know the candidates better and ensure they fit the company's culture and needs.
• Additionally, an assistant can be available to assist in screening resumes using standardized interviewing methods.

performance management

• Performance management is not just the work of individual employees, it is also a process of business understanding and problem solving.
• In a small business, bosses and supervisors can be jointly responsible for performance management, ensuring that employees' work is aligned with achieving business goals.
• Performance management should be viewed as a tool for executives to solve business problems, not just a routine job.

Payroll management

• When it comes to payroll management, the finance department can provide assistance.
• They can help calculate salaries, benefits and bonuses and ensure the company's compensation policies are sound and compliant with regulatory requirements.

The omnipotence of the mini-boss

Finally, let’s talk about the versatility of small business owners.

The boss of a small company is supposed to be a generalist, able to assume multiple roles.

In addition to the tasks mentioned above, they also need to learn some legal knowledge related to HR to ensure that the company's operations are legal and compliant.

Conclusion

Overall, whether a small business needs to set up an HR department is a complex question that depends on the specific circumstances of the company.

With a staff size of 50 or less, it's difficult to pay well-paid HR staff, and they may not be able to provide unique insights.

However, small companies can still handle human resource issues effectively by allocating tasks appropriately and relying on the generalist abilities of bosses and supervisors.

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