In this article, we will explore some of the common HR issues in small business and explain how People Based Solutions can help with them. If you wish to learn more about such HR issues in small businesses, or any HR for your small business in general, call us today – our friendly experts can kindly help.

HR is the essential framework for the smooth running of all businesses, irrespective of their size. A business’s HR department deals with many activities crucial to its seamless daily operations, including recruitment, payroll, and health and safety. While HR is undoubtedly one of the most important functions of any business, it is often one of the smallest departments, particularly in smaller organisations.


What are the HR issues in small businesses?

Small businesses that lack the luxury of a dedicated HR department or specialist HR personnel can face many challenges in maintaining efficient HR operations. We’ve compiled a list of some of the most common HR issues in small business.

Finding time and resources for managing HR – Many small businesses do not have a dedicated HR department. This means the burden of HR responsibilities often falls upon the shoulders of management or other departments. As a result, HR tasks risk being side-lined or diverting employees from their core tasks.

Limited HR expertise – Without specialist HR personnel, many small businesses lack the knowledge and expertise required to manage HR functions effectively. This can mean even basic tasks and queries become time-consuming and costly as employees must frequently research and troubleshoot how to do things as they go along.

Retaining employees – Small businesses face stiff competition from larger organisations when it comes to employee benefits, salaries, and career advancement opportunities. HR plays an important part in managing employee benefits and incentives and developing a positive company culture to improve employee job satisfaction and help retain top talent.

Legal compliance – While legal compliance is crucial for all small businesses, some industries are more heavily regulated than others, and maintaining compliance can become complicated without the right level of expertise and resources available. HR plays an important role in creating, executing, and managing the policies and procedures that help small businesses maintain legal compliance. Non-compliance could expose a small business to significant risks, including financial penalties or legal action.

Recruitment – Your small business is only as good as its employees, so an effective recruitment process is key to its success. Small businesses that struggle to find and recruit the right staff could benefit from reviewing their recruitment process and documents to create a more tailored and streamlined process.

Conflict resolution – Conflict in the workplace must be resolved sensitively, fairly, and according to the relevant laws. If a conflict arises and you don’t have a conflict resolution process, you may wish to seek professional advice to protect your business legally.


Tackling HR issues in small business with People Based Solutions HR

Don’t let HR issues slow down your business’s growth. If your small business is struggling with any of the HR issues mentioned in this article, contact our HR professionals here at People Based Solutions.

At People Based Solutions, we offer HR services for small business needs of all types and requirements. Although we can operate nationally, we benefit from our local knowledge allowing us to provide small business HR services in Warrington, Manchester, Liverpool and all surrounding areas. Our local knowledge can be based on experience in dealing with certain areas of work to help with Health and Safety at your Warrington workplace. We can also travel around small businesses in Warrington, Liverpool, Manchester and beyond to cover our training and inductions.

For more information about our HR services for small businesses or to discuss your requirements, call us on 01925 202 217 or email


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