Before all else, give a tap to your back for owning a business! Not all get to live your life. But, the concern here is that it is a smaller one at present. It is yet to stir up. 

Regardless of it (the business) having a lot of potentials and a performing team behind, there are few things you need to know and ensure not to forget. What are them?

Your business’s most valuable asset i.e., employees, must be handled with extra care. Your employees are everything for you. Especially for you – the small business owners! So, manage them well. But how to? 

Here comes HR (Human Resource).


  • What is Human Resource?


Human resource can be referred as both the human and department who is responsible for managing workforce at any business and and their requirements. An appointed can be responsible for maintaining healthy environment at workplace and providing best resources when needed.

Technically, Human resource department is an isolation between employers and employees.


  • What are Some Major Parts of HR Management? 


  • Talent Recruitment
  • Successful on-boarding with Tech-training
  • Monthly payroll
  • Employee engagement
  • Creating positive culture with activities
  • Ensuring departmental transparency, and much more…


Now, there must be a question arising in your mind – why is HR necessary for smaller businesses or startups? For larger enterprises, bulk-hiring occurs seldom times. For this, a team of HR is required. While for smaller firms where the total team size is 10, the need for HR may not look so needful. 

But, to ensure regular inputs from each teammate, keeping the team on the same page, hiring interns for a particular job, etc. you may need an HR (or maybe an HR intern).

A dedicated human resource department helps you have better communication with other departments and keep every action on-page to avoid confusion in the future. Hence, whether it is a startup or MNC, HRD (Human Resource Department) is beneficial.

Also, the solution for the small business/startup owners could be outsourcing HR. But, FYI – there are some cons as well. So, what are those cons and pros of HR outsourcing for small scale businesses:


  • Pros of HR Outsourcing


  • It is cheaper than permanent employment
  • You can anytime switch to a better service
  • No bounds
  • No fixed wages
  • Don’t have to worry about a dedicated working place, etc.


  • Now the Cons


  • Could take upto a couple of months to fill any position
  • May not have proper training sessions
  • It lacks a mutual platform
  • May face difficulties in solving departmental issues, etc. 


So, what does it has to say? Outsourcing HR service may not be the right choice, but the HR intern or part-timers could work! Be it a small business or medium or even larger enterprises, they all need to streamline their workflows and bring all essential assets on the same page.


The only difference here is their budget. It would be a life-taking decision for management to hire a dedicated department of Human resources. One possible solution could be a pocket-friendly HRMS solution tailored for all your concerns like employee management, compliance management, timely payroll, accurate attendance, and all that you mention.


Also, they (HRMS) are available on monthly subscriptions, which makes it suitable for even startups!

Listed below are some prime features of an HRMS software that make it a perfect pick for any small business-


  • Cloud-Supportive


This is one such feature, which cannot be ignored. HR solution that can be accessed through any device, irrespective of your office location, could be one of your best assets. Also, the provided self-service portal lets its users communicate form anywhere. 


  • Automated Training Management


It brings your new hires closer to you. Activities amid training management, which includes creating blueprints, email templates, scheduling, etc. are made effortless through HRMS. Auto-generated templates do most of your job. 


  • Easy HR MIS Reporting


There are dozens of HR software for small businesses offering MIS reports in a couple of clicks. Easy drag and drop of user-customized reports for detailed HR MIS reports make this tedious job much easy for HR eliminating any manual intervention. 


  • Attendance Management


For a small business, maintaining attendance records for long could be tougher than it may seem. But, the HRMS, along with the integrated ESS portal or bio-metric machine, provides the accurate worked hours of each employee, saving you much of your precious time and efforts. 


  • All Crucial Expenses on Same Page


For an HR intern or any appointed person in such an entity, expense management may not seem as important as it is. This will invite a lot of errors. Also, manual-based expense management is not something we could bet into. 

For a business that has not yet reached half of its target, on experiencing mistakes in accounts may sink immediately. Why not leave it onto any automated expense management solution? One-stop claims management and multi-tier approvals are some factors that make it pick-able. 


  • Appropriate Employee Records


The organized HRMS solution brings all your employee data in one place. HR can now access any data also while they are traveling through the mobile app. 

It saves more time and supports remote working for both employer and employee. It provides a top-view of all on-goings with respect to any selected employee to make decisions easier and effective.

Also, in the case of startups, improper classification of workers could be an issue. It happens! But, the employee management portal of an HR software solves that too. Tracking and managing employee data and departments becomes a cakewalk after that.


That’s it. I hope your business outperforms!


Good Luck! 


  • Author bio


Ritik Singh writes about HRMS (on-premise and cloud based), ERP and CRM solutions. A young passionate content creator who writes for Pocket HRMS, a leading provider of cloud based HR Software AI-powered HR chatbot (smHRty) to small and mid-sized businesses across India.