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What every business owner needs to know about HR management

By Nicole Comendador | |7 minute read
What every business owner needs to know about HR management

Human resources plays a key role in any business. But what exactly do you need to know about HR?

Many businesses think they can get by with just an employee scheduling system, but this isn’t true.

For your business to run smoothly, it’s important that all your employees are happy and engaged in their work— this means not only hiring people who are good at what they do but also making sure that everyone feels valued and appreciated in their jobs.


If there are any problems within the company or the business isn’t running very well, having a designated HR manager can help solve these problems more quickly.

In this article, we talk about human resource management and what business owners should know about it.

What is human resource management?

Human resource management focuses on efficiently managing the workforce, which is the asset of an organisation. It is a strategic approach to recruitment, onboarding, compensating, training, and engaging with employees. It provides structure to a company and handles all employee issues or concerns that may affect the business in achieving its goals and objectives.

HR basics every manager should know

Managers need to understand how HR works because they’ll need it if they want to have a good relationship with their employees. Here are some key things you should know about HR:

Create a work environment that encourages fun and productivity

People are more productive when they are happy. Take time to appreciate the hard work that your employees have done for the business. This shows that you’re paying attention, which in turn motivates them to continue to do so.

Ensure safety, fairness, and diversity in the organisation

A diverse workplace is a safe and inclusive environment that provides equal opportunities. It respects the differences of each employee, which can be beneficial to the business as they value their skills and the potential they bring.

Hire the best people and prioritise onboarding

Having the best people to do the job will strengthen the foundation of your business and help it grow. A detailed job description and posting them in the right places will make the hiring process efficient. Once you’ve hired the best candidate, it’s equally important to onboard them. Give them proper training for the tasks they’re about to do to keep up with the workflow and best practises.

Offer competitive compensation and benefits

For talented individuals to join your company, make sure that you offer an attractive salary package that is on par with the current market rates. Aside from the benefits that employees are entitled to, offering health insurance, a car plan, gym membership, and other benefits can also convince them to stay with the company.

Establish company policies and comply with employment laws

One of the most valuable tools a company can have is a company handbook. It contains all the rules and regulations that protect the welfare of the employees and the company. It helps maintain the structure of the business and easily resolve any conflict in the future.

When is a good time to introduce a dedicated HR professional to the business?

It’s easier than ever for businesses to manage their human resources needs through online platforms, but even the most sophisticated software can’t replace the importance of an experienced human resources professional on your team.

At the start, it is usually normal for everyone in the organisation to be ‘all hands on deck’ and have the general knowledge and skills to kickstart the operations of the business.

As business owners, you wouldn’t want to be spending a lot of time on administrative tasks. A manager handling HR tasks on top of business matters would be challenging and chew up time.

If you’re running a small business or a start-up that is growing to a certain number of employees, it’s time for you to have someone designated to handle all HR functions.

This is to ensure that all employee concerns are addressed, payroll will be processed on time, benefits are appropriately given, and that the business complies with all applicable labour laws.

Having a human resources department can also make the recruitment process more efficient once the business starts to have specialised roles and departments to accommodate its growth.

Modern HR

As industries and businesses continue to innovate, the HR industry must adapt to these changes as well. In the past few years alone, there have been a lot of changes to the way HR departments operate. Here are a few things to keep in mind:

Hybrid working models

The pandemic made many of us experience what working from home feels like. For some, it has become the best thing that ever happened to them, while others miss their workspace in the office.

According to a report by Microsoft, 66% of industry leaders are considering redesigning their workplace for hybrid work. While remote work is not for everyone, it has changed the game and is here to stay.

Healthy organisations

The uncertainty and shock brought by the pandemic have greatly affected the well-being of employees, and companies should focus on both the mental and physical health of their workforce.

The workplace should be a place where people feel safe and supported, which is more than a sympathetic pat on the back. People in an organisation need to be there for each other, regardless of their place in the company hierarchy.

Providing employees with resources in their time of need and letting them know what options their benefits package offers is a good way to start.

Diversity, Equity, and Inclusion

Diversity, equity, and inclusion (DEI) initiatives are how a company would address all forms of bias, discrimination, harassment, and other issues in the workplace.

It’s easy to design policies to be inclusive, but what makes businesses differ from each other is how they implement them. Some companies even have a designated DEI professional.

DEI is more than just hiring a diverse workforce — it’s also about making sure that they are paid and treated fairly.


Being a business owner or a manager with an understanding of how human resource management works can help you become a more effective leader in the workplace.

Having a system in place that is handled by an HR professional will not only make your life easier, but it will also give your employees the best experience possible.