HR Risks for Small Business

Small businesses employ a significant amount of our population, yet Human Resources (HR) management is not often considered essential for these players and usually only thought of in the event that something has happened where they need immediate support or assistance.

In many ways though, small to medium business needs effective human resource management even more than larger companies, as its most valuable employees interact directly with customers and have a direct link to the growth of your business, the level of service you provide and overall to your reputation and brand.

Recruiting and training new employees is one of the most expensive tasks a business undertakes. Getting it right the first time is critical because employee turnover is costly, not just in real dollars, but in the loss of consistent customer service, which is crucial to building customer loyalty.

Here are some ideas to consider to help avoid common errors and to make your business as efficient and profitable as possible.

Hire Talent

The best job candidates are being well looked after and are finding they have more options from which to choose. If you normally have an interview process that takes a significant period of time it may be time to rethink how you go about it.

Enlist the help of HR experts to assist you and then make the time to interview candidates on one day. HR professionals can help establish the criteria candidates need to meet and the questions you should ask them. This will help with comparing candidates and ultimately your decision making process.

Reward and Recognise

Reward your hard-working employees for meeting the targets and goals you set them and give immediate feedback to all workers, which helps to both motivate them and grow your business. Rewards do not need to always be in the form of cash bonuses and raises. Think about staff get-togethers like BBQ’s, or give tickets to entertainment or sporting events.


Track your teams hours, pay, benefits, goals and accomplishments. Employees can easily get discouraged, if their pay is low and benefits small or non-existent.  A good HR system will assist with this.  There are simple, easy to use and affordable software options for small to medium business.

The ability to track performance and quickly reward high performers helps you retain talent and reduce your costs.

Outsource HR

Outsourcing HR makes sense as a way for smaller companies to transform and get expertise without hiring additional internal staff at high salaries and therefore remaining focused on their core business.

Contact us at or on (02) 8060 8561 for more information.