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Role Of HR In Big And Small Businesses


The main role and responsibility of the HR department of all companies are to operate with the well-being of everyone in the company. But their approach to doing so can be different based on the size of the company, for instance, the way a small business looks at the role of the HR department of its organization can be different from the way a big organization does it.

So even though the designation and job role may appear the same, there is indeed a vast difference in their work approach. Moreover, many small businesses don’t even have an HR team of their own, they rely on HR for small businesses in UK because it gives them the ability to have a fully operating HR department without even spending much on hiring and training many employees.

Some of the other factors that work as a differentiator between the role of an HR department of a small business and a large business are listed below.

  • Level Of Responsibility – The bigger the firm, the bigger the responsibility, so naturally there is a lot more that an HR department has to look at a large business than it has to in a small-scale business. In small businesses, the roles get distributed in such a way that one person tends to play many roles. Well, that is different in the case of a large firm as everyone is assigned different roles.
  • Resources – This is the most common and obvious difference between a small and large business. A small-scale business tends to have very limited resources and that also has an effect on the HR department. Small businesses find it hard to spend money on a skilled and packed HR department and this may cause them to lose in many aspects. But that has changed a lot in the last few years as many businesses are providing HR services in UK to those businesses which can’t afford much to have an HR department of their own. These service-providing businesses do it all, they control and manage employee training, team building, a long–term work policy development, and many more to help the growth of the business. Whereas this is very different in the case of large businesses as they have an in-house HR department that looks into all the aspects of business development. 
  • Organizational Structure – A large organization has the resource to have a well-established and formal organizational structure and that also reflects in their HR department. But that is very different in the case of small businesses as they lack the resource and skills to have a well-established structure. So, they often tend to play it smart and hire an HR for small businesses in UK, which basically does all the jobs of an HR department but at a much lower rate.

Things Hrs Must Do In Small Businesses

  • Understand And Abide By The Employment Law – Employment laws are set by the parliament to ensure an ethical and safe working environment within an organization and not following these can get one into big trouble. If you are a small business owner then it is your responsibility to understand all the laws related to employment and if you lack understanding in any part then you can surely take the help of the businesses which provide HR services in UK. The law covers all aspects of employee recruiting, safety, compensation, and benefits.
  • Hire The Right People – Initially, all organizations are small businesses, it is the people working and their skills that determine the growth of the businesses. So naturally, as a business owner, one thing that you should have a clear idea about is understanding which job applicants are the right fit for your company. Hire efficient employees who will be willing to give their 100% to push your business on the path of success. Always remember that it is the people of an enterprise that works as the biggest driving force in its growth.
  • Offer Competitive Pay – Don’t stay back from offering competitive pay to hire new employees. The key is to find out the appropriate pay and then stick to it and customize it with several benefits in an attempt to attract the most deserving employees. Always remember that good pay is one of the most effective ways of engaging with the right fit for your company. Moreover, it also motivates an employee to perform well and contribute 100% of their efficiency.
  • Have A Clear Employment Policy – Employment policies play an extremely important role in running a successful business. If you find difficulty in making one for your new small business then you can take the help of any company that provides HR services in UK as they have the skills of doing the same. Not having an employment policy can result in a lot of confusion among the employees and this confusion may result in hampering their productivity, causing inefficiency, and even legal problems, as a business owner you would definitely not want that. Hence, create an employment policy beforehand to avoid all problems.

Key Findings

The HR department is the most important department of any company, though the scale of its responsibility may differ based on the size of the business, the basic roles remain the same. If you have a small business of your own and are struggling to have a skilled and efficient HR department due to a lack of resources then you can definitely take the help of businesses that provide services of HR for small businesses in UK.  These businesses perform all the roles of an in-house HR but at a much lower overall cost. 

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