Thu. Apr 18th, 2024

How to Build an HR Team in a Small Company

By samanvya Dec 10, 2022

A small scale venture or enterprise is usually one with limited resources, finances, number of employees, and materials. While the criteria may change for the defining features that determine what a small enterprise is and what is not, they are privately owned corporations, partnerships, and sole proprietorships. 

Like any venture for profit, small enterprises have their workforce, and to manage their workforce, a Human Resource department is required that is adequate enough to manage their affairs. 

People who often dream about having their own business usually start small. With time, their companies can grow into potentially an empire. According to small business indicators mentioned at, there are over 30.7 million small businesses in the USA. 

In this post, I am discussing some of the ways through which you can build your own HR team for a small business. 

How to Build Your Talented HR Team 

Here are twelve ways to build an efficient HR workforce:

  • Create Job Profiles

It is important to understand that without bifurcation of tasks into proper job profiles, your business operations can suffer and would fail to deliver anticipated efficiency. There have to be clear guidelines regarding goals and objectives along with daily targets that an employee must achieve. 

Creating job profiles allow you to conduct your operations more appropriately. Every single person in your team is designated duties and undertakings for which they can be held accountable for in the future. 

Furthermore, they also offer a career pathway for an employee to follow, providing the motivation needed to perform to the best of their abilities and score promotions. 

  • Build a Hierarchy

Without the ability to recognize levels of leadership within the organization, employees would fail to follow authority, and this would lead to poor management of given responsibilities. By building a hierarchical structure for your organization, the most significant benefit you are giving yourself is a clear line of power within the workforce. 

This means that they can also exert their authority over their subordinates and choose to either reward or penalize their behaviors or performances. Having a robust hierarchical structure is extremely important for any business to succeed. 

Without it, employees would not be able to recognize the chain of command, and chaos in the workplace may ensue due to a lack of personnel with the ability to make timely decisions.   

  • Devise Salary Structure

Obviously, the biggest incentive for any workforce to dedicate themselves for continuous hours straight throughout the working days of the week is to attain some form of remuneration for their efforts. 

Payday is hence a day of celebration where hard work is rewarded, and workers get their designated salary. However, without a salary structure, things can be pretty ambiguous, especially for the worker’s end. 

We all look forward to the day we get our monthly/weekly/daily wages. The salary structure also shows your fairness in rewarding your workers and employees about their level of skills and expertise.       

  • Compensation & Benefits

Many employees nowadays often decided to work for a company based on the various benefits and compensations which they might offer apart from salary or wages. This may include health insurance, sick leaves, bonuses, loyalty rewards, and much more. 

If you want to build a capable HR Team for your small company, then it is highly recommended that you put these measures into work and address them appropriately. Not only will it make new talent more interested in joining your workforce, but it will also spread goodwill regarding your company through positive word of mouth. 

  • Policies, Rules, & Regulations

Terms of services, employee contracts, policies, and various other documents that can help you govern your operations without any redundancies or shortcomings are crucial for your business. Your HR Team needs to sit down and dedicate their time to develop policies that are in lieu of the vision and mission statement of the establishment. Plus, the HR professionals are also responsible for the conduct of your employees during office hours. 

These do’s and don’ts will not only prevent misconduct but also keep the work standards at your establishment up to an acceptable mark. In case if someone chooses to transgress from the policies or go against their contract, then the management can take corrective actions without feeling any remorse.  

  • Comprehend Your Staffing Needs

It is paramount that your HR department is able to identify the strength of workers required at your organization. If your HR is unable to determine the staffing needs for your business venture, then there can be two major problems. 

One is that they might end up hiring too little workforce required for running the operations. This is known as a condition called understaffing. On the other hand, they might hire an abundance of the workforce, which is more than necessary for running the operations. This is known as overstaffing. 

In both situations, your teams will suffer as in understaffing, they are overwhelmed with the workload, and in overstaffing, you are simply incurring additional cost and without producing additional results or output. 

  • Consider Hiring HR Assistants

HR assistants can be of great support to managers and directors of your HR department. HR assistants can be trained to overlook departmental duties even in the case where managers or supervisors are absent. We are all human beings, and everyone has a tipping point. 

Furthermore, HR assistants can help divide your tasks and make them more manageable. There is a definite division of labor, and more can be achieved in the same amount of time. HR assistants are thus a viable investment for your HR team. Plus, if your senior HR managers are about to retire, your HR assistants can be trained in advance to replace them when the time comes. 

  • A Dedicated Recruiter

While HR is tasked with the responsibility to recruit new talents for the company, having a dedicated recruiter offers you much more practicality. Small businesses showing positive growth in the coming years should consider making this investment as this will help them find a professional who can be dedicatedly allocated to the process of recruiting new members to your team. 

This will allow other HR officers and managers to perform on their tasks without any interruptions, and thus they would be able to manage their duties more effectively. The dedicated recruiter will help clear their schedules and allow the rest of your HR department officials to perform without disturbances.  

  • Departmentalization

Another important task that your HR needs to deliver is to create specific departments that will manage specific and broads areas of errands and responsibilities that contribute towards the operations of your business. Common departments include Accounting, Finance, Marketing, Sales, HR, and Administration. 

Each department has its own set goals and objectives, and together they can support the operations of your business. The sum of their accomplishments helps move your company forward. 

However, this division is essential as each department specializes according to its own set of tasks and undertakings. Thus they can deliver work expertly.

  • Administration & Roles

Administration roles within a company are concerned with offering technical support for employees. This may include handling of office supplies, managing day to day procurements of items used by your staff including teabags, coffee, and even toiletries. 

They make sure that the infrastructure on which your business stands keep on working in a frictionless manner. Hence if there are any issues with hardware or other utilities, they can be informed to take corrective actions and provide remedies to the concerns and problems of employees. 

Some might consider the administration department playing mundane roles; however, without their support, no business can actually survive.

  • Employee Training & Development

Every business goes through changes and experience changes with time. Technology progresses forward, and there comes a time where your workforce is required additional training and development of skill sets that can allow them to compete with rivals within the industry. 

The HR department is, therefore, reminded to make sure that the workforce can be adequately trained most cost-effectively. They create budgets and may even acquire new hardware and technology to equip the workforce so that they can perform at a better rate. 

Plus, there are times where employees have to be presented with professional development opportunities that can assist them in performing their duties well. All of this is meant to be undertaken by the HR department.    

  • Investment in Software

We are currently living in a world where technology and the internet have progressively shape the entire ecosystem of the corporate world around us. Apart from hardware and equipment, many businesses are also investing in buying or creating valuable software that can manage their operations. 

These can include database management systems, ERP (Enterprise Resource Planning), and CRM (Customer Relationship Management), to name a few. However, the purchase and installation of software are neither cheap nor is it a walk in the park. 

The HR department thus needs to discuss in taking such a huge and costly decision and provide the leadership with a proper feasibility report that justifies such an action.   


If you want your small businesses to grow and expand, then having a fully functional and capable HR department is exceptionally vital. Not only can they allow the leadership to make better decisions, but they are also the gatekeepers and recruiters of your company. 

HR also ensures that your employees stay motivated and continue to serve your cause with relentless and unwavering zeal. With a proper HR department for your company, there are definitely going to be issues such as reduced employee retention, lack of motivation in the workforce, and the inability to introduce appropriate work culture to your office. 

Author Bio

Claudia Jeffrey currently works as a Sr. Research Analyst at Crowd Writer. During her free time, she likes to indulge herself in various philanthropic activities.  She is also a Trainer at Assignment Assistance where students can acquire help from professionals that have expertise in their subject matter.

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