Have you ever worked for a small company?  Having to share the internal operations amongst yourselves.  One day you are the company CEO, the next day, you are the head of accounting.  The next you are the last person on the production line doing quality control.

The reason internal operation is so challenging is that you aren’t just counting products on a shelf.  You’re managing people, and people are multi-dimensional complex characters.  You can’t just treat them like numbers.

It’s getting harder for businesses to balance resources between growing, servicing their existing customers and keeping up with the demands of internal operations.  The hardest-hit companies are the small to medium size ranging from 10-200 employees, where founders and executives are still wearing multiple hats.

However, these companies are being expected to adhere to the same regulations and compliance of much larger employers. These larger organisations have human resources dedicated to managing these internal operations.

We are going to look at the three most significant challenges facing the small to medium business owners who also have to manage the human resources department.

Increased compliance and administration requirements

From the tax to labour regulations, employers are being asked to keep track of more information and report it in increasingly sophisticated ways. 

This level of due diligence is tough to keep up with, considering the rest of the tasks business owners have on their plate at any given time.

Lack of dedicated resources

Lack of resources is especially hard for small to medium size companies who tend to have thin HR departments if any at all. 

Just keeping up with the fast-changing requirements from taxes to social security or superannuation is more than a full-time job that many companies can’t afford to sustain.

Lack of innovative HR technology

The majority of small to medium size companies HR operations are working out of filing cabinets, spreadsheets and outdated paper-heavy workflow documents. 

The sales team has a Customer Relationship Management software, the finance team has accounting software, the marketing team has Google analytics and other appropriate platforms, but what does HR have? 

Being able to remove the transaction paper-heavy workflows and managing everything through a modern HR technology solution is where everything is going.  It is more strategic and focused on high-value tasks, not just paperwork and data entry.


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