--- title: 5 Reasons Human Resources is a Must for Small Businesses description: A human resources department is a must for all companies. Find out the top 5 reasons HR is a must, and the most cost-effective ways to implement HR. image: https://blog.axcethr.com/hubfs/Stock%20images/Group%20of%20casual%20artists%20working%20on%20designs%20in%20the%20creative%20office.jpeg --- - [Client Portal](https://www.axcethr.com/client-services/) - [Employee Login](https://www.axcethr.com/client-services/) [![AxcetHR Solutions Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png)](https://www.axcethr.com/) - [About Us](https://www.axcethr.com/about-us/) - [Corporate Philantropy](https://www.axcethr.com/about-us/corporate-philanthropy/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Values and Culture](https://www.axcethr.com/about-us/values-and-culture/) - [Kansas PEO](https://www.axcethr.com/about-us/kansas-peo/) - [Missouri PEO](https://www.axcethr.com/about-us/missouri-peo/) - [Careers](https://axcethrsolutions.prismhr-hire.com/) - [Why Axcet](https://www.axcethr.com/why-axcet/) - 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[Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [All about COVID-19 in the Workplace](https://blog.axcethr.com/topic/covid19) - [Kansas & Missouri HR News](https://blog.axcethr.com/topic/kansas-and-missouri-hr-news) - [Kansas City Interest News](https://blog.axcethr.com/topic/kansas-city-interest-news) - [PEO/HRO](https://blog.axcethr.com/topic/peo) - Choose Topic: - [Human Resources](https://blog.axcethr.com/topic/human-resources) - Payroll Administrations - [Employee Safety & Risk Management](https://blog.axcethr.com/topic/employee-safety-risk-management) - [Employee Benefits](https://blog.axcethr.com/topic/employee-benefits) - [PEO](https://blog.axcethr.com/topic/peo) # 5 Reasons Human Resources is a Must for Small Businesses By [Gerald Diddle](https://blog.axcethr.com/author/gerald-diddle) on [Feb 14, 2019](https://blog.axcethr.com/5-reasons-human-resources-is-a-must-for-small-businesses) 3 min read [0 comment(s)](https://blog.axcethr.com/5-reasons-human-resources-is-a-must-for-small-businesses#comments-listing) Share this: - - - - [whatsapp://send?text=https://blog.axcethr.com/5-reasons-human-resources-is-a-must-for-small-businesses](whatsapp://send?text=https://blog.axcethr.com/5-reasons-human-resources-is-a-must-for-small-businesses) - [mailto:?subject=5%20Reasons%20Human%20Resources%20is%20a%20Must%20for%20Small%20Businesses&body=https://blog.axcethr.com/5-reasons-human-resources-is-a-must-for-small-businesses](mailto:?subject=5%20Reasons%20Human%20Resources%20is%20a%20Must%20for%20Small%20Businesses&body=https://blog.axcethr.com/5-reasons-human-resources-is-a-must-for-small-businesses) ![5 Reasons Human Resources is a Must for Small Businesses](https://blog.axcethr.com/hs-fs/hubfs/Stock%20images/Group%20of%20casual%20artists%20working%20on%20designs%20in%20the%20creative%20office.jpeg?width=1000&name=Group%20of%20casual%20artists%20working%20on%20designs%20in%20the%20creative%20office.jpeg) As the owner of a small business, one place you may consider cutting spending is on not having a human resources department. After all, you can handle the hiring and manager training, and your managers can cover new hire training, performance reviews and even employee terminations. But not so fast. Unfortunately, this is never a recipe for success. While hiring, training and firing are all within the HR realm, there are also a lot more duties and they can get complicated. From employee benefits administration and workers’ compensation, to payroll and payroll tax, there’s a lot to know. And don’t forget about compliance. Everything you do must be compliant with the ever changing state and federal laws. But there’s even more. Through HR best practices, an experienced Human Resources professional will work hard to improve employee satisfaction, increasing employee loyalty, productivity and engagement. ## 1. Strategic Recruiting Last year was the first time there were more jobs than people out of work, and small business owners everywhere felt the effects of the tight labor market. With the spotlight not only on recruiting top talent, but also retaining high performing employees, organizations had to be strategic if they wanted to remain competitive in the recruiting world. An experienced human resources professional is responsible for having strategic recruiting, systematic hiring, expert interviewing and new hire monitoring processes in place, which work together to reduce the likelihood of making a bad hiring decision. [![New call-to-action](https://no-cache.hubspot.com/cta/default/2652187/f6467c3b-cf0e-43cb-826f-21514f93b087.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/f6467c3b-cf0e-43cb-826f-21514f93b087) ## 2. Streamlining the Onboarding Process We’ve all heard it, first impressions are everything. And when it comes to employee onboarding, this couldn’t be more true. The onboarding experience can either set your new hire up for success or an early departure from your company. One study found 69 percent of employees are more likely to stay with a company for three years if they experienced a great onboarding process. But what makes an onboarding experience positive? For starters, it’s more than simply handing your new hire a copy of your employee handbook and benefits brochure. And a seasoned HR consultant knows it starts well before the employee’s first day on the job. In fact, a comprehensive onboarding process can last up to 12 months and is one of the most important processes in place to ensure a new hire is productive and content at your organization.> As businesses grow, accessing [human resources support for small businesses](https://www.axcethr.com/services/human-resources/) helps owners stay compliant, manage employees effectively, and focus on running the company. [![New call-to-action](https://no-cache.hubspot.com/cta/default/2652187/64ce2219-acef-4f8b-bb0e-20aa27a6014d.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/64ce2219-acef-4f8b-bb0e-20aa27a6014d) ## 3. Managing Benefits and Time Off Employee benefits often go hand-in-hand with recruiting and retaining top talent. Unfortunately, offering the [right mix of benefits](https://info.axcethr.com/right-mix-of-medical-plans) can feel like you’re navigating a minefield. In addition to medical plans, PTO and other standard employee benefits, newer, non-traditional benefits are gaining in popularity among job seekers. Your HR partner researches, recommends and administers the best employee benefits for your business’ budget. ## 4. Resolving Interoffice Conflicts With diverse personalities, experience levels and work styles, interoffice conflicts are inevitable. A talented HR professional is not only trained to handle relations between employees, but also between management and employees. They are able to identify employee relations matters, resolve them and restore a positive work environment for everyone. ## 5. Handling Legal Concerns As a small business owner, more than likely, you’re an expert in your industry. That said, you’re probably not an employment law expert, nor should you be. But one misstep could result in an expensive lawsuit, putting your business and reputation at risk. Experienced HR professionals know the ins and outs of employment and labor laws, helping you stay compliant. ## **[![HR Services Powered by Industry-Certified Professionals](https://no-cache.hubspot.com/cta/default/2652187/interactive-184586106269.png)](https://blog.axcethr.com/hs/cta/wi/redirect?encryptedPayload=AVxigLJttM60oIzuJ84Eyvygk46iffIJW0yiag0YfxtwHmJr4FvoRavfq%2F7SGUB4vh153PGoJYxbOa3z14mX%2FGmXOR7%2FbpFLHAnDedh0Bc6KQmiPRdIDYYccUtlsZXiZwSa0i24EnuIERXahQuftxZTeLEh4MF5iiqcoJKmh3CgD0BQSGuDyvl%2F9pbpXzR98O6i%2FpjRI4DrtGtA%2BPTMtxnZI2935QISVpTHjAn313rnFfx%2Fe3ayas7DwhMmp3hQc&webInteractiveContentId=184586106269&portalId=2652187)** ## **Why Outsourcing HR May Be the Smartest Move for Your Business** Human resources functions occur at every company, regardless of the size. The question should never be whether HR is an option, but rather how can your business implement it effectively. Many small and medium-sized business owners have found outsourcing HR to be more cost-effective than an in-house department. When you outsource HR to a professional employer organization (PEO), like Axcet, you’ll gain access to a team of experienced payroll, payroll tax, HR, employee benefits, risk management and workers’ compensation professionals. [*If you aren’t sure what a PEO is, or how it can help your business, check out this blog.*](https://blog.axcethr.com/what-is-a-peo-and-how-can-it-help-your-business) [![New call-to-action](https://no-cache.hubspot.com/cta/default/2652187/9758b087-ec74-438d-a7b6-270ed3cca6da.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/9758b087-ec74-438d-a7b6-270ed3cca6da) [![Gerald Diddle](https://blog.axcethr.com/hs-fs/hubfs/Jerry2.jpg?width=80&height=80&name=Jerry2.jpg)](https://blog.axcethr.com/author/gerald-diddle) Written by #### [Gerald Diddle](https://blog.axcethr.com/author/gerald-diddle) Jerry Diddle is the Founder and President of Axcet HR Solutions and a pioneer in the Professional Employer Organization (PEO) industry. Since launching Axcet in 1988, Jerry has been dedicated to helping small and mid-sized businesses simplify HR, reduce risk, and focus on growth through a comprehensive, high-touch service model. At a time when the PEO concept was still emerging, Jerry recognized its potential to transform how businesses manage their people. He built Axcet on a relationship-driven approach—one that emphasizes responsiveness, personalized support, and long-term client partnerships. That philosophy continues to shape the company today, guiding its commitment to delivering practical HR solutions with a human touch. Jerry's leadership has helped establish Axcet as a trusted partner for businesses across Kansas and Missouri, offering expertise in human resources, payroll administration, employee benefits, workers' compensation, and workplace safety. His focus on service excellence and continuous improvement has played a key role in building a strong, experienced team dedicated to supporting clients at every stage of growth. Originally from Washington, D.C., Jerry is a graduate of the University of Maryland and brought his entrepreneurial experience to Kansas City, where he saw an opportunity to introduce a better way for businesses to manage HR. Through his writing, Jerry shares insights on the evolving role of PEOs in supporting today's employers. Read more [View all posts →](https://blog.axcethr.com/author/gerald-diddle) ### Get HR Updates ### Table of Contents ### Related Resources - [services Human Resources](https://www.axcethr.com/services/human-resources/) - [services HR Compliance](https://www.axcethr.com/services/human-resources/hr-compliance-specialist/) #### [What Employees Really Want from Work ![What Employees Really Want from Work](https://blog.axcethr.com/hubfs/Stock%20images/startup%20business%2c%20software%20developer%20working%20on%20desktop%20%20computer%20at%20modern%20office-1.jpeg)](https://blog.axcethr.com/what-employees-really-want-from-work) #### [![ACA Employer Penalties: IRS Letter 226J](https://blog.axcethr.com/hubfs/Stock%20images/Colleagues%20reading%20documents%20in%20an%20office-1.jpeg) ACA Employer Penalties: IRS Letter 226J](https://blog.axcethr.com/aca-employer-penalties-irs-letter-226-j) ## Let us know what you think... ![AxcetHR Blog](https://blog.axcethr.com/hubfs/AxcetHR2021%20Blog/axcethr_logo_white%20(1).png) - [Why Axcet](https://www.axcethr.com/why-axcet/) - [What We Stand For](https://www.axcethr.com/about-us/what-we-stand-for/) - [Expertise](https://www.axcethr.com/expertise/) - [Employee Benefits](https://www.axcethr.com/services/employee-benefits/) - [Human Resources](https://www.axcethr.com/services/human-resources/) - [Payroll Services](https://www.axcethr.com/services/payroll-and-tax-administration-services/) - [Risk Management](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/) - [Meet the Team](https://www.axcethr.com/about-us/meet-the-team/) - [Subscribe to Latest Resources](https://www.axcethr.com/subscribe-to-the-latest-resources/) - [Resource Library](https://www.axcethr.com/expertise/resource-library/) - [\[ Client Portal \]](https://www.axcethr.com/client-services/) - - - - - Search for: Copyright © 2023 Axcet HR Solutions – Kansas City's PEO Since 1988 | [Privacy Policy](https://www.axcethr.com/privacy-policy/) | [Terms and Conditions](https://www.axcethr.com/terms-conditions/) | [**Join our Team – Careers »**](https://axcethrsolutions.prismhr-hire.com/) 10975 Grandview Drive Suite 200, Corporate Woods Building 27, Overland Park, KS 66210 | Call us: 913-383-2999 *The IRS does not endorse any particular For more information on [certified professional employer organizations](https://www.axcethr.com/why-axcet/certified-peo/), go to [www.irs.gov](https://www.irs.gov).* Remove cookies ![](https://dc.ads.linkedin.com/collect/?pid=43031&fmt=gif) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Gerald Diddle", "url" : "https://blog.axcethr.com/author/gerald-diddle" }, "dateModified" : "2026-04-07T16:25:28.947Z", "datePublished" : "2019-02-14T19:03:14.000Z", "headline" : "5 Reasons Human Resources is a Must for Small Businesses", "image" : [ "https://blog.axcethr.com/hubfs/Stock%20images/Group%20of%20casual%20artists%20working%20on%20designs%20in%20the%20creative%20office.jpeg" ], "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/5-reasons-human-resources-is-a-must-for-small-businesses", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hubfs/_logo_axcethr_primary.png" }, "name" : "Axcet HR Solutions" } } ``` ```json { "@context" : "https://schema.org", "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "address" : { "@type" : "PostalAddress", "addressCountry" : "US", "addressLocality" : "Kansas City", "addressRegion" : "MO" }, "aggregateRating" : { "@type" : "AggregateRating", "bestRating" : "5", "ratingValue" : "5", "reviewCount" : "100" }, "areaServed" : { "@type" : "Country", "name" : "United States" }, "award" : [ "IRS Certified Professional Employer Organization (CPEO)", "Award-Winning HR Solutions Provider", "SHRM Certified HR Professionals", "HRCI Certified HR Professionals" ], "contactPoint" : { "@type" : "ContactPoint", "areaServed" : "US", "availableLanguage" : "English", "contactType" : "Customer Service" }, "description" : "Award-winning Professional Employer Organization (PEO) providing comprehensive HR solutions, payroll services, employee benefits, and risk management to small and mid-sized businesses. 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After all, you can handle the hiring and manager training, and your managers can cover new hire training, performance reviews and even employee terminations. But not so fast. Unfortunately, this is never a recipe for success. While hiring, training and firing are all within the HR realm, there are also a lot more duties and they can get complicated. From employee benefits administration and workers’ compensation, to payroll and payroll tax, there’s a lot to know. And don’t forget about compliance. Everything you do must be compliant with the ever changing state and federal laws. But there’s even more. Through HR best practices, an experienced Human Resources professional will work hard to improve employee satisfaction, increasing employee loyalty, productivity and engagement. 1. Strategic Recruiting Last year was the first time there were more jobs than people out of work, and small business owners everywhere felt the effects of the tight labor market. With the spotlight not only on recruiting top talent, but also retaining high performing employees, organizations had to be strategic if they wanted to remain competitive in the recruiting world. An experienced human resources professional is responsible for having strategic recruiting, systematic hiring, expert interviewing and new hire monitoring processes in place, which work together to reduce the likelihood of making a bad hiring decision. 2. Streamlining the Onboarding Process We’ve all heard it, first impressions are everything. And when it comes to employee onboarding, this couldn’t be more true. The onboarding experience can either set your new hire up for success or an early departure from your company. One study found 69 percent of employees are more likely to stay with a company for three years if they experienced a great onboarding process. But what makes an onboarding experience positive? For starters, it’s more than simply handing your new hire a copy of your employee handbook and benefits brochure. And a seasoned HR consultant knows it starts well before the employee’s first day on the job. In fact, a comprehensive onboarding process can last up to 12 months and is one of the most important processes in place to ensure a new hire is productive and content at your organization.> As businesses grow, accessing human resources support for small businesses helps owners stay compliant, manage employees effectively, and focus on running the company. 3. Managing Benefits and Time Off Employee benefits often go hand-in-hand with recruiting and retaining top talent. Unfortunately, offering the right mix of benefits can feel like you’re navigating a minefield. In addition to medical plans, PTO and other standard employee benefits, newer, non-traditional benefits are gaining in popularity among job seekers. Your HR partner researches, recommends and administers the best employee benefits for your business’ budget. 4. Resolving Interoffice Conflicts With diverse personalities, experience levels and work styles, interoffice conflicts are inevitable. A talented HR professional is not only trained to handle relations between employees, but also between management and employees. They are able to identify employee relations matters, resolve them and restore a positive work environment for everyone. 5. Handling Legal Concerns As a small business owner, more than likely, you’re an expert in your industry. That said, you’re probably not an employment law expert, nor should you be. But one misstep could result in an expensive lawsuit, putting your business and reputation at risk. Experienced HR professionals know the ins and outs of employment and labor laws, helping you stay compliant. Why Outsourcing HR May Be the Smartest Move for Your Business Human resources functions occur at every company, regardless of the size. The question should never be whether HR is an option, but rather how can your business implement it effectively. Many small and medium-sized business owners have found outsourcing HR to be more cost-effective than an in-house department. When you outsource HR to a professional employer organization (PEO), like Axcet, you’ll gain access to a team of experienced payroll, payroll tax, HR, employee benefits, risk management and workers’ compensation professionals. If you aren’t sure what a PEO is, or how it can help your business, check out this blog.", "author" : { "@id" : "https://blog.axcethr.com/author/gerald-diddle#author", "@type" : "Person", "name" : "Gerald Diddle", "url" : "https://blog.axcethr.com/author/gerald-diddle" }, "dateCreated" : "2019-02-14", "dateModified" : "2026-04-07", "datePublished" : "2019-02-14", "description" : "As the owner of a small business, one place you may consider cutting spending is on not having a human resources department. After all, you can handle the hiring and manager training, and your managers can cover new hire training, performance reviews and even employee terminations. But not so fast. Unfortunately, this is never a recipe ...", "editor" : "Gerald Diddle", "genre" : "Human Resources and Employee Management", "headline" : "5 Reasons Human Resources is a Must for Small Businesses", "image" : "https://cdn2.hubspot.net/hubfs/2652187/Stock%20images/Group%20of%20casual%20artists%20working%20on%20designs%20in%20the%20creative%20office.jpeg", "keywords" : "PEO, Human Resources, Payroll, Recruiting & Hiring, Compliance, Talent Acquisition, when to outsource hr, human resource management, napeo, outsource HR, Kansas City PEO, professional employer organization, HR, outsource human resources, HR Small Business, hr company, full service hr company, why use a PEO, what is a professional employer organization, professional employer organization pros and cons, HR Compliance, HR compliance issues, human resources compliance, HR issues facing small businesses, HR issues in small business, HR Outsourcing, human resources outsourcing small business, why outsource HR, why companies outsource hr, why choose a PEO", "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/5-reasons-human-resources-is-a-must-for-small-businesses", "@type" : "WebPage" }, "publisher" : { "@id" : "https://www.axcethr.com/#organization", "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.axcethr.com/hs-fs/hubfs/axcethr_logo_white.png?width=225&name=axcethr_logo_white.png" }, "name" : "Axcet HR Solutions" }, "url" : "https://blog.axcethr.com/5-reasons-human-resources-is-a-must-for-small-businesses", "wordCount" : "4514" } ``` ```json { "@context" : "https://schema.org", "@type" : "BreadcrumbList", "itemListElement" : [ { "@type" : "ListItem", "item" : "https://www.axcethr.com/", "name" : "Home", "position" : 1 }, { "@type" : "ListItem", "item" : "https://insights.axcethr.com/", "name" : "Insights", "position" : 2 }, { "@type" : "ListItem", "item" : "https://insights.axcethr.com/tag/peo", "name" : "PEO", "position" : 3 }, { "@type" : "ListItem", "item" : "https://blog.axcethr.com/5-reasons-human-resources-is-a-must-for-small-businesses", "name" : "5 Reasons Human Resources is a Must for Small Businesses", "position" : 4 } ] } ```