--- title: "HR for Small Business: A Comprehensive Guide" description: Explore what HR for small business means. Learn core human resource functions, like hiring, compliance and benefits, and how they support business growth. image: https://blog.axcethr.com/hubfs/HR-for-small-business-_1200-%C3%97-628-px_-_1_%20(1).webp --- - [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/) - [Why Choose 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) Play Audio HR for Small Business: A Comprehensive Guide 6:27 # What Is HR for Small Business? Key Functions Explained By [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) on [Sep 13, 2023](https://blog.axcethr.com/understanding-hr-for-small-business-key-functions-and-benefits) 4 min read [0 comment(s)](https://blog.axcethr.com/understanding-hr-for-small-business-key-functions-and-benefits#comments-listing) Share this: - - - - [whatsapp://send?text=https://blog.axcethr.com/understanding-hr-for-small-business-key-functions-and-benefits](whatsapp://send?text=https://blog.axcethr.com/understanding-hr-for-small-business-key-functions-and-benefits) - [mailto:?subject=HR%20for%20Small%20Business:%20A%20Comprehensive%20Guide&body=https://blog.axcethr.com/understanding-hr-for-small-business-key-functions-and-benefits](mailto:?subject=HR%20for%20Small%20Business:%20A%20Comprehensive%20Guide&body=https://blog.axcethr.com/understanding-hr-for-small-business-key-functions-and-benefits) ![HR-for-small-business-_1_ (1)](https://blog.axcethr.com/hs-fs/hubfs/HR-for-small-business-_1_%20(1).webp?width=1200&height=800&name=HR-for-small-business-_1_%20(1).webp) Every industry and company has unique needs for their human resources (HR) team, but many common tasks and concepts unite HR needs across the business world. When we’re defining HR for small business, we’re generally discussing either the team members who serve as valuable resources to a company or the employee management function of a company. This second concept is also occasionally referred to as human resource management (HRM).   In this post, I’ll share an overview of what HR for small business looks like, the key HR functions that come into play at almost every company, and finally, when a small business should consider delegating or outsourcing HR.  [![HR Outsourcing Companies options, models and comparison](https://no-cache.hubspot.com/cta/default/2652187/9c0b268e-ff51-49f3-977b-eb203a9d7fe5.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/9c0b268e-ff51-49f3-977b-eb203a9d7fe5) ## What is Human Resource Management? Human resource management refers to the strategic and coherent approach to the management of an organization's most valuable assets: The people working there who individually and collectively contribute to the achievement of its objectives. HRM encompasses a range of functions and activities, including but not limited to recruitment and selection, training and development, employee compensation and benefits, performance management, employee relations, legal compliance, health and safety, HR strategy, culture and change management, and diversity and inclusion. It's true, HR is complex and important, just like any other function of your business. Often, small businesses don’t have the resources to have a dedicated in-house team of HR experts available to handle functions, but that doesn’t mean they have to miss out on the benefits available to them. Using HR outsourcing services available through a third-party provider, like a PEO, provides a solution. Let's dive into the key HR functions at small businesses. RELATED:  [Simplifying Your Business Cuts Costs, Reduces Liability >>](https://blog.axcethr.com/4-ways-a-peo-can-help-employers-reduce-costs)  ## Key HR Functions for Small Businesses No matter what type of small business or start-up you run, there are certain tasks you’ll have to take care of. The role of human resources within a company (no matter its size or industry) spans the gamut. HR is inclusive of so many functions and sub-functions that even the most adept business owner or manager could have trouble remembering—let alone mastering—them all. Here is a short list of the most common key HR functions and how they help your business grow:  ## HR for Small Business Checklist ### General human resources  - [Employee relations](https://www.axcethr.com/services/human-resources/employee-relations/): Seeks to improve employee loyalty, productivity and workplace culture. - [Recruitment and retention](https://www.axcethr.com/services/human-resources/recruitment-and-retention/): Helps you find (and keep) the talent your business needs to thrive.  - [Organizational development](https://www.axcethr.com/services/human-resources/organizational-development/): Aligns your HR processes to support profitability and your overall goals.  - [Training and development](https://www.axcethr.com/services/human-resources/training-and-development/): Ensures you are investing in the growth of your people.  - [HR compliance](https://www.axcethr.com/services/human-resources/hr-compliance-specialist/): Ensures you are following all applicable HR-related laws, rules, and HR regulations (which may change depending on your industry, employee count, and locations).  - [Unemployment claims](https://www.axcethr.com/services/human-resources/unemployment-claims/): As an employer, responding to unemployment claims is mandatory if you want to object to a former employee’s claim.  ### Employee benefits - [Health, dental, vision, life, disability, HSA, etc.](https://www.axcethr.com/services/employee-benefits/employee-benefits-details/): These and other benefits are critical to keeping your talent happy and healthy.  - [401(k) retirement plan](https://www.axcethr.com/services/employee-benefits/401k-retirement-plan-benefits/): An attractive benefit for many skilled workers.  - [Benefits administration](https://www.axcethr.com/services/employee-benefits/employee-benefits-administration-and-compliance/): Expertise in benefit plans is required to make sure employee care goes off without a hitch.  - [Affordable Care Act (ACA) management](https://www.axcethr.com/services/employee-benefits/employee-benefits-administration-and-compliance/) and [compliance with COBRA, HIPAA, Medicare, etc.](https://www.axcethr.com/services/employee-benefits/employee-benefits-administration-and-compliance/): Knowing how to interact with the ACA will keep your company compliant with its legal obligations when it comes to employees.  ### Workers’ compensation, employee safety and risk management - [Workplace safety (OSHA, etc.)](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/workplace-safety/): Keeping your workers safe is critical, and so is compliance with the federal government’s OSHA regulations.  - [Workers' compensation insurance](https://www.axcethr.com/services/workers-comp-and-employee-safety-risk-management/workers-compensation-insurance/): Training employees to understand and monitor safety requirements is a moral and legal obligation of every employer.  ### Payroll processing and payroll taxes - [Payroll services](https://www.axcethr.com/services/payroll-and-tax-administration-services/payroll-services/) and [payroll tax administration](https://www.axcethr.com/services/payroll-and-tax-administration-services/): Ensuring employees are paid correctly and on time can be stressful, but getting it right every time is non-negotiable.  - [Payroll compliance](https://www.axcethr.com/services/payroll-and-tax-administration-services/payroll-compliance/): Compliance with your legal obligations surrounding payroll keeps the IRS and state agencies from levying fines against your business.  [![Clickable image that is hyperlinked to a blog post about why hire a peo instead of an HR person](https://no-cache.hubspot.com/cta/default/2652187/e0c15341-a7ae-4f09-9759-f94bbccfd4b3.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/e0c15341-a7ae-4f09-9759-f94bbccfd4b3) ## When Should a Small Business Delegate or Outsource HR? You may be wondering: “What size company needs an HR department?” The answer is nuanced: While every company needs experienced HR professionals on their side, not every business needs to have those professionals in-house. Small businesses can save money and reap the benefits of working with a team of experienced HR pros by outsourcing the functions of HR to a [certified professional employer organization](https://blog.axcethr.com/certified-peos-what-are-they-and-why-does-certification-mattereo) or certified [PEO](https://www.axcethr.com/why-axcet/about-peos/) for short.  When working with a PEO, you gain access to dedicated HR personnel who will take the time to get to know your company’s specific needs, goals and employees. You’ll also be able to tap into several advantages typically reserved for large businesses, like great deals on employee benefits and the knowledge of HR pros with decades of industry experience. With a PEO, as you scale your business, your HR department will grow with you.  Countless businesses struggle with understanding and keeping up with the never-ending compliance, safety, payroll and benefits requirements. As a result, they spend their valuable time trying to build an HR department from scratch. Delegating HR tasks to a PEO is worth it for many small business owners, but for time and cost-saving reasons, it's especially important for those who want to focus their resources on generating revenue.  For small business owners who need support across compliance, employee relations, and day-to-day administration, [professional HR services](https://www.axcethr.com/services/human-resources/) can provide structure without the cost of building an internal HR department. ## Axcet HR Solutions Handles HR for Small Business Owners Axcet HR Solutions understands the world of HR for small business. Beginning on day one, Axcet will help you identify and tackle a full range of human resources tasks, from recruitment and retention to health and safety management.  With Axcet HR Solutions, you’ll find that there’s no end to the benefits a growing company can reap by working with a [PEO](https://blog.axcethr.com/how-to-choose-a-reliable-peo-for-your-business). Wondering if an [outsourced HR provider](https://www.axcethr.com/why-axcet/outsourcing-options/) is the right call for you?  [Reach out to our consultants today to learn more](https://www.axcethr.com/schedule-consultation/).  [![Kansas City PEO Small Businesses Contact Kansas Missouri](https://no-cache.hubspot.com/cta/default/2652187/9cb1f5dc-8637-4cbb-8a8f-7cc0ebc7f324.png)](https://cta-redirect.hubspot.com/cta/redirect/2652187/9cb1f5dc-8637-4cbb-8a8f-7cc0ebc7f324) [![Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/hs-fs/hubfs/Jeanette-04.jpg?width=80&height=80&name=Jeanette-04.jpg)](https://blog.axcethr.com/author/jeanette-coleman) Written by #### [Jeanette Coleman, SPHR & SHRM-SCP](https://blog.axcethr.com/author/jeanette-coleman) Jeanette Coleman, SPHR, SHRM-SCP, is the Director of Human Resources at Axcet HR Solutions, where she has contributed her expertise for over 21 years. As a leader in the HR industry, she holds advanced certifications as a Senior Professional in Human Resources (SPHR) and SHRM-Senior Certified Professional (SHRM-SCP). Jeanette oversees HR strategy and operations, ensuring Axcet delivers exceptional HR services that help small and mid-sized businesses stay compliant and grow. With a Master’s degree in Human Resource Management from Keller Graduate School and a Bachelor of Science in Business Administration from Kansas State University, Jeanette is well-equipped to lead and support clients in navigating complex HR challenges. Throughout her 15-year tenure as Director of Human Resources, she has been instrumental in positioning Axcet as the Midwest’s largest and premier Professional Employer Organization (PEO). Her previous roles at Axcet include Director of Employee Benefits and Senior HR Consultant, where she gained extensive experience in HR outsourcing, and employee risk management. Jeanette’s expertise has been recognized through industry and regional publications. She co-authored the article “High-Touch in the Age of High-Tech: How PEOs Can Embrace AI Without Losing Their Humanity” (https://peoinsider.org/articles/high-touch-in-the-age-of-high-tech-how-peos-can-embrace-ai-without-losing-their-humanity/) for PEO Insider (March 2026), alongside Jo McClure, and was featured in Ingram’s Magazine in a Q&A (https://ingrams.com/article/qa-with-jeanette-coleman/) discussing generational change, technology, and workplace culture. These contributions reflect her perspective on balancing innovation with the human side of HR. Jeanette’s leadership reflects her deep commitment to helping businesses thrive through strategic, compliance-driven HR solutions. Through her writing, she shares insights on HR strategy, compliance, and best practices to help employers confidently manage their workforce. Published in: PEO Insider and Ingram's Read more [View all posts →](https://blog.axcethr.com/author/jeanette-coleman) ### Get HR Updates ### Table of Contents ### Related Resources - [services Human Resources](https://www.axcethr.com/services/human-resources/) - [article human resources best practices](https://blog.axcethr.com/beyond-the-water-cooler-7-hr-best-practices-for-small-business-owners) #### [Unique Employee Benefits: The New Norm for Attracting Top Talent? ![unique employee benefits](https://blog.axcethr.com/hubfs/Aug%2031%20Blog%20Image.png)](https://blog.axcethr.com/progressive-organizations-are-stealing-your-employees-with-these-emerging-benefits) #### [![behavioral interviewing](https://blog.axcethr.com/hubfs/behavioral-interviewing-_1200-%C3%97-628-px_%20(1).webp) Behavioral Interviewing: Uncovering the Hidden Potential in Candidates](https://blog.axcethr.com/behavioral-interviewing-past-performance-as-a-predictor) ## 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" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateModified" : "2025-12-21T20:21:28.539Z", "datePublished" : "2023-09-13T20:46:26.000Z", "headline" : "HR for Small Business: A Comprehensive Guide", "image" : [ "https://blog.axcethr.com/hubfs/HR-for-small-business-_1200-%C3%97-628-px_-_1_%20(1).webp" ], "mainEntityOfPage" : { "@id" : "https://blog.axcethr.com/understanding-hr-for-small-business-key-functions-and-benefits", "@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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When we’re defining HR for small business, we’re generally discussing either the team members who serve as valuable resources to a company or the employee management function of a company. This second concept is also occasionally referred to as human resource management (HRM). In this post, I’ll share an overview of what HR for small business looks like, the key HR functions that come into play at almost every company, and finally, when a small business should consider delegating or outsourcing HR. What is Human Resource Management? Human resource management refers to the strategic and coherent approach to the management of an organization's most valuable assets: The people working there who individually and collectively contribute to the achievement of its objectives. HRM encompasses a range of functions and activities, including but not limited to recruitment and selection, training and development, employee compensation and benefits, performance management, employee relations, legal compliance, health and safety, HR strategy, culture and change management, and diversity and inclusion. It's true, HR is complex and important, just like any other function of your business. Often, small businesses don’t have the resources to have a dedicated in-house team of HR experts available to handle functions, but that doesn’t mean they have to miss out on the benefits available to them. Using HR outsourcing services available through a third-party provider, like a PEO, provides a solution. Let's dive into the key HR functions at small businesses. RELATED:  Simplifying Your Business Cuts Costs, Reduces Liability >> Key HR Functions for Small Businesses No matter what type of small business or start-up you run, there are certain tasks you’ll have to take care of. The role of human resources within a company (no matter its size or industry) spans the gamut. HR is inclusive of so many functions and sub-functions that even the most adept business owner or manager could have trouble remembering—let alone mastering—them all. Here is a short list of the most common key HR functions and how they help your business grow: HR for Small Business Checklist General human resources Employee relations: Seeks to improve employee loyalty, productivity and workplace culture. Recruitment and retention: Helps you find (and keep) the talent your business needs to thrive. Organizational development: Aligns your HR processes to support profitability and your overall goals. Training and development: Ensures you are investing in the growth of your people. HR compliance: Ensures you are following all applicable HR-related laws, rules, and HR regulations (which may change depending on your industry, employee count, and locations). Unemployment claims: As an employer, responding to unemployment claims is mandatory if you want to object to a former employee’s claim. Employee benefits Health, dental, vision, life, disability, HSA, etc.: These and other benefits are critical to keeping your talent happy and healthy. 401(k) retirement plan: An attractive benefit for many skilled workers. Benefits administration: Expertise in benefit plans is required to make sure employee care goes off without a hitch. Affordable Care Act (ACA) management and compliance with COBRA, HIPAA, Medicare, etc.: Knowing how to interact with the ACA will keep your company compliant with its legal obligations when it comes to employees. Workers’ compensation, employee safety and risk management Workplace safety (OSHA, etc.): Keeping your workers safe is critical, and so is compliance with the federal government’s OSHA regulations. Workers' compensation insurance: Training employees to understand and monitor safety requirements is a moral and legal obligation of every employer. Payroll processing and payroll taxes Payroll services and payroll tax administration: Ensuring employees are paid correctly and on time can be stressful, but getting it right every time is non-negotiable. Payroll compliance: Compliance with your legal obligations surrounding payroll keeps the IRS and state agencies from levying fines against your business. When Should a Small Business Delegate or Outsource HR? You may be wondering: “What size company needs an HR department?” The answer is nuanced: While every company needs experienced HR professionals on their side, not every business needs to have those professionals in-house. Small businesses can save money and reap the benefits of working with a team of experienced HR pros by outsourcing the functions of HR to a certified professional employer organization or certified PEO for short. When working with a PEO, you gain access to dedicated HR personnel who will take the time to get to know your company’s specific needs, goals and employees. You’ll also be able to tap into several advantages typically reserved for large businesses, like great deals on employee benefits and the knowledge of HR pros with decades of industry experience. With a PEO, as you scale your business, your HR department will grow with you. Countless businesses struggle with understanding and keeping up with the never-ending compliance, safety, payroll and benefits requirements. As a result, they spend their valuable time trying to build an HR department from scratch. Delegating HR tasks to a PEO is worth it for many small business owners, but for time and cost-saving reasons, it's especially important for those who want to focus their resources on generating revenue. For small business owners who need support across compliance, employee relations, and day-to-day administration, professional HR services can provide structure without the cost of building an internal HR department. Axcet HR Solutions Handles HR for Small Business Owners Axcet HR Solutions understands the world of HR for small business. Beginning on day one, Axcet will help you identify and tackle a full range of human resources tasks, from recruitment and retention to health and safety management. With Axcet HR Solutions, you’ll find that there’s no end to the benefits a growing company can reap by working with a PEO. Wondering if an outsourced HR provider is the right call for you?  Reach out to our consultants today to learn more.", "author" : { "@id" : "https://blog.axcethr.com/author/jeanette-coleman#author", "@type" : "Person", "name" : "Jeanette Coleman, SPHR & SHRM-SCP", "url" : "https://blog.axcethr.com/author/jeanette-coleman" }, "dateCreated" : "2023-09-13", "dateModified" : "2025-12-21", "datePublished" : "2023-09-13", "description" : "Every industry and company has unique needs for their human resources (HR) team, but many common tasks and concepts unite HR needs across the business world. 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