Human Resources // Small Businesses versus Large

Small Businesses Versus Large

How and why is HR in small businesses different than in large firms?

Human Resources (HR) is different in small businesses than in large firms because they work more closely to the employees, in addition to their normal HR duties. If a company is officially registered as per the national laws and rules, then whether it consists of 10 employees or 1000 employees, it has to follow the rules and regulations established by the governing authorities. Employees need motivation, respect, love and appreciation. I feel that a HR department or personnel within small businesses, fills this niche need better because they have less employees to deal with. The Human Resource Management (HRM) department in a small business ensures that employees are happy and comfortable working in the company. HR in a small business also streamlines the entire task of employee management, making the company a well-managed storehouse of excited employees willing to give in their best and prove themselves. That is also a reason why small businesses are aggressive in their strategies to hire human resource managers, because ultimately, it is the people who make the company.

What are your thoughts and opinions about HR and the differences between an HR department (or personnel, if there is only one person) in a small business versus a large company? Why do these differences exist?

Sooner than later,

The Tiny Professional

16 Comment

  1. I think HR departments reflect the people who adminster them, regardless of their size. I’ve seen smaller departments lack any kind of personal touch while having experienced some huge companies who have HR departments that are truly in touch with their employees. Regardless of the size, HR is often the first line of contact for employees who have any issue at their place of employment, their role is therefore critical to the successs of any organization. Great post.

  2. cindy b says:

    This is a very interesting read. My Sister is in HR for a small business. I really had no idea there were so many differences.

  3. Great information! Thanks so much for sharing it.

  4. Michele says:

    Back when I worked I always preferred working at small companies. There is more of a connect between employees and employers–especially when it comes to HR matters.

  5. Amanda @ Erickson and Co. says:

    An hr department is great to have in my opinion. I’ve worked at some smaller companies who didn’t have them and they were atjmt more disorganized than the larger companies that did have a separate hr department.

  6. kungphoo says:

    I am not sure about how HR really works in a small business.. i would suspect it be a little easier with the smaller number of people to handle.

  7. Well, I wish I could give some insight, but I’ve never worked for a business. I’ve either worked for the military or as a teacher. There was never an HR department involved.

  8. Chasity Boatman says:

    I always like working for smaller companies. I think they are more intimate and the bosses can connect with their workers more.

  9. I only worked for small companies so I only have limited experience.

  10. Small businesses and Large businesses had many differences, but you mentioned many such differences which I had no idea about.

  11. Liz Mays says:

    It stands to reason that HR would be much more in touch with staff in a small business. Employees become more of a number and statistic in a large firm.

  12. Rosey says:

    We had a great HR dept. at the university where I worked. Though it was a big institution, they were still very involved and knew all of us by name. Lots of things going on in there, laws and such to adhere to… I appreciate all of the work they do for sure.

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