The HR Management Differences Between Small Teams and Large Companies

Every smart business owner knows the importance of employee satisfaction for the business’s success. Satisfied employees work better and harder and want to join the journey of success alongside you.

However, only good-looking office space and high wages won’t keep employees engaged for a long time. They need someone who knows employee values and is ready to take everyone’s issues and questions seriously. This person is your HR manager, who listens, nurtures, and manages your employees to improve your team’s results and motivation.

HR Management Main Differences for Small and Big Businesses

HR managers have their hands complete with different obligations. However, HRs responsibilities for small teams can’t be compared to those in large companies as they are some significant differences. Every new couple needs a unique approach, so you, HR manager, must know how to handle yourself in different companies. Here are some principal differences between small and big businesses you may face in your work.

1. The Level of Resources

Smaller teams have a limited number of employees, so it’s only natural that the HR department or manager may not be needed from the start. For most small businesses, business owners or CEOs are the ones who take the HR responsibilities in the beginning. So, when the time comes to have a dedicated employee for the HR position, the recourses are expected to be short. Small team HR managers spend most of their time on administrative tasks and employee data collection.

While larger companies have dedicated HR developments to improve employee satisfaction and engagement, HRs perform more creative and psychological tasks to maintain the team in good shape. They also have resources to use helpful tools like employee engagement platforms, ERP software, and even online classes to improve their job.

2. The Process of Recruitment and Retention

Although the recruitment process seems similar between those two types of businesses, they differ significantly. It’s even more crucial for smaller companies to get the right candidate because the retention process costs more for them. This is why many small businesses have a more flexible recruitment process and can find new team members much faster. Additionally, smaller companies have to manage their budget, so they can advertise the job opening via online brochures instead of using recruitment agencies.

Bigger businesses have denser recruitment processes and search for their employees much longer.

3. Organizational Hierarchy

Larger companies have well-established organizational structures. The HR department is just a tiny part of those companies. While it reduces multitasking and sets direct responsibilities for each HR specialist, it may be more challenging to show how your change has affected the company.

HRs of smaller companies, on the other hand, may have many different responsibilities that aren’t even remotely connected to human management. Managing smaller teams is more like family relationships, so you may be the one to report the grant proposal or help make creative decisions if you fit  the role.

Final Thoughts

HR specialists are the unspoken heroes behind every successful business. They value their employees and know how employee satisfaction is directly connected with team triumph. Now, every specialist should decide what working style they prefer and work in teams that seem more compatible with their work style.