SMB are struggling without HR: Here's how to avoid the blindspots

Small to medium businesses (SMBs) are the backbone of the Australian economy. 

They account for 97% of all Australian businesses and include some of our most significant and essential businesses. They drive innovation and provide employment opportunities to over 7 million people across the nation.

Many SMBs struggle with limited resources despite their significant role, especially within their HR departments.

But surprisingly, a considerable number of SMBs have under-resourced HR teams. And because HR teams are already on tight budgets and focusing on immediate operational needs, SMB HR teams have more blind spots than we'd like to admit.

Organisations need more bandwidth or resources to adequately deal with issues and the resulting compliance headaches, which are growing with the rise of remote work, regulatory changes and leadership challenges. Because when you have blind spots, you don't know what's coming around the corner.

Let's unpack some of these and explore how to steer clear of potential pitfalls and avoid a severe collision.

Resource Constraints

Resource constraints are one of the biggest headaches for SMBs and their HR teams.

Unlike large corporations with dedicated HR departments and legal teams, SMBs often operate with a tiny HR crew. This makes keeping up with your employees, let alone employment laws and regulations like the recent updates to the Fair Work Act on casual employment and wage underpayment penalties challenging.

As a result, critical HR tasks can fall through the cracks, increasing the risk of non-compliance and employee dissatisfaction. So, when you're juggling the complexities of payroll, employee entitlements, workplace health and safety, and industrial relations, it's easy to feel overwhelmed. And let's face it, who has the bandwidth to become an overnight HR expert when you're already wearing multiple hats?

To dodge these blind spots, tap into technology systems that do the heavy lifting for you. By leveraging an all-in-one HRIS like Martian Logic, your HR team can automate tasks, stay compliant and free up time to focus on what really matters—people.

The rise of remote work

Thanks to the pandemic, remote work has gone from being a trendy perk to the new normal. Many organisations have embraced flexible working, like it’s the latest Netflix series. 

But while remote work offers many benefits, it also throws curveballs at HR teams that are already stretched thin. This shift has introduced new compliance challenges that SMBs need to address promptly. Here are some areas where remote work can create compliance blind spots:

Workplace Safety—Guess what? You’re still responsible for ensuring a safe work environment even when employees are at home.

Things like ergonomic assessments and managing risks associated with remote setups are important to stay on top of. Suddenly, HR teams become interior designers and safety inspector experts.

Data Security and Privacy—The risk of data breaches skyrockets when employees access data from who-knows-where on possibly unsecured networks. 

Compliance with privacy laws like the Privacy Act and the Fair Work Act becomes a maze when data is flying around from various locations. Protecting sensitive information becomes complex, and failure to do so can have serious repercussions. So, what's the solution?

Leveraging Martian Logic's HRIS means you can keep sensitive data under lock and key, ensuring only the right people have access, no matter where they work. It simplifies compliance with the Privacy Act, so you can focus on growing your business instead of stressing over data breaches, even when employees are scattered everywhere from Brisbane to Bali this summer.

Leadership gaps

Effective leadership is crucial for building a workplace where compliance isn't just a box to ticker but a part of the culture. 

However, SMB leaders often juggle multiple roles, and sometimes HR responsibilities need to get the attention they deserve. This can lead to oversight in policy enforcement and inconsistent management practices, which can harm your organisation in the long run.

So, when resources are tight, prioritising compliance amidst business pressures doesn’t seem like the most urgent issue. It's easy for it to take a back seat when there are immediate fires to put out.

Employees might unknowingly cross lines if leaders aren't communicating across departments. This isn't just bad for morale, it can result in unintentional compliance breaches. Bridging these leadership gaps requires tools that promote consistency and clarity.

With Martian Logic's HRIS, you can centralise all your HR policies and procedures, making them accessible to leaders and employees. This promotes consistency and keeps everyone on the same page. By strengthening leadership and providing the right tools, you can foster a culture of compliance that benefits everyone in your organisation.

Overcome HR compliance challenges

We've looked at the blind spots, but now let's dive into how to adjust your mirrors to avoid them like a pro.

Invest in HR—first things first, get the right people on board. Hiring dedicated HR personnel or bringing in external HR consultants can make a world of difference. These pros can interpret changes to legislation, implement spot-on policies, and keep you updated on all things compliance. 

Leverage technology—let technology handle the heavy lifting. 

Utilise HRISs like Martin Logic to automate compliance tasks and administrative HR. This cuts down on human error and frees up your time for more important strategic HR work. Tools like Martian Logic's HRIS can assist with record-keeping, tracking employee entitlements, and ensuring payroll accuracy. 

Provide training—knowledge is power. Offer training for your leaders and managers on HR compliance. Whether it's workshops, seminars, or online courses, boost their understanding of legal obligations so they can stay on top of their matters so they don’t become your problems unnecessarily. A well-informed team is less likely to stumble into compliance pitfalls.

Conduct regular audits—be proactive and don't wait for problems to knock on your door. Regular internal audits help you spot compliance gaps before they become big issues. Reviewing policies, procedures, and practices ensures everything aligns with current laws and regulations. 

Foster a culture of compliance—make compliance part of your company's DNA. Encourage open communication about the importance of following the rules. You're fostering collective responsibility when everyone understands and buys into legal requirements.