HR Management in Small Firms

Something I've wondered about since beginning this class is how small firms manage their Human Resources ("HR"). HR is a crucial component of any business and impacts a wide array of things from hiring and retaining talent to fostering a positive work culture.

One of the areas that I've wondered about is onboarding and training of new employees. Small firms starting out will lack any kind of formal onboarding programs, and will need to sort this all out for themselves. While identifying the necessary steps and refining them into a workable process is probably not too difficult, some hires will have unique situations or more sophisticated needs. These challenges, while possibly not difficult, will take time away from partners' tasks that actually generate revenue.

And what about employee relations? It's crucial in any business to maintain positive employee relations and avoid disputes, but what happens if a messy workplace conflict arises? A managing partner of a small firm will need to be comfortable with handling these situations in a way that complies with employment laws and regulations, while mitigating any potential risks for the firm.

Also, there's benefits and compensation. In a small firm, managing partners will have to be comfortable choosing benefits packages for their employees, deciding whether they will offer retirement plans, etc. Whether to offer certain benefits and in what amounts is a significant decision that will impact everyone who works at the firm and the firm's overall financial performance.

The overarching theme is that HR management in a small firm can constitute making decisions that impact real people's lives and the health of the firm, spending significant time on tasks that take lawyers away from their "actual" work, and learning a lot of information on the fly to handle things properly and in compliance with employment laws. These reasons are probably why the practice of outsourcing HR has grown significantly.