HR Management

HR Advantages: Small vs. Large Businesses – HR Affiliates Blog

In order to meet the demands of their organization’s objectives, HR Managers must bring a high level of business acumen as well as creative solutions in order to balance employee expectations, regulatory oversight, and budgetary restraints. Think the large corporations have a hands-down advantage? The smaller organizations might just surprise you then! Consider the following areas of HR engagement:

Daily Operations

All organizations hold responsibility for daily operations such as timekeeping, benefit administration, employee file maintenance, payroll, and regulatory reporting. Larger organizations often operate at an advantage by assigning such duties to entry level staff who assume the role as their primary responsibility. For small to mid-size organizations with limited staff, such duties will often consume a large portion of their day leaving few hours to spend on operational and strategic functions. So, although transactional responsibilities typically do not require certification or extensive training, performance errors place the organization at risk for substantial financial penalties.


Larger businesses, although they have a higher level of regulatory accountability, can afford to assign internal staff accordingly. Small to mid-size organizations may level the field with larger organizations through the use of outsourced support such as payroll processors, HRO partnerships, and thorough audit reviews.

Recruitment and Retention

The focus of recruitment must go beyond simply filling an open role. Successful recruitment is a process that begins long before an opening is identified. Human Resource representatives must ensure that wages are competitive, benefits packages have relevant appeal, development opportunities and programs are in place, as well as aggressively engaging outreach strategies that connect to both active and passive candidates.


While the lead may appear to lean toward large organizations, most Millennials would say otherwise. Small organizations may offer direct access to the key decision makers. Also, opportunities to engage in mentoring activities for upward mobility are strong in small business focused on growth. Small to mid-size organizations can be more fluid when tailoring benefits to include flexible work schedules, appealing corporate cultures, and employee satisfaction. Such businesses may further enhance their position by engaging contingency recruiting agencies to assist in their searches. Such agencies provide insight into hiring trends, wage expectations, and passive candidate opportunities.

Training and Development

The benefit of ROI for training may differ across industries. For many organizations, training programs focus on soft skill development in order to obtain a goal of lower attrition and higher quality performance and outcomes. Communication, leadership, and team building are frequently used to prepare current employees for future opportunities while improving work satisfaction. Internal developmental programs such as mentorships, special project assignments, and frequent coaching/feedback opportunities are highly attractive to Millennials. Such engagements allow team members to gauge their personal progress, measure their own performance, and create a plan for their future.


This area may be a closer call than most. Larger organizations often have the internal HR leadership to develop, maintain, and adjust programs so that they remain productive and in place. The downside may be that larger organizations can be slower to change. Budget restrictions may force smaller organizations to engage program opportunities less frequently or whose model is not customized to meet the needs of the organization. Small to mid-size organizations hold their advantage in the agility to implement changes and make new ideas into action in a shorter time line.

While the objectives of HR departments are consistent across business size, the path to viable solutions may differ. HR representatives strive daily to meet the goals that create a path of success that benefit both individual team members and the organization. Large, small or mid-size; Human Resources create the partnerships that build the future.

For assistance with any or all of your human resources needs, HR Affiliates, provides solutions.

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