What makes small businesses special?
Regardless of your initial budget and resources, we know what fueled your small business initially was a dream and a desire to do better, to be better than the places you'd worked before. We believe in supporting that dream. We believe in supporting you and your small business.
Did you know, that small businesses are actually the cornerstone of not only the American dream but of the American economy? Small businesses drive innovation, invention, and job creation but being small can also put businesses at risk. That’s not because they don’t care but because many small business owners wear many hats and are simply too busy to keep up with constantly changing laws and standards.
As of 2024, there are approximately 33.2 million small businesses in the United States, which make up 99.9% of all U.S. businesses.
Due to their smaller size and employees who tend to be involved in multiple facets of the business, small businesses are ideal environments for new technologies and systems that improve efficiency and cut costs.
Approximately 53% of small businesses have been penalized for payroll noncompliance in the last five years. These penalties often stem from manual errors in payroll processing, failure to pay employees correctly, or not adhering to various labor laws and tax regulations
About 38% of employees believe that overall job satisfaction is higher in smaller businesses compared to only 17% who think it is better in larger ones. Smaller businesses often provide a more personal and supportive work environment, contributing to higher job satisfaction
resource consraints
Many small businesses struggle with insufficient resources and time to address HR issues comprehensively. This can result in inadequate training, poor policy implementation, and insufficient employee support, leading to higher turnover rates and lower employee satisfaction
The U.S. Department of Labor emphasizes that accurate recordkeeping and compliance with overtime and minimum wage regulations are essential. Small businesses with HR support are more adept at managing these requirements, reducing the risk of fines and legal disputes.
Small businesses employ about 61.7 million people, representing nearly 47% of the private-sector workforce.
For the average small business in the United States, labor costs can account for as much as 70% of total business costs. This includes employee wages, benefits, payroll taxes, and other related expenses
The Department of Labor can impose civil money penalties for various violations. For example, child labor violations can result in fines of up to $15,629 per violation. Recordkeeping violations can result in penalties of up to $1,280 per violation. Violating the Fair Labor Standards Act (FLSA) can lead to civil money penalties of up to $2,374 per violation
Many employees feel that transparent and consistent communication from leaders is better at smaller businesses. Additionally, some employees believe that the quality of managers is superior in smaller businesses, which can be crucial for employee motivation and retention
Around 36% to 53% of small businesses face lawsuits each year, with about 43% being threatened with legal action annually. The average liability suit costs at least $54,000, highlighting the financial risks associated with legal and compliance challenges.
Professional HR support often includes training programs that help ensure employees are aware of compliance requirements, such as anti-discrimination laws enforced by the (EEOC) Equal Employment Opportunity Commission. This proactive approach helps prevent violations and fosters a more compliant workplace environment
Small businesses accounted for 63% of new jobs created in the United States between 1995 and 2021. This significant contribution underscores the vital role small businesses play in the economy, particularly in job creation and sustaining employment growth
The median tenure for employees in the United States is about 4.1 years overall. However, small business employees generally have a tenure of around 2.8 years, whereas employees in larger organizations often stay longer, with an average tenure of approximately 4.9 years
Fines for I-9 paperwork errors range from $252 to $2,507 per violation. These violations include errors such as missing or incomplete forms. Fines for knowingly Hiring or Continuing to Employ Unauthorized Workers fines range from $590 to $4,722 per unauthorized worker. Subsequent offenses can result in even higher penalties.Failing to complete or retain the forms as required by law will also incur fines.
Many employees report that they experience greater schedule flexibility in smaller businesses. This flexibility can lead to a better work-life balance, which is a significant factor for many employees when choosing where to work.
Misclassification of workers as independent contractors instead of employees is a common issue for small businesses. Those with HR support are better at correctly classifying workers, avoiding significant penalties associated with misclassification.
According to recent studies, only about one in four small businesses have an updated employee handbook. This can expose them to compliance and litigation risks, as well-documented handbooks help mitigate these challenges by clearly outlining policies, procedures, and employee expectations