No Internal HR Department? Here’s What SMBs Should Do

No Internal HR Department

According to Australian Bureau of Statistics, the country’s economy is characterised by its number of entrepreneurs. Not only small and medium businesses (SMBs) contribute massively to the Australian economy, but also employ almost half of the country’s workforce. This sector of small businesses is accountable for one-fifth of Australia’s GDP. However, the one drastic issue this sector has to face is of maintaining a healthy human resource department. The said problem is mostly faced by start-up SMBs because they’re still in their preliminary phases of doing business and cannot afford it.

This doesn’t mean it’s the end of the world for SMBs. There are HR outsourcing providers like  Employment Innovations that can offer solutions to HR problems which most of the businesses have to endure at some stage of their lifecycle. Here we discuss some viable options that are available to businesses who cannot afford a thriving internal HR department.


There are HR firms and consultancies which are there to take over the responsibilities of a salaried HR professional for you. Outsourcing your HR department has many benefits, especially for the start-ups. Outsourcing saves you money, lots of money. This is because you don’t have to pay an HR professional a salary every month along with other monetary perks and benefits. Also, an HR firm takes care of the employment laws – new and revised – for you, without you being bothered about it.


If the nature of your business, that’s currently being run without an HR department, doesn’t allow you to invest considerable time in the lengthy procedures of recruitment then perhaps the best option for you is to consult headhunting agencies. Head-hunters don’t wait for the candidates looking for jobs to apply or send their CVs to the recruiters; instead they directly contact and approach the right person for the job themselves. This saves a lot of time and results in efficient hiring.

Internal Hiring

If you’re running a business without a proper functioning HR department then probably you won’t have the training and development function of the HR as well. In this scenario, the best fish you can catch is the one who’s already familiar with the company, its standards, its operations and the designation you want to fill. The only possible way you can do this is to re-hire or promote someone from your company who qualifies for the role.


Perhaps the most effective way to hire without having an HR department is by employee referrals. It’s faster, you can trust the candidate your own employee refers or recommends, and above all it saves a tremendous amount of money – that is the main agenda in this situation. You don’t have to pay for posting jobs, no payments to recruitment agencies and head-hunters, and you don’t have to go through the tedious process of short-listing the applicants’ CVs.

Aside from SMBs and financially challenged businesses, many growing and stable businesses also prefer to hire the right personnel by one of these recruiting options for which you don’t necessarily need to have a living and breathing HR department. Moreover, these options may result in the hiring of a better workforce than from the conventional HR induced hiring processes.