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Writer's pictureSabrina Baker

The Top 5 Challenges in Managing HR in a Small Environment

At Acacia, we support employers with teams ranging from 1-500 employees. In that range, the types of individuals handling HR vary significantly.


From HR Departments of One (HRDOO) to small HR teams to a non-HR professional managing a hybrid role (with no HR experience) the person in charge of HR looks very different from one organization to the next.


One thing that doesn’t change is that those individuals managing HR have to manage everything—often with limited resources and support.


From compliance and employee relations to onboarding and payroll, they are a one-stop shop for the wide range of activities that fall under HR. In our work with these groups here are what we find to be the five most common challenges they have to tackle every day.



The Top 5 Challenges in Managing HR in a Small Environment


1. Balancing Administrative Tasks with Strategic HR Work

In a small HR environment, administrative tasks—like payroll, data entry, and record-keeping—often take up a significant portion of the workday.

These tasks are essential but can prevent HR professionals from engaging in more strategic, high-impact work, such as employee engagement and workforce planning.


Solution: To strike a balance, look for ways to automate and streamline your administrative tasks. Consider using HR management software, such as Gusto or Paylocity, which can automate payroll, leave tracking, and other routine tasks.

Tools like Trello or Asana can also help you manage your workload by setting priorities and deadlines for each task. When administrative work is organized and streamlined, you’ll have more time to focus on strategic HR initiatives that contribute directly to business goals.




2. Keeping Up with Compliance

Compliance is critical in HR, but staying on top of it can be challenging for small teams. Employment laws and regulations are constantly evolving, and missing an update can have serious consequences. However, with limited time and resources, compliance can easily become overwhelming.


Solution: Stay informed by subscribing to trusted HR resources like our blog, or government sites such as the Department of Labor.


Many HRIS providers also track regulations and provide alerts when changes occur. Additionally, consider networking with other HR professionals in similar roles or joining a community, where you can discuss and share insights on current compliance challenges. Prioritizing compliance by staying updated and using the right tools can reduce risks and prevent compliance issues down the line.




  1. Managing Employee Relations Alone

When you’re managing HR with few resources, building strong employee relationships and handling employee relations issues often falls solely on your shoulders. This includes conflict resolution, fostering open communication, and supporting employees' well-being—tasks that are essential but can be time-consuming and emotionally demanding.


Solution: Building strong communication practices is key to effectively managing employee relations. Schedule regular check-ins to build rapport and maintain an open-door policy to encourage open conversations.


For solo practitioners, tools like Culture Amp or Officevibe can provide helpful feedback on employee sentiment, and anonymous channels can help identify potential issues early on. If regular meetings aren't feasible, consider quick daily walk-throughs for informal check-ins. For remote environments, join team meetings or virtual events to maintain engagement and support.


4. Access to HR Knowledge and Continuous Learning

In a small HR environment, it can be difficult to have all the knowledge needed across various HR disciplines. From benefits administration to labor law updates, the scope of knowledge required in HR is vast, and when you’re managing HR solo, it’s impossible to know it all.


Solution: Utilize free or low-cost resources to keep your knowledge base current. There are numerous online platforms, like LinkedIn Learning or Coursera, that offer HR-specific courses.


Many of these platforms allow you to earn certificates, boosting both your expertise and credibility. You can also join HR communities, where HR professionals share resources and advice, making it easier to stay up-to-date on best practices. Finally, don’t hesitate to reach out to experts within your network or look for mentors who can guide you through particularly challenging situations.




5. Prioritizing Tasks Across Competing Needs

Solo HR professionals are constantly juggling a wide range of tasks, each with its own priority level. Determining which tasks to tackle first—whether it’s recruitment, compliance checks, employee relations, or benefits administration—can feel like a juggling act.

Without a clear approach to prioritizing, it’s easy to feel overwhelmed and uncertain about what requires the most immediate attention.


Solution: Adopt a structured approach to prioritize your tasks. A good starting point is the Eisenhower Matrix, which categorizes tasks into four quadrants: urgent and important, important but not urgent, urgent but not important, and neither urgent nor important. This helps you identify which tasks need immediate attention and which can be delegated or scheduled for later.


Additionally, project management tools like Monday.com or ClickUp can help you organize tasks visually, set deadlines, and monitor progress, reducing the chance of important items slipping through the cracks. When tasks are clearly prioritized, you can manage your workload more efficiently and reduce stress.


The Wrap-up


For HR professionals managing solo or working in small teams, tackling daily HR responsibilities can be an uphill battle. Yet, with the right strategies, tools, and support, these challenges become manageable and even growth opportunities. The learning and development opportunities for these individuals are vast just by engaging in the work alone.


Small HR teams play a vital role in the organization’s success, often acting as the backbone of the employee experience.


By taking a proactive and structured approach to these challenges, you can create a positive impact on both the HR function and the broader organization. Remember, you’re not alone in these challenges—reach out to other HR professionals, join communities, and explore available resources. 





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