The human resource “department” for a small business is usually not more than one person–and often only one person who wears many hats. This person may be responsible for any or all of the following:

• Compensation and benefits (job analysis, evaluation and grading, payroll)
• HR management (policies and procedures, budgeting, strategic planning)
• Labor relations (discipline, discrimination, harassment, absenteeism, conflict resolution)
• Legal issues (firing, legislation, workers’ compensation)
• Staffing (employment contracts, recruitment, retention, selection)
• HRIS (employee portals, implementation of HR systems, product/vendor selection)
• Training (orientation, needs assessment, evaluation)

While an HR generalist may know a bit about everything, “learning on the job” is a scary prospect given the constant presence and oversight of entities such as the Internal Revenue Service (IRS), the Department of Labor (DOL), or the Equal Employment Opportunity Commission (EEOC). The old adage “ignorance of the
law is no defense” certainly applies when a company is faced with an audit, an investigation by a government agency, or even litigation.

In fact, an HR generalist who makes the wrong decision about a crucial employee issue – even something as simple as asking the wrong question in an interview – can result in significant consequences.