The HR department is the backbone of any organization. This stands true for small and medium-sized businesses as well. Right from promoting a positive working environment to taking care of employee well-being and working for the success of the organization, human resources plays a vital role.

However, beneath the surface of HR operations, certain drawbacks in the existing HR functions result in employee frustrations. Along with the HR team, the employees also play a significant role in taking the business ahead. So, the frustrations of the employees would mean sacrificing the efficiency of the business.

To combat this, it’s important to find out the troubles the employees are facing due to HR challenges. Given below are the employee frustrations. that small businesses should consider before hiring HR managers.

1. Lack of financial inclusion

Have you ever seen employees of small and medium-sized businesses getting access to financial services from their companies? Well, to be honest, they don’t even get salary slips. So, financial inclusion is a far-fetched dream.

The primary reason behind this lack of financial inclusion can be attributed to no proper HR manager or HR software for MSMEs. In every company, the HR team or the HR manager takes care of the employee's whereabouts. Since MSMEs barely have any HR system, there’s no track of employees and their documentation. This results in no financial inclusion for the employees.

2. Unorganized job opportunities

The entire MSME sector is filled with unorganized job opportunities because of a lack of compliance and an HR management system. Right from informal economic activities to lack of legal protection and social security benefits, these problems loom large on the entire MSME sector.

As a result, the employees of the MSMEs fail to switch from one job to another. Besides, the lack of compliance puts them in questionable situations multiple times.

3. Lack of knowledge of labor and tax laws

A majority of the employers in the MSME sector are not aware of the labor and tax laws. As a result, employees get exploited on various occasions by employers. Sometimes, this results in poor wages for the employees as well. Again, not following proper labor and tax laws can put employers in legal trouble.

Conclusion

Therefore, the MSMEs still need to work on their human resource section to bring a systematic approach to their working culture and reduce employee frustrations. Since MSMEs and startups have a restricted budget, they struggle with hiring an HR manager separately to take care of their employees.

This is why we have come up with MicroHR, a mobile-friendly employee attendance management system for MSMEs. Being an affordable HR software for small businesses, MicroHR allows you to track employees both online and offline.

This free HR software for startups allows both employers and employees to mark attendance manually and in automated format respectively. Along with it, the app allows you to take care of the compliance and employee documentation. Further, the real-time salary calculation, instant payment, and digital record of payment make it a go-to app for all small businesses and startups.

Worrying about the cost? Please don’t because all these features are completely free forever.

Want to know more about MicroHR? Click here.

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