Establishing human resources functions is a matter of legal compliance. An employer with as few as one employee could have as many as 10 or more different employment laws with which to comply. As the employer increases its number of employees, the number of employment law requirements increases too. Many small employers wait to establish human resources functions until unexpected employee issues drive the action or a government agency demands compliance. Unfortunately, for many small employers delay in establishing a human resources component in the organization can be very costly and result in major consequences.
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