Navigating HR Challenges in the World of Small Business

What Does an HR Partner Actually Do for Small Businesses?

[Randi Lynn Johnson]: All right, welcome everybody. We're rolling along — we're in February now. And with us, if you remember, if you've been following along, we had Brian Werner tell us all things taxes. But today we're super privileged to have Brian's other half, Reanna Werner. Welcome!

[Reanna Werner]: Hello, hello — happy to be here. Thanks for inviting me in today.

[Robin Pasley]: Of course! And Reanna, thank you so much for coming in. We're excited to hear what you have to tell us about HR compliance — how to navigate it, how to do it well. It's a big lift on the shoulders of business owners, and there are so many things to know and stay in line with, not just to avoid trouble but also to genuinely serve your company and your employees. So thanks for being here and sharing your knowledge with us.

[Reanna Werner]: My pleasure. Yeah, HR is such a complex beast.

[Randi Lynn Johnson]: So tell us — who are you?

[Reanna Werner]: Professionally, I am the founder and chief problem solver of HR Branches. HR Branches has been serving Colorado small businesses for almost eight years now. We specialize in supporting small businesses with employment matters and employment decisions, making sure that businesses are protected through risk management, as well as building quality leadership skills and capabilities. All roads lead to risk management and risk mitigation through top-notch employment practices — because unfortunately, your employees are your biggest asset, but also your biggest risk.

[Robin Pasley]: That's a good way to put it.

[Randi Lynn Johnson]: So you own HR Branches?

[Reanna Werner]: I do own HR Branches — it's my baby. Not so little anymore, though. We've grown substantially, so I guess it's my medium-sized baby at this point.

[Robin Pasley]: What does the scale of your company look like right now — your team and everything?

[Reanna Werner]: All together, we have seven mighty, amazing team members, and we've got some big exciting things happening this year. On average, we've been growing about 30% year over year. As of just last week, we support about 5,000 local employees regionally and around 7,500 statewide. We do great work.

[Randi Lynn Johnson]: Tell me more about HR Branches. What do you guys do for businesses?

[Reanna Werner]: We have a straightforward business model — we're a membership-based organization. Our philosophy is that understanding human resources practices isn't just a one-time project. We could come in and do a one-time project, but we would fall flat on our faces, because we wouldn't understand your business, your culture, or your leadership philosophy. We believe in building a long-term relationship with our clients so that employment practices can align perfectly with those best practices.

Within each membership, the core foundation is an online HR platform called HR Branches Online — over 800 pages of tools, resources, documents, and checklists covering everything you would ever need to know to self-manage your own HR practices. The problem is, you look at all of that content and think, I don't know what to do with any of this. So we pair every membership with dedicated consulting time. Every single one of our members has their very own HR manager — their direct phone number, their direct email — someone who gets to know you and your business.

When you combine the HR manager with HR Branches Online, you get real power — because the foundational work is already done for you in the platform, and your HR manager can say, "Let's pull this up — here are three options for you, and here's your baseline." From there, you're only customizing. It gives you tremendous bang for your buck. And as you move up in membership levels, you receive additional benefits: employee handbooks, HR audits, harassment prevention training, and more.

[Randi Lynn Johnson]: That's so great. Large corporations have entire in-house HR teams, but you are perfectly suited for small businesses that don't have that capacity — you provide all of those resources.

[Reanna Werner]: Absolutely. Small business has been left behind in the world of HR. Most small businesses are expected to follow and adhere to all of these rules and compliance laws — there are so many things you have to implement — but most of the time, small business owners have no idea what they're supposed to do. Many times throughout the year, I go out and present to the community on just the basic compliance requirements you need to manage your foundational HR functions, and every single time I get a hand in the air saying, "I didn't know about three-quarters of what you just talked about. How am I supposed to find out about this?" The unfortunate answer is that you have to piece it all together yourself and build some baseline knowledge of how all of these laws, rules, and requirements fit together — both at the federal and state level.

[Randi Lynn Johnson]: That's a lot.

[Reanna Werner]: It's scary when you really dig deep and get a clear understanding of everything that impacts your business from an employment standpoint.

How Does Strong HR Compliance Actually Protect Your Business?

[Randi Lynn Johnson]: Would you tell us a little about what it means for employee wellbeing — and ultimately business wellbeing — to have a good HR system in place?

[Reanna Werner]: I love the term wellbeing — it's the right word to describe employment practices. When you look at compliance, the true essence is that each law or rule was put in place to protect your employees. But you also have to consider the health and wellbeing of the business itself. As a small business owner, you have to find the balance between both.

When you bring an employee into your business, you're making an investment. There is no way a business owner can afford to employ someone without seeing a return on that investment. But just like a computer, you have to take care of that investment. You have to run continuous updates — that's training. You have to ensure solid communication and clear expectations. You don't go into your computer and expect it to do jumping jacks when you've only given it data input. You have to set those expectations, those communication standards, and that training.

You have to set your employees up for success, because as leaders, our success is measured by the success of others. We will never be truly successful without the success of our team members, and you have to keep that intentional in your mind. When you have good, productive employees who are happy, thriving, and see a future with you, your compliance risks are going to be mitigated as a result. Of course, there are still specific requirements you need to adhere to — but happy, healthy employees are the foundation.

Now, I don't mean happy as in just doing whatever your employees want. There's an important delineation. You can't allow your employees to walk all over you. Often that creates favoritism — because what one employee wants from you isn't what another employee wants. Consistency in your practices is essential.

[Robin Pasley]: That's so fantastic. There's so much to keep up with, and I love that you have both the platform and the person-to-person consultation — two powerful tools working hand in hand.

[Reanna Werner]: They really are. Funny story — it was a happy little mistake when I first created HR Branches. I sat down at my computer all those years ago, started building HR Branches Online, and had this naïve thought that I was going to launch the platform and then sit on a beach, sip Mai Tais, and watch the money roll in. As I started launching the platform, I realized I was missing one critical component — the human element. There are so many parts and pieces to connect, and people want to talk to people about their people. Once I implemented the HR manager role to support HR Branches Online, the business model really came together.

What Should Small Business Owners Be Watching Right Now?

[Randi Lynn Johnson]: Could you give our listeners three things they should be thinking about right now? We're going to send them to you for help, but three things to keep in mind.

[Reanna Werner]: This year is going to be a critical year in employment. President Trump is being inaugurated into his second term — literally as we speak — and from what I'm hearing, he's said he's going to sign a record-setting number of executive orders. Today alone — let alone the first 90 or 100 days of his presidency — is going to require a lot of attention.

Number one: watch the feds. There's going to be a lot of activity at the federal level. I'm not speaking politically — just administratively. This incoming administration is going to be more business-friendly, which will likely come with some reversals of rules and requirements from the previous administration. But we're also going to see a huge emphasis on immigration.

As we know, border control is a top priority of this incoming administration. The first line of defense for immigration is at the border. The second line of defense is employment. Employers are looked to and relied upon to help police immigration — that's the I-9 form. You need to make sure your I-9s are in tip-top condition going forward. So keep a close eye on the objectives of this presidency, especially in the first hundred days. We are going to see a lot of change.

[Randi Lynn Johnson]: Watch the feds. Got it. What's number two?

[Reanna Werner]: Number two: watch the state. We have a state administration with a different philosophy from the federal one, which is going to create some tension. You'll need to understand how state requirements and laws interact with federal law and vice versa.

The general principle is: wherever you see conflicting rules as an employer, whichever rule best benefits the employee is the one you follow. A good example here in Colorado is paid medical leave. At the state level, we have the FAMLI program. At the federal level, we have FMLA — the Family and Medical Leave Act. They're similar, but they conflict. Colorado's version is more employee-favorable: it applies to all employers in the state, it's paid leave, and it has additional provisions. FMLA only kicks in at 50 or more employees and is unpaid. So you go with the state. The guiding principle is always: go with the most employee-favorable perspective.

How Does Leadership Culture Reduce Employment Risk?

[Randi Lynn Johnson]: Do you have a third?

[Reanna Werner]: Yes — and it circles back to the beginning of our conversation. Number three: be mindful of your culture, and develop yourself as a leader. The stronger leader you are, the better your business will be from an employment standpoint.

Culture and leadership go hand in hand. The way you show up as a leader creates your company culture — because your team members emulate you. They don't just listen to your words. If I walk into work and tell everyone to be happy, they'll roll their eyes. But if I show up every day with genuine energy and create an environment where people actually want to be, that is the culture.

Just as thoughtful design creates workplaces where people perform at their best, intentional leadership creates the human environment your team needs to thrive. Be mindful of how you show up, how you act, how you communicate. Your culture isn't a set of words on the wall; it's the feeling your employees get when they work with you. And that feeling filters through directly to your customers. How your employees feel about working with you will eventually resonate in your customer base. A good leadership philosophy — one that results in a strong culture — is going to mitigate most risk for you.

[Robin Pasley]: Wow. That is a powerful 30,000-foot view that really helps establish who you want to be as a business owner.

[Reanna Werner]: Yeah, and you have to be intentional about it. I've met so many leaders who are genuinely good people, who believe they're good leaders, and who have the potential to be great — they just don't pay much attention to it. They don't intentionally develop themselves, so they end up flying by gut instinct alone. And that's a tough way to lead.

[Robin Pasley]: This idea of being mindful — that your team watches what you do, not just what you say — thinking about the culture you're building every single day is so important.

[Reanna Werner]: Absolutely. We do employee engagement surveys for our clients and two of my favorite questions are: Describe your leader in three words and Describe your culture in three words. It's amazing — they're never exactly the same words, but there's a lot of congruency between the two. I've seen a leader described as direct, fast-paced, and emotional, and then the culture described as demanding, harsh, overworked, and hard to keep up with. It's fascinating how a leader's way of being filters directly into the culture. If you ever get the chance, ask your employees those two questions honestly. It'll tell you a lot.

Just as aligning operations, HR, and design vision creates spaces that truly reflect a business's values, aligning your leadership behavior with your stated culture creates a workplace people want to stay in.

[Randi Lynn Johnson]: That's great. Well, thank you so much for being here. If people need HR help, where can they find you?

[Reanna Werner]: They can find us at hrbranches.com, or give us a call — we're people people, and we'd much rather talk with you. Reach us at 719-244-9640. It's very easy to get started with us. Definitely stalk us online and learn a little more about who we are.

[Randi Lynn Johnson]: And one last thing — you recently launched a podcast!

[Reanna Werner]: Yes! As of January 15th, we launched our very first episode of Show Me Yours. The show is all about having candid conversations with business owners about the number one mistake they've made in business — lessons learned, and sharing all of the business bloopers with a little laughter and vulnerability. It's been a lot of fun. We've even got a commercial launching for the podcast, and there are great show notes where people can pop over and give a listen. And Robin — we're going to have to have you come join us in grandma's living room!

[Robin Pasley]: I love it!

[Randi Lynn Johnson]: Thank you all for listening, and we'll catch you next time. Thank you!