Managing HR in a Small Business
HRs for small business is just as important as it is for any
large corporation. Perhaps, its importance is even greater, since small
businesses are, well, small. There is no room for error, as poorly-prepped and
underperforming employees have nowhere to hide.
In order to compete with larger competitors, small
businesses need to be energetic, fresh, and nimble. To gain an edge over
rivals, recruiting and retaining crucial staff is critical.
Lack of an HR Department
HRs for small business are few, largely because they do not
have enough resources to build a highly-skilled workforce. Additionally, they
are unable to acquire a flexible and productive workforce that allows small
businesses to compete with other small businesses, let alone large
corporations.
You will be surprised to know that there many small
businesses lack an HR department; in fact, they may not even have a person
responsible for carrying out important HR-related tasks. According to the CIPD
(Chartered Institute of Personnel and Development), a minuscule 29% of micro-companies
and 47% of small businesses have no more than one persona to take on an HR
role.
Give Someone Responsible an HR Role
Just because a company does not have a full-time HR officer,
manager, or director, does not mean it cannot be progressive, ambitious, and
efficient when it comes to personnel management. HRs for small businesses does
not have to be an elaborate team, and can even compromise of just one
individual, a responsible one at that.
As soon as a small business takes flight, it should give
someone responsible for an HR role. It has to be someone who can make tough
decisions, like a partner in the business or the managing director.
Once the individual has been given the responsibility,
he/she should focus on the development and administration of employees by any
means necessary.
Designate the Right Responsibilities
Just because you have an individual taking care of HR does
not mean you are out for the count. Many responsibilities need to be taken on
by the individual, some involving essential functions and legal requirements of
the business. The most important ones that should be given top-priority are as
follows:
·
Recruitment
Recruitment is one of the most vital roles to be fulfilled
by HRs for small business or any business for that matter. The individual in
charge needs to develop an effective process of attracting the best talent and
retaining them in the long run.
·
Payroll
This area of HR involves several legal requirements that
need to be managed so that tax deducted, payslips, payment amounts, and so on,
are done without on time and without error.
·
Training
When employees are trained in their job, it will positively
affect the overall operations of a business.
·
Health & Safety
Employers are legally obligated to keep their staff safe and
taking the necessary precautionary measures to reduce risks at the workplace.
·
Benefits
It is imperative to track and manage benefits offered by the
company, including disability insurance, health and dental coverage, pensions,
etc.
It is quite evident that HRs for small business is a necessity rather than a luxury. Small businesses that attempt to do without an HR department do more harm than good. So, if you want your small business to succeed, it is high time you focus on building an HR department that brings value to your company.
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