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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