5 Tips for managing HR in small businesses
Posted on 6th June 2018 at 11:27
If you asked a business owner about their business plan, pricing strategy, marketing plan or even their social media approach, most would be able to give you a fairly detailed answer. This is because they are considered ‘essential’ business practices (and they are). But if you ask them about their plan for HR and how they’ll be managing their human resources, most will probably say ‘I’ll worry about it at the time’. Despite being one of the most critical elements of running a business, HR is often the thing that’s left until last, and only implemented when it’s needed and not a moment before. But many smaller business owners aren’t sure how to manage an HR function – so we’re here to help.
As a small business you probably don’t need to employ a whole HR department, but as a minimum you should have one person who is qualified and responsible for taking the lead on HR related issues. This could be an outsource HR support company, or it could be an individual within your business. Whatever you choose, this person needs to be senior and a decision maker, so that they can be focussed on ensuring the welfare and management of your employees. This doesn’t mean they have to be an expert in HR (though that is preferred), but they do need to be aware of the issues and state of play. This includes things like health and safety, recruitment, payroll and disciplinary processes.
If you want to make sure you’re meeting all of your statutory requirements, then you need to put some systems in place to manage your HR needs. Setting these up also means that the administration element of HR doesn’t become too much of a burden, since many tasks can be automated or made easier by using specialist software. There can be a lot of information and data required for effective HR, so a robust HR management system is vital.
If you’re looking to attract and retain top talent for your business, then you need to be aware of the marketplace and economy so that you can create the right package. This might include pay rates, annual leave allowances, flexi-time polices and even benefits like discounts in local shops or gyms.
Training and Development
Training and development are both very important aspects of the employee journey, and are one of the ways you can make sure your organisation continues to grow, achieve strategic goals and keep the talent you have. But training needs to be focussed specific and deliver value for money to the business and the employees. To make sure you get all of this, your HR function needs to be able to develop relationships with training and learning providers who can work with you to meet your training needs in a cost effective way.
The Legal Bits
And of course, there’s the legal side of things. There are a lot of legal and statutory requirements you have as an employer towards your employees. But keeping track of them all (and making sure you’re complying with them) if almost a full-time job in itself. Every year there are significant changes in employment law and HR requirements, so you need to make sure your business is up to date and aware of what’s coming up on the horizon.
But of course, finding someone to do all of that inside your business isn’t always easy, or even possible. That’s where we can help. If you would like help and support with managing HR in your organisation, or have concerns about meeting all of your requirements as an employer, we would love to help. Just get in touch with us at AJ HR Solutions today for your free consultation.
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