Top HR Tips for Small Businesses
In micro businesses most of them wear multiple hats, carrying out different responsibilities of multiple roles. To rephrase it “The Jack of All Trades” in such situations it can be tempting to cut back on HR Responsibilities to focus more on other things that bring in revenue. But for any business and especially for small businesses, people are the most essential resource and there should not be any skimp on human resource efforts.
We are here today to cover through our blog the importance of HR and the role it plays.
Managing employees and their requirements needs specific skills that the owners of the business may not have despite owning the business or they may fail to dedicate time to Human Resources and focus on the Revenue Generating part of the business. As the business grows there is simply no time to deal with day-to-day requirements of the people.
Ignoring the HR Strategy? Most organisation discover this as a regret or a costly mistake as it plays an important role in every organisation (whether you know it or not). Risking HR Strategy comes with its cons which include poor hiring practice, poor benefits from the management, higher turnover, poor company loyalty and image and a toxic work environment. Taking on a holistic approach of human resource management strategy can be a valuable competitive advantage for micro businesses.
Mistakes to Avoid
There are five common HR mistakes businesses make, according to author Margaret Jacoby.
These mistakes can cost your small business in the long run, both in money and wasted time.
· Wrong Hire: Micro Business fall victim to filling open positions at the earliest with the lowest cost which in turn does not bring a quality person on board and may lack the exact requirements. Not having a procedure in place for background checks is another red flag to it. Eventually a replacement would have to be found which not just takes up time but reduces productivity.
· No Job Definitions: Business culture now seems to like the idea of “open ended” job descriptions, but you are better off telling your employees specifically what you expect of them. You cannot possibly hire the right person if you do not know the specific job you want them to do.
· No Performance Documentation: All performance reviews, meetings, and issues need to be documented, whether good or bad. If there are performance problems, discuss it with the employee, outline an improvement plan, and document it. You will need this if you end up firing an employee, or you put yourself at risk for legal action.
· Ignoring Employment Laws: You are responsible to follow the employment laws where your business is located. Ignorance or purposeful disregard will not protect you from legal action or problems that may arise.
· Improper Classification: Does your small business use contract employees? Are you sure you are complying with the laws in regard to how you have classified them? Many businesses use contract employees to save money and headache but treat them as if they were full or part time employees. The law eventually comes back to haunt if procedures are not followed.
Prioritizing your HR Strategy is a key step towards Revenue Generation!
