Why HR is NOT Just for Big Companies
September 1, 2017
When you employ a small number of people it can be tempting to think you don’t need any HR management. But consider this; the smaller your workforce the bigger the impact each employee has on your business. Which makes effective human resource management more important for smaller companies than large ones. If that hasn’t convinced you, here are five more reasons why HR should be at the top of your to-do list.
HR For Small Companies Isn’t an Option
You might not have the resources, money or time of a larger organisation, but you still hire, fire, train, manage, pay and reward the people in your business. Whether you are doing these things for five, 50, a few hundred or several thousand people, having quality HR policies and practices in place make everything work more efficiently. When your background isn’t HR, it’s worth bringing in an expert to quickly develop what you need.
Maximising ROI and Driving Growth
All businesses rely on their people to deliver on promises and drive growth. Strategic HR for small companies determines the best way to meet your corporate objectives through your people. It will also align your employees in the direction of the business and get everyone pulling in the right direction.
Regardless of size, all businesses can use HR to identify where and how to save on people-related costs and enhance the bottom line. In fact, it can be easier for smaller business to do this because they are more agile and responsive and tend to have greater visibility of the entire organisation.
Gaining and Retaining Talent
Ambitious graduates or those with grand career plans don’t always consider working for smaller employers. But boutique businesses offer a range of benefits that job-seekers are less likely to get with the bigger employers. Enhance your recruitment messaging to show how broader roles and additional responsibility will build a bigger experience base and take top talent away from larger competitors.
Treading the Employment Law
If someone goes off sick, makes a claim for unfair dismissal or discrimination you will need to know your employment law so you can deal with the situation fairly and legally. To make matters worse, employment law is an ever-changing beast and it’s a full-time job to keep up with developments. This make a well-informed HR specialist, whose job it is to be in the know, worth their weight in gold. Plus, the fees to outsource your HR are insignificant in comparison to the potential cost of getting employment law wrong.
Changing Workforce Demographics
With millennial’s soon predicted to account for 75% of the global workforce and with more people working in later life, it’s really important to meet the wide variation in employee needs. HR helps you do this by taking a lead role in developing and maintaining a strong, inclusive working culture that’s effective for both your business and employees.
People are probably the most difficult resource you have to manage and they’re critical in keeping the wheels of your business turning. As a smaller employer, it may not be worth employing a full-time HR role. But there is significant value in managing your human resources effectively. Get the best of both worlds by working with an HR consultant. You’ll benefit from their in-depth HR knowledge while controlling costs and maintaining your existing headcount.
For help with all your HR needs, get in touch on 0330 555 1139 or at email@example.com.