Given just how competitive the business landscape is, small- and medium-sized enterprises (SMEs) need every advantage they can get in order to build a strong organization and truly capitalize on available business opportunities. Behind every successful business, no matter the size or industry, is a competent human resources (HR) team that manages its most valuable assets—its people. And while it might seem like a luxury for smaller businesses like yours, your effort to empower your HR department can significantly impact your company’s growth, employee satisfaction, and overall productivity.
On top of managing payroll for small business owners, a good HR team helps streamline recruitment, handle employee relations, ensure compliance with workplace policies, and foster a positive workplace culture, all of which are essential to your SME’s long-term growth and success. To that end, here’s a list of tips that you can use to build the foundations of a robust HR team that can do all the aforementioned tasks for your SME:
1) Get a Grasp of Your Organization’s Needs
Before you can build a strong HR team for your company, it’s crucial to understand what exactly the latter needs. Start by assessing your current and future HR requirements and identifying the roles and responsibilities that will help manage your workforce effectively. This entails considering what skills and expertise are necessary to handle tasks like recruitment, employee relations, performance management, and compliance. A clear understanding of your needs will enable you to create a solid foundation for your HR team and ensure that team members can align with your business goals.
2) Hire the Right Talent
It’s also essential to find the right people to join your HR team. Make sure, then, to look for HR professionals who have a broad skill set and are capable of handling multiple functions.
In SMEs, HR staff often need to wear many hats, so versatility is key. If hiring full-time employees is not feasible for you due to budget constraints, consider hiring part-time or freelance HR consultants. This approach will allow you to bring in experienced professionals who can manage critical HR tasks without the financial burden of full-time salaries and benefits.
3) Take Advantage of HR Technology Solutions Available to You
SMEs typically have limited resources, but they can always take advantage of contemporary technology to bridge the gap. While it may not be practical to hire a lot of people for your HR department, you can opt to invest in affordable HR software that can automate and streamline various HR processes for you. Tools for recruitment, employee management, and performance reviews can save you valuable time and reduce often costly errors related to HR mistakes.
For instance, there are plenty of reliable payroll management solutions, such as the Philippines’ Maya Disbursements, that allow even just a single HR professional to easily distribute your entire team’s salary and incentives. When onboarded and implemented correctly, the new HR technology can improve your efficiency and allow your HR team to quickly accomplish rote tasks. This will also free them up to focus on more strategic activities that require human insight and decision-making.
4) Focus on Training and Development
To ensure that your HR team remains effective, invest in their continuous learning and development. Provide ongoing training to keep them updated with the latest HR trends, best practices, and legal requirements.
Encourage your HR staff to pursue professional development opportunities as well, such as certifications and workshops. A well-trained HR team will be well-equipped to adapt to changes in your business environment and implement innovative solutions to improve employee engagement and performance.
5) Create Clear Workplace Policies and Procedures
You will also want to work with your HR team to develop comprehensive workplace policies and procedures to maintain consistency and fairness within your organization. Work with your HR team to ensure that these policies align with your business goals and values.
Also, clearly communicate your policies to all employees to prevent misunderstandings and to ensure compliance. Being on the same page with the rest of the organization when it comes to company policies will help you manage employee expectations, resolve conflicts more easily, and create a positive work environment for your company.
6) Outsource When Necessary
Sometimes, outsourcing certain HR tasks can be a more cost-effective solution for SMEs than doing everything HR-related in-house. Complex tasks like compliance, benefits administration, or payroll processing may require specialized knowledge that your in-house team does not have expertise on. Outsourcing these tasks to external experts can help manage costs and ensure accuracy for your processes.
7) Build a Strong Employer Brand
Good branding is key to attracting and retaining top talent. Turn your business into an attractive employer by fostering a positive company culture that reflects your values and mission.
Highlight your workplace environment, employee benefits, and growth opportunities in your recruitment efforts. This will enable you to set your brand apart from competitors and make your organization more attractive to potential employees who would otherwise consider your immediate competitors or larger corporations over yours.
Your workplace brand also has the added benefit of making your employees happy, engaged, and more likely to stay with your organization. Knowing this, work with your HR team to spearhead a company culture that both old and new employees can be proud to participate in.
8) Measure and Improve
Regularly assessing the performance of your HR team and processes is essential for your organization’s continuous improvement. Use metrics and feedback to evaluate the effectiveness of your HR initiatives. This will allow you to identify areas for improvement and make necessary adjustments to enhance efficiency and employee satisfaction.
9) Stay Compliant with Your Local Labor Laws and Regulations
Part of your HR team’s top responsibilities is ensuring compliance with the labor laws and regulations of the country you consider your home base. Staying compliant helps prevent legal issues and protects your business from potential fines and penalties related to labor violations. Make sure, then, that your team keeps up with the latest requirements and that your HR policies and practices are consistent with local laws.
Even if it’s not necessarily a unit that makes you money, a well-structured HR team can be an invaluable asset to your company with regard to its contributions toward productivity, employee engagement, and business growth. Follow the tips above and commit to continuously improving your HR practices, as this is how you will be able to build an HR team that supports your company’s success.
