This is the question many small business owners have on their mind. Well, this is the right place for you to know the answer.
HRM is the same for all businesses. The workings are the same, but their could be some differences in terms of size. Here is some more information for you as to why HRM is needed in small businesses and why HRM is important:
Human Resource Management is a very important component of any business. If you think because you own a small business, the number of employees is small so you can handle all the workings, then you should rethink your decision.
Managers handling employee relations, disciplining them, if you think this is enough so you can cut your costs by doing out with an HR department then you should go on reading this.
Here are some reasons which can help you rethink why you should consider a Human Resource Department right when you start your business:
Human Resources have to get for your business, the right talent. The right fit for your company who can give to your business an edge and compliment your business. Someone who has the right skill, ability and knowledge. Therefore, a lot of time could be spent on acquiring the right talent. Now-a-days recruitment can be done from LinkedIn, job market places and social media sites. For the owner of the business or the manager to be scouring these places for talent when they could be doing other work which they specialise in, or would find more important. Of course, finding talent is important but planning out other important schedules for your business is important too. Handling everything yourself is never the right way to go. It’s better to leave work to the people who are best at it.
People have the misconception that HRM only means hiring and firing. This is not the case. HRM also means taking care of the payroll of employees, checking the attendance of the employees, performance, benefits and many more.
Employment Laws are something the HR department knows in and out. If, while making the contract with an employee you don’t know the laws and when you fire and terminate the employees’ contract then the business might be slapped with a lawsuit which is not ideal for any type of business. This is a point that most people forget about and don’t think about as much, but it is a huge factor to take into consideration.
Employees in your business, no matter how small in number, should have a manual or handbook which lays down the regulation of your organisation. To keep discipline, and not to have a huge internal conflict, some rules and regulations have to be laid down and the employees should be aware of this. The handbook can be prepared by the HR department but don’t forget to get it checked once more by an employment lawyer to ensure you are complaint with the law!
Training and Development of employees is crucial. You will be surprised to know that it is also the same for small businesses. By cross-training employees, so that they can cover more than one job is one way of making employees learn new skills and increasing their abilities. This can also be done through low-cost ways which can be organised by your HR department.
Resolving conflicts therefore is another work for the HR department.
Files which are related to the employees also have to be kept. The HR department will know which files should be made, when they are to be updated and they will keep them in the right place and make these files easily accessible.
Once all the paperwork is done, HR is also responsible for keeping the employees happy and motivated. This is done by monitoring the relationships, conflicts and also culture in the workplace. They keep a look out for any conflicts in the workplace or any negative word of mouth going around between employees. Trying to help out as much as they can to keep the workplace a happy one, as who knows better than them that a happy workplace is one where there is more productivity.
Thus, in conclusion, as stated above, there is no difference in HRMs for small business or other businesses. The amount of work and the HR employee numbers could be less but the work is the same and it is a necessity in any form of business.
Point to be noted: On the rise are HR softwares which are which is a software that helps in managing employees, information and other HR related tasks. This software helps automate manual tasks. Check this link out to see some free HR softwares.
Here is another link I leave for the Top 10 emerging HR trends.
TAKE NOTE – You don’t need to hire a full-time employee for your HR department. You can also hire part time workers, just one HR employee or opt to outsource your HR functions. These could be options you can think about which could help you minimise your costs but still have an HR department by your side, making your work easier and making your business more efficient.
Chyoetten Gyamtso
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