- Small business owners should consider on-demand recruitment for cost-effective results.
- Microenterprises can benefit by keeping a close eye on changing labor laws.
- Providing on the job training can go a long way in improving employee morale which translates into more productivity.
The expansion of small enterprises is essential to the global economy’s health since they create jobs and boost GDP. Although it is difficult to measure, some estimates place the number of small enterprises in the world now at 300 and 400 million. Unfortunately, many of these microenterprises fail every year for various reasons, including subpar HR practices.
Even for a small organization, the range of HR tasks is broad. Your time might be easily consumed, and you can spend hours on HR administration and paperwork. You hardly have time to check that everything is still in the gaps, much less concentrate on expanding and growing your company.
Many small businesses make the mistake of not allocating adequate resources to the human resources department. They are mainly focused on areas like growth, development, and profitability and focus their attention on sales, marketing, and operations. However, the top management of these companies can benefit in the long run by investing in HR.
Best Strategies for Small Business Hiring
A report by SHRM shows that more than 50 % of small businesses handle their HR activities themselves to save money. Another study pointed out that companies with fewer than 49 employees often assign HR functions to individuals with little to no experience in the field.
It is well understood that businesses must maintain dedicated teams to handle specific functions, including HR, as businesses grow. Chrys Martin, a Portland, Ore.-based partner in the employment law practice of law firm Davis Wright Tremaine says:
“You need to reassess every year or so. If you’ve added 20 people, three of them remotely, it’s probably time to move [HR responsibilities] beyond the office manager. When you get to 75 or 100 employees, you need a full-time HR person who can do everything,”
In addition to maintaining a full-fledged HR team, small businesses can incorporate the following strategies:
1. Focus on Employee Engagement
To win over employees’ hearts and minds in the long run, it is essential to involve them in the strategy early on. Only when individuals engage, will your small business hiring strategy transform from abstract ideas to a detailed plan for achievement.
HR can assist in obtaining input from staff members regarding the best course of action for the plan and how it should be implemented. Suppose significant changes are coming, such as a reorganization or the adoption of new technology. In that case, HR can also serve as a “change architect” by developing and implementing the strategies and plans required to guide and convey the transition.
Your profitability may be immediately impacted because motivated and engaged employees are more efficient and less likely to miss work. Whereas reports show that 74% of actively disengaged workers are seeking new employment or keeping an eye out for other opportunities, the opposite is also true.
The below graph shows the US employee engagement trends over the past few years:
2. On-Demand Recruitment
On-demand recruiting is a new hiring model where enterprises need fast and efficient hiring to outsource their recruitment to specialists. On-demand workers may work on-site or remotely, depending on the requirements of the position. Some technical positions, such as Java developers and data engineers, can be filled remotely.
Businesses that face unexpected spikes in recruiting or workforce shortages may find it advantageous to use this flexible hiring method. With on-demand hiring, HR leaders and business owners can accomplish talent acquisition goals without compromising time or productivity.
Small business owners can get access to cutting-edge HR technologies like performance management and save enormous costs by switching to on-demand recruiting. On-demand recruiting also helps them solve urgent hiring challenges without making long-term commitments.
3. Stay Updated On Labor Laws
Labor laws are constantly changing, and these changes impact various employee rights and benefits, including workplace safety. You can keep out of court by adhering to the local laws that apply to you.
The HR department of your company is in charge of defining the rules for attendance, vacation, payment, working hours, benefits, safety, anti-harassment and discrimination, resignations, and termination. A company handbook that includes these regulations and your organization’s vision, mission, and objectives is helpful.
You might also state your expectations for workplace conduct for your staff. It is the HR department’s job to ensure the distribution of the rulebook to all your staff members as part of your routine for new hires.
4. Provide Adequate On-the-job Training
Opportunities for professional development and learning are among the most critical variables in employee engagement, closely related to employee retention. Simply said, HR can boost retention and decrease turnover by providing all employees with learning opportunities and a path to promotion.
This could take the shape of self-paced training through a learning management system or more conventional training programs on- or off-site, depending on your company’s size, industry, and budget.
Providing chances for continued professional growth is critical if the goal is to boost employee motivation and engagement. Employees are eager for opportunities to pick up new abilities. In a Deloitte survey, 80% of millennials said professional growth, on-the-job training, and formal workplace training were crucial to their ability to perform at their best.
The below infographic shows the inclinations of Gen Z and millennial employees toward different forms of training:
5. Focus on Employee Performance Management
The staff members’ performance is vital for a small enterprise’s smooth functioning. You should ensure your workforce has all the technology they’ll need to work effectively before doing anything else. Regularly conduct performance reviews and provide feedback to let staff know how they are doing and where they may make improvements.
Make sure your feedback process is mutual and that you are open to making adjustments in response to employee demands. Always be sure to recognize and thank your staff when they perform well. Additionally, it’s critical to keep staff members informed about corporate objectives and their part in accomplishing them.
6. Recruit the Right Talent
The final step of a robust HR strategy for small businesses is to ensure that you hire the right people. The individuals you hire should be talented and qualified but should also align with the company culture and conform to the core values of your business.
Your small business’s ability to expand fully depends on the employees you bring on board. Your new hires’ values ought to coincide with the mission and culture of the company. They should be enthusiastic about helping you achieve your organizational objectives. Because of this, you must design a candidate experience that clearly communicates the culture and standards of your company.
Be specific about the duties of the position and your ideal applicant when writing job postings. Don’t simply concentrate on the technical abilities; also pay attention to intangible ones like leadership and self-motivation. Interview questions for short-listed candidates should align with the qualifications and character qualities you seek.
Contact Benchpoint immediately, a healthtech recruitment agency with years of proven experience, to learn more about the best HR strategies for small businesses. We’ll help you develop a comprehensive recruitment strategy that will yield the best results at the lowest cost.