Where to Start When Implementing Human Resources into your Small Business
“Human Resources is for the Corporate World”
“I don’t need a Human Resources system; my business is too small”
“Policies, procedures and processes are too restricting, my business doesn’t need these to run well”
These are quotes that small business owners have told me directly. My response to each of these quotes and ones similar is simple:
If you have employees, you can wing it when it comes to finding, keeping and saying good-bye to them, OR you can start with structure.
What does “winging it” look like? Here’s a sample:
When it comes to finding someone, the recruitment process is missing important components in the job posting, the selection process, and the offer.
When it is time to bring the employee on board, the new hire often must learn the ropes on their own because their one day of training missed a few steps.
There isn’t a plan to properly provide feedback to the new and existing employees on their work and raises come at sporadic times without a plan. When it comes to pay, it is mostly a guessing game by the owners, based on what they think is happening in their industry or what the new employee said they were willing to work for.
Over a period of time, when a small business is “winging it” they start to see undesirable patterns in their workforce.
· Tardiness and absenteeism start to become an issue.
· A disconnect in the team creeps up on the business, usually because employees talk and learn that some employees are being treated differently than others.
· Production slows.
· The business becomes a revolving door for staff.
These are just some of the issues that can arise when there is no structure.
If your business is growing and you plan on adding people to it, you need to have a human resources plan. Not when you have ten or more employees, not when you start having issues…right from the beginning.
When there is structure, there is commitment
You may not know much about human resources because it is a business function that is still in its infancy, being just around 100 years old. That doesn’t mean it isn’t as important as the accounting, legal, sales, or marketing parts of your business. In fact, human resources is connected to each one of those functions. If you have a human resources system, you will save your company thousands of reactive dollars; you will save your company from future legal fines and lawsuits; and you will have superstars selling and marketing your products and services.
So, the answer to the question “When is the best time to implement human resources into my small business?”, is as soon as you are ready to hire your first employee.
If you don’t know where to start when it comes to having a human resources plan, you can contact me by scheduling a call with me here:
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