Smart HR for the SME
Small to medium sized enterprises may have fewer employees than larger conglomerates and international organisations, but running an SME doesn’t mean there’s less work to be done.
Often, with SMEs, one vital component of running a successful business is either left to the owner/CEO, or receptionist/bookkeeper: Human Resources.
More Than Hiring
Human Resource Management is more than just the practice of finding great talent but owners and managers of SMEs may not actually have the time to dedicate their energy and resources to the things involved in effective HRM. When you’re focused on moving the company forward, HRM may suffer and the result can be detrimental to your organisation.
Common HR Challenges for SMEs
According to research, the most commonly cited HR challenges for SMEs are:
- Job roles and organisation structures
- Performance management or appraisals
- Motivation, engagement, or retention
- Flexible work availability
- Training and development
- Managing change/redundancies
- Administration, policies, or processes
Regional nuances offer uniques challenges, and as SME’s contribute substantially to workforce and GDP, it is clearly important for owners andor managers to learn ways to overcome these challenges
Steps to Overcome HR Challenges
When you’re stretched too thin within your role as a manager or owner, it can seem overwhelming to develop a human resource management strategy but there are some simple steps you can take that will lighten the load and make the process more streamlined and effective.
Develop Clear Job Descriptions
Not only can job descriptions help your employees understand what is expected of them, but it can also help you to clearly identify the skills and talents required to perform each job properly. This means there will be no guesswork when it comes to hiring the right people for the right job. In addition, an employee handbook can help employees understand what to do and not do, and what policies and procedures should be followed.
Strengthen Your Employer Brand
Consider that research has shown that the overwhelming majority of workers – 86 percent – would not continue to work for (or would not apply to) a company with a bad reputation and 65 percent said they would leave their company if it were being negatively portrayed to the public.
Your company culture is a vital part of a strong employer brand. A clear understanding of your organisation’s vision, mission, and ethics are all aspects that contribute to your company’s culture.
What is it like to work for your company? This is what many of today’s employees want to know before they apply to work for you. Be sure your employer brand helps you to stand out as a company that people want to work for.
Implement Training and Development
Not only does Training and Development (T&D) improve your employer brand, it is vital to the productivity of your employees. For SMEs, a great T&D doesn’t have to be expensive; there are many online courses available that are free or low-cost that can elevate employees’ skills and talents and since many SMEs are evolving, training employees to utilize additional skills will help your company grow.
Appreciate to Motivate and Engage
Employee motivation is highly correlated with job involvement and employees are more incentivised when their employers include them in goal-setting because they have an investment in the work that needs to be done.
Interestingly, research has shown that, while pay and benefits are important factors in motivating employees, they’re not the top of the list. In fact, compensation is not even in the top three.
Today’s employees are more concerned about having a great work environment that provides them with recognition and encouragement and this is one benefit for SME’s because it’s not a costly investment to recognize people for a job well-done.
At GTM, we are prepared to help your SME tackle the many challenges associated with staying on top of the best practices, policies, and procedures to help elevate your SME to new heights. Contact us today to schedule a free consultation now.