Small and medium-sized businesses frequently ignore human resources with the idea that they will deal with people management once the company is successful. If you share this viewpoint, you couldn’t be more wrong. HR is a necessity to businesses of all sizes and kinds, specifically because no matter how shrewd, wise, or vigilant an entrepreneur is, dealing with people requires special skills and takes time to acclimate.
Understandably, the importance of HR may not be immediately apparent, but over time, it becomes clear. Imagine yourself in a crisis when you, as the business owner, are preoccupied trying to figure out how the company will survive, but your employees need to feel supported and you aren’t there to assist. Or when your workers need to complain about excessive hours and other problems but have no one to turn to, which results in low motivation.
We wager that you can already see how important HR is and in this post, we’re going to explain why, even as an SME, you need an HR department. Check out HR talent recruitment agencies if you need new personnel for your company’s HR department. Here are the crucial roles that HR would play.
4 Key Functions of Human Resources in SMEs
1). Recruitment and Onboarding
It’s the most obvious HR role. While you may know what you’re looking for in employees, the advertising, evaluation, and hiring process can be quite challenging. For this reason, HR is essential. Without HR, you run the risk of spending a lot of time, effort, and money on hiring personnel just to have it go wrong. For your firm to be successful, you must hire the correct number of applicants with the proper skills.
In addition to recruiting, you should consider onboarding. It entails the hiring, embracing, acclimating, and engaging of new hires while assisting them in assimilating into the culture of your company. Even though it’s frequently overlooked, assisting new hires in assimilating into the corporate culture is an essential procedure.
2). Performance Management and Training
Running a business takes a lot of time, effort, and research; it’s the only way to scale new heights. Seeing as you can only do so much, why not handle that and let HR worry about your employees? HR is all about managing and growing your workforce to ensure they reach their potential and contribute to the success of your company.
That said, an efficient performance management system enables managers to assist workers who require it and spot potential stars. This helps promote a more positive culture, improves employee engagement, increases productivity, and lowers employee turnover. HR also helps identify and strengthen any weak points within the organization, giving your company a competitive edge.
3). Creating and Upholding a Positive Company Culture
Positive corporate culture is no longer a luxury, it’s a need. It determines corporate success and promotes employee engagement, job satisfaction, and staff retention. Luckily, with HR, you don’t have to worry about how to make it happen; they will develop and reinforce the company’s culture and adapt to change accordingly.
HR is in charge of several critical facets of organizational culture. These include pay, performance management, hiring and onboarding, training and development, and reiterating corporate values. Keep in mind that it’s difficult to get the culture right. It demands constant nurturing and a multifaceted strategy. Essentially, HR is crucial in establishing the correct tone for the workplace culture.
4). Legal and Regulatory Compliance
HR specialists comprehend employment law and the rules that apply to businesses that employ people. This vast area shouldn’t be undervalued; making an unjust dismissal lawsuit can be costly. If you’d like to avoid such a mistake, consider an HR department.
HR After COVID-19
Given that we’re living in dire times, we’re forced to reevaluate how we conduct business. To be more specific, the coronavirus pandemic made us rethink how we conduct business.
HR departments are now the heart of businesses, especially because of the effects of the pandemic on the workforce. These include continuous economic instability, remote working, and an all-too-real impact on employees’ mental health. It’s now evident that the choices businesses make and the way they treat their employees are important performance indicators.
Having an HR department however that looks like, even if it’s manned by a single person is crucial, not just to large businesses but to SMEs as well. By doing this, entrepreneurs can focus on expanding their companies knowing that they have someone to handle employment-related issues while keeping the company compliant. Get yourself an HR specialist today to realize the difference!