Do you have a human resource professional on your staff or one you consult with? Do you have a system for your HRM needs?
Most small business owners do not believe they need to focus on human resource management (HRM) believing HRM is for large businesses and corporations; however, with an HRM system in place, there is actually a positive correlation between labor productivity and financial performance for small business owners who focus on HRM.
Score.org provided the infographic below demonstrating small businesses in today’s workforce and why human resource management is needed. As noted below, 25-35% of small business owners’ time is spent on HRM with 7-25% of that time is filling out paperwork. Is that what you want to spend your time on?
Infographic, 2014 21 – https://www.score.org/resource/infographic-work-me-people-statistics-small-business-human-resource-trends
Human Resource Strategic Planning will lead to success and growth potential. All personnel, whether directly or indirectly in contact with customers, suppliers, or other stakeholders should be capable, focused on your business’ success and happy in their position.
What exactly does HRM include?
Strategic HRM: Align all employee’s work with the strategic goals and mission, vision and values of the firm
Talent Acquisition: All workforce planning tasks from determining the position to the job offer
Employment Engagement & Retention: Onboarding, ensuring all documents and policies are in place, and establishing commitment to the organization
Learning & Development: Skill assessment for current and future leaders and training employees on a regular basis
Total Rewards: Tools available to an employer that may be used to attract, motivate and retain employees including monetary compensation and benefits
Employment Law & Regulations: Be up-to-date on all legislation affecting your business
Worker Protection: HR serves and offers its products and services to managers and it offers services and the protection to employees.
Strategic Management is where HRM needs to start with a business-small or large- since labor productivity affects financial performance.
How do you do this? While you may not need a full-time or even part-time staff, consultants can be hired to assist with HRM needs.
Conduct a needs analysis to determine where your company is and where you want it to be.
Your biggest asset and cost lies in your labor. Employees may be the first face or voice a potential client sees or hears. Are they providing what you need? Invest in your employees to reap the financial rewards and success in your small business!