Four Tips for Improving Small Business HR

As with many other aspects of running a business, human resources (HR) usually works differently in smaller companies and startups when compared with larger brands. Small business entrepreneurs tend to be a ‘jack of all trades’, meaning that they end up not only being the manager for their business, but also a salesperson, customer service representative, an HR director, and much more.

As any professional who works in HR will tell you, this type of work can quickly become very time-consuming and start eating into a busy entrepreneur’s schedule. However, the good news is that even if you’re not in a position to afford an in-house HR team, there are some time-saving tips designed to help you manage better.

Tip #1. Invest in the Right Software

When it comes to managing your company’s human resources, having the right software can make all the difference. Today, there are various options to choose from when it comes to HR software which makes a variety of different important processes easier for small and mid-size businesses to manage. Employee management, payroll, and employee benefits are just some of the important HR factors that you can save a huge chunk of time managing with the right kind of software. See this best HR software comparison to get an idea of the right program for you.

Tip #2. Hire Smart

If you’re running a small business that’s growing rapidly and quickly realizing that you are under-staffed, then the hiring process can be daunting enough. However, it’s important to realise that people are one of the most important aspects of your business, so getting the right individuals on your team should matter more to you than simply expanding your workforce. Consider using resources such as employee referral programs or conducting recruitment days for local graduates to hire smarter and get the best talent on your team.

Tip #3. Consider Outsourcing

You might be toying with the idea of outsourcing HR to a professional or agency; for many small and mid-size businesses, this can certainly be a worthwhile investment that ensures employees are managed well whilst giving entrepreneurs more time to focus on other goals within the business. However, if you’re not sure that outsourcing the entire HR department is something that your company is ready for right now, then outsourcing certain specific factors, such as payroll, could be an alternative.

Tip #4. Improve the On-boarding Process

Losing an employee can be seriously costly for a small business, and with statistics showing that large numbers of employees will leave their position within the first six months of starting work, investing in getting your on-boarding process right is vital. Take the time to put together an informative and easy-to-read employee handbook that will ensure all new starters have access to everything that they need to know about their role and your business. In addition, remember that your time is often your most important commodity – taking the time to make new employees feel welcomed and appreciated throughout the on-boarding process will greatly increase the likelihood of them becoming loyal, long-term members of staff.

Did you find these tips useful? We’d love to hear from you in the comments.