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5 Top Tips on managing HR in a small business

5 Top Tips on managing HR in a small business

Few entrepreneurs start their own business because they want responsibility for managing people but if their business plan is sound, before you know it your startup is suddenly growing and employing people and with that comes a need for managing HR.  It could be considered that the need for robust HR management is greater in a small enterprise than a global organisation – there is less ability to “carry” those under-performing and there is a greater need to recruit the right person the first time due to the cost of recruiting and training that is incurred.

HR needs to be considered with as much importance as marketing or other support functions. It is an integral part of your organisation and plays a major part in your success. So how best to manage it in a small business?

1) HR personnel

You don’t need to employ an HR department but as a minimum, you need to have named responsible lead. That person needs to be senior and a decision maker, to enable the welfare and management of human resources to be managed effectively and with focus. This does not mean that the lead needs to be an expert in HR but simply be aware of the issues and state of play. This would include health and safety, recruitment (advertising, contracts, induction), payroll and training, as a minimum.

2) Systems

Systems need to be set up and maintained to ensure not only statutory requirements are met, but that the administration does not become overwhelming and unwieldy to manage. There can be a lot of information and data in a robust HR management system and organisation is vital.

3) Employee benefits

Be aware of the marketplace and economy to ensure that your package is appealing to attract and retain talent. This may include pay rates, annual leave allowance, flexi-time policy and benefits such as discounts in local gyms or shops.

4) Training and development

Training and development are vital to ensure that your organisation continues to grow, achieves strategic goals and talent is retained. Training needs to be focused, specific and be assessed for value for money and return on investment.  Develop relationships with training and learning providers who can work with you to meet your training needs in a cost effective way.

5) The legals

And lastly, although most importantly, be aware of statutory and legal requirements and ensure compliance. Each year there are significant changes in employment law and HR related requirements, so all organisations need to not only be up to date, but be aware of changes coming up so they can be planned for and allowed for in the strategic and operational business plan.

If you would like help and support with managing HR in your organisation or have concerns about meeting statutory requirements, we can help keep you informed, and compliant. Here at MAD-HR we provide a variety of HR services, including an online HR Toolkit to keep you compliant, ad hoc HR support and HR strategic development. We are always happy to have a chat and see how we can help support your business growth. Give us a call on 01473 360160 to find out more.

Article by MAD-HR Limited

Running a successful business today is challenging to say the least. To operate efficiently and profitably, managers need to be skilled in the recruitment, induction, leadership and development of their teams. Sometimes you need some assistance, whether that’s for now, for later or the long term. At MAD-HR we understand that such assistance needs to empower managers to lead confidently and nurture their ability, whilst being supported by simple, effective management tools. 

MAD-HR stands for ‘Make a Difference’ HR. Our philosophy is focused on providing premier, outsourced, flexible HR expertise to businesses regardless of their size, driven by great customer service. We can help your businesses thrive, succeed and flourish, keeping you fully in step with UK employment law. Plus, we’re really nice to work with.

Give us a call on 01473 360160 and we’ll talk you through the options to make sure you get exactly what you need.