For any business to succeed, it is important to have a team that consists of advisors, mentors, customers, suppliers, and staff. Although some business owners are hesitant to take on employees due to the additional challenges they bring, it is essential to approach life as an employer with the view that you will always do the right thing. By doing so, you can give yourself the best possible chance of winning in an employment tribunal should you be unfortunate enough to end up in one.
To recruit and retain the right people, small business owners need to focus on several HR challenges, such as recruitment, retention, compliance with employment laws, employee development, managing employee performance, equality, diversity and inclusion, employee engagement, adapting to remote/flexible/hybrid working, health and safety, and balancing HR and business needs.
One way to attract the right people is to hire for attitude and train in the skills you need. Moreover, the way you treat, manage, recognize, and reward your employees will impact their decision to stay with your business. Providing opportunities for employee development and career progression can also increase employee satisfaction and retention.
Small business owners can often lack the expertise to understand complex employment laws and regulations, which can lead to costly mistakes. Therefore, it is essential to seek good quality HR advice that is specific to your company and supports your policies and procedures.
Promoting diversity and inclusion in the workplace can be challenging, but implementing robust initiatives can help tap into an additional pool of talent for recruitment purposes. Furthermore, employee engagement is crucial to ensure that employees invest their cognitive, emotional, and behavioral energies towards positive organizational outcomes.
The Covid-19 pandemic has led to many businesses adopting remote work, which presents several HR challenges. However, flexible or hybrid working can be effective in recruiting and retaining the right people and increasing employee engagement. Additionally, small businesses have a legal duty to ensure a healthy and safe working environment for employees.
Although the demand for HR-related tasks increases as small businesses grow, there may not be sufficient resources to hire a dedicated HR professional. An HR system can be a great place to start, and outsourcing HR makes sense for businesses that are too small to have their own in-house manager. Lastly, it is important to work with someone who understands your business and can enable you to comply with your legal obligations as well as manage your staff effectively.