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Published on October 21st, 2014 | by admin

Human Resource Issues For Small Business Owners

For any budding small business owner with ambitious plans for growth, it is inevitable that recruitment of staff will be an integral element of such lofty plans and ambitions. Getting it right is imperative bearing in mind that the strongest asset to a small firm is its staff.

The latest figures from the Federation of Small Businesses (FSB), recently revealed record confidence among UK small businesses with three fifths surveyed (61%) expecting to grow in the next 12 months.

A co-ordinated recruitment strategy for attracting the right people is something we’ve discussed previously. But once the right staff members have been identified and selected, staff retention and development is vital.

In a report by Jill Miller, research adviser at the CIPD and author of the report ‘Achieving sustainable organisation through HR in SMEs’, she identifies that there are four stages of SME transition, each associated with different people management practices and the person who delivers it.

Related to size and organisational maturity, these stages are: entrepreneurial edge, emerging enterprise, consolidating organisation and established organisation.

The progression of an organisation through these stages of development and growth will inevitably lead to a number of HR related issues and challenges. Continually driving high performance by everyone within a team is one such issue which requires ongoing monitoring of output by each employee which can be measured via regular reviews and formal appraisals.

Finally, it is crucial to keep the essence of an SME culture even as growth is achieved which means maintaining an energetic, fast-moving culture which often symbolises  the culture of a small company which can be more nimble and responsive in its approach to business.

Ensuring an appreciation of the value of HR as a driver for growth as opposed to an unnecessary overhead is vital which means business owners need ‘to do HR properly’ and evaluating everyone’s contribution is a good place to start.

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