“The greatest asset of a company is its people.”
This quote by Jorge Paulo Lemann encapsulates an oft-repeated idea in the business world.
One of the most critical factors for the success of any business is having the right people. For small businesses, it matters even more because they have constrained budgets and expanding operations. So, finding the right people for small businesses can mean the difference between success and failure.
However, dealing with human resources comes with a host of challenges. Here are three of the most significant HR-related challenges small businesses face.
1. FINDING THE RIGHT TALENT: Let’s admit that convincing top talent to join a small company is challenging. Larger companies can easily lure them with attractive perks and salary packages.
Small businesses have limited budgets. Thus, there is little room to repeat the hiring process and invest time and money into training new employees. In most cases, resources available for affordable salaries are hardly up to the mark. Therefore, the company has to put a lot of effort into training them. More tragically, trained resources move their jobs quickly for negligible salary hikes, creating a lose-lose situation for small businesses.
2. RETAINING THE RIGHT TALENT: Even if small companies find the right talent, retaining them can be challenging. The common mistake small business owners make is assuming all resources leave for higher-paying jobs and better benefits. However, it is not the truth. Many factors, such as a company’s work culture, growth opportunities and job satisfaction, play a crucial role in retaining talent.
3. COMPLIANCES: One of the biggest mistakes small businesses make is that they try to do everything on their own. This includes meeting legal and regulatory compliances as well. However, employment laws and market trends are volatile. Therefore, it becomes increasingly difficult for small businesses to address all legal and regulatory submissions without expert guidance, which may further attract penalties in some cases.
What to do?
Small businesses running on tight budgets hardly have a dedicated HR department. Therefore, hiring and retaining skilful employees and fulfilling compliance obligations becomes challenging for them. In such a scenario, outsourcing HR services and availing turn-key HR solutions can relieve stress to a great extent. It can help the organization with the following:
– Developing processes and systems
– Facilitating induction and orientation
– Fulfilling payroll and labour compliance
– Setting KRAs and reviewing performance
– Retaining and terminating
Huminivex Consulting and Training helps small businesses, corporates and industries set up robust policies and procedures that transform their workforce, address current problems and create a culture to sustain in a competitive market.
