Human Resources Management: 5 Tips for Small Businesses

By  //  April 29, 2021

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Many small businesses do not have a separate human resources department. However, the lack of specialists in the field of human resources can become a problem over time if human resources management is neglected by the entrepreneur. 

In addition, many small business owners do not know what is important in terms of professional employee management. However, all it basically takes is a little forward planning and the right tools to efficiently manage a small business’s human capital. 

The following article highlights the five most common issues regarding employee management for small businesses and practical tips to overcome them. 

Recruiting the right people

Of course, the attraction of sought-after talent in the small business labor market usually turns out to be less than that of large corporations. Therefore, it is important to stand out from the competition in order to be able to find employees who will effectively contribute to the growth of your company. 

For example, small businesses should take advantage of their high flexibility and speed in the application process. They can make the application phases much shorter and thus submit a job offer to the suitable candidates more quickly. The time advantage can also eliminate large competitor companies.  

Pleasant on-boarding

In general, new employees should be made as easy as possible to get started in their new job. This can be achieved through a strategic and well-planned on-boarding process. 

It makes sense, for example, to create a comprehensive employee handbook and to describe the individual process steps of on-boarding in detail in it. The handbook should also cover other important topics such as vacation regulations, company values, social media rules and additional benefits. This way, the employee can get a comprehensive impression of his or her new workplace right from the start.  

Optimizing repetitive tasks

In small businesses, it’s also important to be as thoughtful as possible with time resources. In HR, there are many repetitive tasks that can be completed much more quickly with the help of templates. 

These templates, once created, can then be given to new employees and filled out by them, for example, when it comes to typical employee personal information. 

Efficient management of information

When it comes to researching suitable further training measures or additional benefits, such as private health insurance, a lot of work and time often has to be invested – after all, the aim is to provide maximum added value for both the workforce and the company itself. 

However, it is easy to lose track of the large amounts of contact data and information collected. Therefore, it makes sense to clearly summarize all data once it has been compiled and store it in a central document. 

Delivering bad news professionally

Of course, no one goes out of their way to announce to an employee that their time with the company is coming to an end. However, professional HR management has the right solution for this difficult situation as well, which can make the situation a little easier for everyone involved. 

It makes sense to create a basic guideline in advance for such difficult conversations. This can also include the steps that are legally obligatory when an employee is dismissed from the company. If the conversation is structured strategically, it is possible to maintain a professional relationship at all times, so that it may even be possible to work together again in the future.