Congratulations, you’ve set up a small business and you’re ready to take on the market and flourish! This is a huge step and, while there is plenty to focus on, it’s important that you take time to consider the HR aspect of your business.
While developing a great company culture and offering employee benefits is key, the HR function within your business is a little more complex than this and requires your attention.
Whether you choose to outsource your HR function to save money and time, or you’re going to be tackling these tasks yourself, we’ve put together some top advice for small businesses, from an HR consultancy.
Start with payroll
Research has found that employees who are paid late or paid incorrectly lose trust within the company quickly. In fact, making mistakes with payroll is the fastest way to have employees looking for work elsewhere.
It is imperative that you get payroll right, and that you start setting this up as soon as possible when you open your business. First, set up a strict payment schedule and be sure to stick to it. You’ll also want to make sure you’re compliant with employment law too.
Hiring and retaining talent
Recruitment can be a tricky process, especially if these are the first few hires for your small business. When it comes to hiring people, it’s important to have a plan based on your business objectives. The job description you draw up as well as the questions you ask in the interview process should all be informed by your objectives.
It’s also a good idea to have a clear vision of how each employee could progress in the company through training and experience as this is certainly going to be important to the people you hire.
Another top piece of advice from us is to take your time when recruiting. Don’t hire the first person that fits the role, be sure to interview a wide pool of potential talent before making your decision. After all, you can’t fire the person if you’re not happy with how they fit into the company.
Set up an onboarding process
New employees are more likely to thrive in your business early on if they are onboarded effectively. Before you hire anyone, make sure you have an onboarding process in place with a clear roadmap for your new employee to follow. A great way to get this right is to develop an employee handbook that all new recruits have access to.
By the end of their first week with your company, new employees should understand the company culture, what is required of them, and what their typical day would look like. Be sure to include these details in your onboarding.
Feedback and employee management
Before you start hiring new members of your small business, it’s advisable that you set up a performance management system. Employees need to know what success will look like for them and the goals they should work towards.
You also need to develop a plan for providing feedback to your employees as well as recognising them and rewarding them when they do well – this makes employees feel valued and improves retention.
We suggest that you work on a system that regularly provides your employees with clear, constructive feedback on their work and their progress, so they know what to work on and how to become successful within your company.
As a small business owner, you’re most likely fulfilling several roles and functions at the same time. We also know that you possibly don’t have the budget to hire an on-site HR team as you’re starting out. Outsourcing your HR services to a reputable consultancy may be just the answer you’re looking for if you feel that handling the complex world of HR isn’t for you. Visit our website to find out more about our outsourced HR services.