HR is for everyone - even the little ones
Published in collaboration with Jessica Panke - Panke HR.
HR is for everyone - even the little ones
Published in collaboration with Jessica Panke - Panke HR.
Many small and medium-sized companies do not have an HR department. They have a bookkeeping department that takes care of administration such as employment contracts, reimbursement of sick pay, vacation, etc. The reason for not having a dedicated HR resource varies depending on the company, but in most cases it's probably because they don't think there's room in the budget - or relevant.
Solving your HR challenges
The 2people system is developed by HR enthusiasts with many years of experience in HR.
We offer a standardized solution that easily can be customized and connected to what's most important to you.
We are ready to help with your HR needs and challenges.
HR is redundant in small businesses, right?
Behind the lack of focus is often an attitude that HR is superfluous in smaller companies. You can't really blame companies for that. This is not where your skills and focus lie. You're very busy running the business, you work almost around the clock and even IF you had the right tools, it's hard to see how you would have time to take care of 'HR stuff' on top of everything else. It's simply a matter of prioritization.
However, there is a rule of thumb that applies to all businesses, regardless of size, industry and number of employees.
And the rule of thumb is that there is a clear link between good leadership, employee development, well-being and the bottom line. Employees are a company's most important resource, and if they don't perform, neither does the company as a whole.
For its own sake, the company has an important task in making sure that its employees are happy, motivated and work according to clear guidelines about tasks, goals and purpose. Then everything will run more smoothly and the company will have a better chance of realizing its full growth potential.
Unfortunately, many small businesses often struggle with a lot of challenges, such as high staff turnover, poor recruitment, sick leave, no structure around performance reviews, no personnel policies or handbook, and managers who are poor at handling difficult conversations with employees. Unfortunately, this also contributes to the fact that you often end up in trouble in relation to labor law. This too often comes at a high cost, which is a shame when much of it could have been avoided if you had the right tools.
So no, HR is definitely not redundant in small businesses. Quite the contrary. HR is hard business.
What does HR actually do?
Yes, it's quite a relevant question: what does HR actually do? I mean, besides administration?
The answer is that HR can help managers free up time and resources, as paradoxical as that sounds.
The recruitment process can be made more efficient and sharper to minimize the risk of recruitment errors and excessive turnover. You can introduce performance reviews that give the company a better strategic overview of what skills are missing and how different employees want to develop.
HR can help reduce high levels of sickness absence by knowing how to uncover causes and establish a sickness absence policy. HR can also help managers become better in their leadership role by sparring on personnel matters, the difficult conversations, how to handle a warning and how to give feedback to employees.
However, it's important to remember that not even a razor-sharp HR person can save the consequences of poor management. The manager still has a responsibility - but with qualified sparring, you'll be better equipped to handle the task. More focus on the connection between good leadership and business development contributes more to productivity, performance and growth.
If you don't have room in your budget to hire an HR employee, it's simply you! Yep, it's the manager who is also the company's HR department. This statement doesn't fit well with the self-image of most managers in smaller companies, but that doesn't make it any less true. And there are actually some things you can do to make working with staff easier and more efficient without setting up a dedicated HR department.
Solving your HR challenges
The 2people system is developed by HR enthusiasts with many years of experience in HR.
We offer a standardized solution that easily can be customized and connected to what's most important to you.
We are ready to help with your HR needs and challenges.
HR annual wheel
It's a good idea to create an annual cycle for the HR activities you definitely have in the company, even if you don't call it HR. In my experience, things get done, but the process is often a bit slow and you spend a disproportionate amount of time on it. If you create an annual wheel, you get a better overview of what needs to be done when and you can better plan your time. Even if you don't have many specific HR activities, there are probably some.
There may be performance reviews, there are probably salary reviews (and yes, as you know, the two reviews are two completely different activities) and there is probably also some work environment work. Maybe there are regular staff meetings, which can also be plotted in the annual calendar. It's especially beneficial if staff meetings are NOT regular, but this is something you want in the future. Other activities can be wellbeing surveys, training activities, management meetings and annual strategy meetings. Most places have a Christmas party, and perhaps a summer party as well. These kinds of social events also fall under 'HR activities'. When you create an annual calendar, you quickly get a good overview of the things going on in the company that concern staff. Perhaps you can also choose to visualize the circular calendar and make it visible to the employees as well. Then they won't be surprised by anything and management will appear more transparent.
MUS
It's a good idea to introduce performance reviews in your company. The advantage of this is that you as a manager get an overview and a common thread between strategy, operations and skills. It creates a connection between the company's goals and the employees, and as a manager, you get to know your employees better. Employees get feedback on their performance and a sense of influence on their own work situation - something that tends to increase motivation. But remember: keep it simple. Use a questionnaire that suits your business, purpose and the employees you have. And finally, remember that an appraisal can never be a substitute for ongoing feedback! It's just a conversation that, unlike ongoing feedback, is documented and can be followed up on.
Recruitment
You can benefit from putting a little more effort into recruitment. Not least because a wrong recruitment is terribly expensive.
Employee handbook
As a company, you want to create a good management framework and conditions. Therefore, an employee handbook should also be seen in a larger context as part of the company's personnel policy. 'Personnel policy' can be defined as the overall principles and guidelines that the organisation wants to apply. It's not a legal requirement for private companies to have an employee handbook, but it's a very good idea.
The employee handbook sets out staff policies and provides greater clarity for employees - but it also gives managers guidelines to lean on, so you don't have to reinvent the wheel every time. Just remember that the employee handbook shouldn't be too long, preferably no more than 35-40 pages. And remember to update it regularly. If you don't have an employee handbook and want to write one, remember to have a lawyer read it through before it becomes 'official'.
Sick leave
Create set procedures for how you will handle sick leave. This could include guidelines for employees on when and how to call in sick (can you send an SMS or should you call in?
What is the latest time of day you can call in sick?) but also firm guidelines for when and how the company follows up on sickness. Even small measures can help reduce sickness absence - they just need to be consistent.
A leader's guide to tough conversations
Unfortunately, employee issues arise from time to time, and no company can completely avoid team conflicts, problematic behavior and poor performance. However, many problems can be nipped in the bud if you have the right tools to deal with them. A warning doesn't have to end in a firing, and a firing doesn't have to end in an expensive unfair dismissal case. You just need to be equipped to handle the above situations correctly - and it's not just about the law. Finally, make sure that your managers are well prepared, and you'll end up with far fewer unpleasant cases: it'll cost you less in both monetary and human costs.
Good luck with your company's growth, prosperity and well-being - with or without an HR department!