Often seen as the preserve of bigger businesses with dedicated HR departments, good HR and people management is actually good for the long-term growth of small businesses, according to a new report from the Chartered Institute of Personnel and Development. Making sure you have the right people on board and that your employees are enthusiastic about and involved in achieving your goals are key to success, whatever stage of growth a business is at and regardless of whether it has a dedicated HR function. The report identifies six insights for those responsible for HR activities: 1. Be prepared Your readiness to adapt to challenging business conditions and your relevance to the market will determine how successful your business is. Managers and others responsible for HR must have a good understanding of your organisation’s strategy, vision and values in order to anticipate key stages of growth and transition that may require a shift in HR strategy and practices. 2. Share your organisation’s values Organisation values need to be at the very centre of your business. Managers must work hard to preserve the owner’s founding vision and the company’s values by making them part of how the organisation and its people work on a day-to-day basis. 3. Stay in the know Managers should stay up to date with HR insights and be confident in using them to manage people and future challenges to influence long term performance. 4. Keep it simple Simplicity of structure and process encourages innovation and entrepreneurship. Although more processes and structure will be needed as a business grows, it’s important to find the right balance between structure and flexibility so that entrepreneurial spirit is not undermined by bureaucracy. 5. Strike a balance between preservation and evolution Rather than being sentimental about what has always been, it is often necessary to let go of processes or aspects of the organisation’s culture that no longer support its goals and priorities. 6. Look to the future Look beyond immediate operational issues and take the opportunity to plan for the future – process driven responses to challenges as a business grows may only provide short term solutions and miss a golden opportunity to support the longer-term goals of the organisation. For further advice on HR and people management, plus employment law advice, find out how the Forum of Private Business can help your business. Call us now on 0845 130 1722. Original source: CIPD
Often seen as the preserve of bigger businesses with dedicated HR departments, good HR and people management is actually good for the long-term growth of small businesses, according to a new report from the Chartered Institute of Personnel Development.