10 HR Tips For Small Business Entrepreneurs

Human resource is an essential asset in every business. Most small businesses can explain distinctly about their business goals, promotional plan, pricing strategy, etc. But when you ask them about how do they handle their human resource? Surely, most of the business owners will be dismissive when you encounter such type of question.

In many cases, the small business entrepreneur will take care of human resources responsibilities. The HR functionalities can be accounting, administration, leave policy, etc.

Few small business owners outsource payroll professional and insurance agent to handle their human resources. These people often charge a huge amount. In such cases, there are online HR service providers that come into hand. They provide effective HR services and employment law support for small business.

Following are the top 10 human resource tips for small business owners

1. Assign HR responsibilities

Assign roles and responsibilities for each HR team member. The HR manager manages the procurement of HR services, employment law policies within a small business.

Depending upon industry, the human resources manager responsibilities may vary. Manager owns leadership responsibility to function effectively in every department. The HR manager is intimately associated with making decision, suggestions, execution and review.

Key responsibilities for HR need to be assigned with respect to their interest departments.

2. Communicate Regularly

Build best communication in the workplace. How you communicate with your team is important. Good communication within team distributes harmony among the group and also provides everyone equal chance to learn. Communication also helps you see the difference between good and poor leadership skills. Therefore, effective communication is a perfect solution to ensure good leadership qualities.

Good communication can build a lasting relationship with your team. Also, encourage a strong and healthy work environment. Efficient communication will let you get a job done quickly in a professional way.

Amazing ways to build effective communication in small business

  • Open meeting
  • Emails
  • One-on-One meeting
  • Create a responsive environment
  • Communication via training
  • Use visuals in presentations
  • Use body language and proper tone of voice
  • Be appreciative

3. Stay Organised

Being organised is an important component of HR. You must stay wisely in order to handle HR operations in a small business. Assigning task and catching up every day helps you stay on top of everything. Prioritise each task according to how important the task is. Follow up on the latest resumes and conduct an interview for a new hire.

It always takes a good amount of time to sort out your daily task list. Thereby you don’t need to worry about incomplete task and deadlines.

4. Take time to hire the right person

Hiring the right person is a challenging process in small business. Sometimes hiring a wrong person is expensive and tiring. Hiring the right person can enhance a positive impact on the work environment and increases your productivity.

A right employee can think positive and achieve business goals.

Checklist for hiring the right person

  • Define the job before hiring a person
  • Prepare an effective recruiting strategy
  • Use a checklist
  • Recruit the right candidate
  • Review candidate credentials and applications
  • Prescreen candidates
  • Ask right interview questions
  • Check educational background and reference
  • Build an effective appointment lette

5. Maintain professional boundaries

Small business owners treat their employee as family members. Creating a closeness with employees can improve performance. Most people spend their maximum days at the workplace. That work may drain into your life at home. Therefore building a healthy work environment is important to balance professional and personal life.

Creating professional boundaries at work is quite hard. There is the real concern of being fired or demoted. Make sure that ‘you teach persons how to treat you’. Having a clear communication and preparation you can maintain professional boundaries with owner, clients and colleagues.

6. Salary and Benefits

Look around at the market place in order to benchmark against your business competitors and locality. Doing this process in the right way can help the salary and benefits you offer to candidates. Make sure to conduct this survey whenever you need to review, holiday allowance and Holiday allowance.

Employee benefits are non-salary compensation that can differ from business to business. The additional benefits are provided by the business in addition to salary to offer a competitive salary package for your employee.

Provide additional benefits to employees such as health insurance, staff discounts and flexible working time.

7. Training and Development

Training and development are two important essentials for any organization. It helps to grow continuously, achieve company objective and retain talent.

Training is a process that helps employees study about specific technology or skills. The training will help to improve employee performance in their current designations.

Development focus on employee carrier growth and future performance.

Offering good training and development to an employee can help small business to retain the right employee and increase maximum ROI.

Advantages of training and development:

  • Profit growth
  • Reduced employee turnover
  • Improve engagement

8. Build a positive workplace culture

Every organization has a unique culture that denotes values and visions of a company. A positive workplace culture help to improve teamwork and increases productivity effectively.

The behaviour of your employees towards your company can create a work culture.

These are a few top ways to build a positive work culture

  • Determine your business values and vision as a team
  • Positive communication
  • Employee feedback improve engagement
  • Care and concern
  • Always welcome new ideas
  • Appreciate with rewards

For a business to succeed, you need to look after your employees and build a positive company culture. When you create positive vibrations at the office. You are giving a reason for the employee to look forward to heading to the job early morning.

9. Bring on the cheer

Knowing and engaging with your employee can create a huge impact on staff satisfaction and performance.

  • During the festival days offer breakfast and lunch to your employees.
  • Plan a themed event such as a potluck, cookie swap on holidays. Scheduling on holiday can cut down on the organization owner costs.
  • Ask your employee to invite their family members to holiday events.
  • Connect with their families on a personal level.

10. Hone your leadership skills

Leadership is the most difficult competency for small business now and also in the upcoming decade. Small business will often replace their designation right from employee to managers.

If you are the one who is looking to strive to hold a leadership role. Then it is the right time for you to sharpen your skill set for even better.

  • Work on your soft skills
  • Improve can-do attitudes
  • Develop your project management skills
  • Earn respect from colleagues
  • Learn from leaders who encourage you
  • Be flexible
  • Master to delegate