What Are The Benefits Of HR Principles?

Since establishing Kea HR in 2006 I’ve helped many, many small business owners solve their people problems and introduce smooth flowing HR processes that save their time.

When Human Resources is discussed it is often the larger businesses and public services that are the reference points. However, smaller businesses can benefit from using the services of HR professionals, particular those going through periods of change or growth.

In many small businesses, especially in the early stage of the company’s development, HR is usually handled on an ad hoc, reactive basis by the Managing Director or Financial Director. But reacting to problems as they arise is time consuming for you and confusing for your employees as they may receive different answers to the same question.

Many of the Directors I talk to fear that the introduction of formalised policies will have a negative impact on the running of the business by being overly bureaucratic. Whilst I do believe it’s essential to have the discipline that a documented and well-communicated strategy offers to have a smooth running business I do also believe it is vital to get the balance right.

What Are The Benefits of Introducing HR Principles To Your Business?

The introduction of an effective HR strategy with appropriate policies and procedures should have the aim of freeing up the Directors and other senior level staff from being so involved in day to day HR issues so that they can concentrate more fully on growing the business.

Here are the key benefits of introducing HR principles to any business, no matter how many employees they have…

Recruitment Button Improved Recruitment Processes
In a small business the consequences of recruiting the wrong employee are extremely high. Not just in financial terms but in the time taken away from running the business to interview the candidates, induct the new employee, assess their performance and what’s going wrong and deciding on an appropriate exit strategy. Then when they’ve gone and the dust has settled you have to start the process again.
A robust recruitment process will ensure you find the right employees, for the right roles, at the right time. Every time you recruit!
Communication Button Improved Communication
It’s important in any business that every employee receives the same message rather than the edited and embellished version from the team gossip!
When you begin to communicate with your employees in a consistent way, with clear objectives and timescales, they will gain a better understanding of your expectations and company goals.
Performance Button Improved Performance
Employees perform best when they are clear what they are required to do; are trained to do it and feel rewarded and valued. You cannot monitor or manage an employee’s performance unless you are both clear about what you require them to do and the standards you require them to achieve. The key documents you should have in place for every employee are: job description, offer letter, contract of employment and an employee handbook.
Your team will be committed to the success of your business and will be working 100% towards achieving your business goals!
Attendance Button Reduced Absence and Improved Attendance
When employees don’t show up for work the work doesn’t get done! And that causes problems in any business. Establishing a clear policy that promotes a positive attendance culture is key. You and your managers will gain the confidence and knowledge to tackle absence issues fairly, robustly and in a timely manner.
Happy workers are less likely to miss work.
Productivity Button 1 Increased Productivity
Your employees take the success of your business seriously and each one will possess, or be working towards, the competencies they need to succeed and help you achieve your goals.
Ensure each employee is working at their full potential will help grow your business and generate more long-term profits.
Stable Workforce Button Stable Workforce
Recruiting and training new employees is a time consuming exercise which you don’t want to be repeating too often.
Solid HR processes provide happier, more productive employees, who stay with you longer.

Fundamentally HR is about ensuring that each employee is happy in what they are doing and where they are doing it. Why? Because a happy employee will be productive, innovative and above all loyal.

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Solid HR processes provide happier, more productive employees, who stay with you longer