Choosing your first employee
Hiring your first employee when HR first enters the picture is a watershed event for any small business.
You must follow HR norms and protocols even if you only have one employee or risk ending up in front of an employment tribunal defending yourself against a single dissatisfied employee.
Human resources comprise telling your staff about their responsibilities, working hours and locations, holiday entitlement, payment systems, and sick leave regulations at their most basic level. This could be placed in an employee handbook or an employment contract.
Many business owners are apprehensive of hiring because of the risks; however, adding employees can help your company expand from surviving to flourishing.
Ten HR pointers
Donna Obstfeld, an HR specialist, has written an exclusive piece for SmallBusiness about the top ten items to think about while managing employees.
How do you pick an HR policy for your small business?
Writing out your HR policy allows you to define the basic goal of your company, enthusing employees, even if they are just a few, about the company’s vision. What is the purpose of your trip?
HR policy sits alongside your marketing strategy and financial policy when it comes to day-to-day operations. But it’s more than just a set of rules; it’s a document that explains who you are and your core values.
An introduction to HR outsourcing
Outsourcing HR makes sense for firms too small to have their HR manager. HR departments are rare in businesses with fewer than 50 employees. Instead, a senior executive with HR knowledge may have been assigned to the post in the past. This puts your small business at risk of legal action if HR policies are not followed to the letter, but it also takes time away from his or her day job.
Alternatively, dealing with HR on your own takes time away from running your business and lowers productivity – one of the most significant challenges that any small business faces.
Given the continued cost-of-living crisis, rising inflation, and skyrocketing wage expenses, businesses will be seeking ways to save money.
HR outsourcing vs. in-house HR management
Outsourcing all aspects of HR can be a cost-effective way to save money while obtaining access to expert knowledge.
When approaching an outsourced HR provider, be clear about what you need from the start to avoid a one-size-fits-all approach.
Whether you do it in-house or outsource it depends on your firm’s priorities.
How to Choose an HR Outsourcing Firm
Start with what they’ve done before (and which sectors their clients are in). You’ll know you’re onto a winner if they’ve worked with numerous past clients in your industry, with bonus points if they’re larger and more well-known.
On the other hand, having proof of qualifications offers you trust in their abilities and the services they can supply.
Consider how their services align with your company’s long-term growth goals and predictions.
After that, look for any hidden fees. Is there a penalty or price for ending the contract early? The company may appear to be less expensive at first sight, but they may surprise you with additional costs like the worst budget airlines.
Check the payment and contract terms for clarity while you’re there. Flexible payment methods should be available (paying as a one-off or on a retainer). It would be even better if they could provide you with a free trial, such as working on a smaller project.
Even if they aren’t known as the money creator, HR must give a return on investment. Higher productivity, lower turnover, and fewer absences aren’t usually monetary benefits. Inquire about your HR provider’s objectives and the timeframe for achieving them.
It’s much more important for them to understand your company’s culture. They may make poor decisions on your behalf if they don’t. They hire the wrong individuals, leading to many long-term problems. A free trial option is advantageous once again.
7 of the best human resources consulting firms in the UK
Do you wish to outsource your human resources but don’t know where to begin? We’ve put up a list of the best HR consulting firms in the UK.
It’s OK to conclude that you need to outsource your HR, but how do you find the right firm?
When so many companies sell nearly identical products, deciding which one to buy might be tough.
We researched seven of the best HR consulting businesses in the UK and outlined their key characteristics to assist you in making an informed decision.
Finally, ask your preferred supplier for two or three expert references. Once you’ve decided to collaborate, be explicit about what your agreement covers and how it might be tweaked later to match your company’s needs.
6 small business HR software applications
You might not want to outsource your HR and instead prefer to manage it yourself using online HR tools.
HR software products have grown as more companies embrace a hybrid or remote working style.
HR software can also help improve productivity, provide working insights, and provide employees with additional benefits.
An HR tool, also referred to as HR management software can relate to a complete platform or a particular component, such as recruitment or absence management software.
Every small business has its own set of requirements. The following are some of the best HR software products and descriptions of key features and integrations that you can utilize with your present system.
HR can help your small business.
For any small business, HR begins when you hire your first employee. It is entirely up to you whether or not to include your legal obligations in an employment contract or create a staff handbook.
You may assume that outsourcing your HR to an outside supplier rather than hiring a full-time HR director is the most cost-effective alternative as your company grows.
You may also use a hybrid approach and do most of the HR paperwork for your small business yourself while using HR software to assist you.
In any event, consider human resources as a tool, not a burden, for establishing your small business’s mission and as one of the pillars that execute your strategy alongside finance and marketing.