Your business and its people
Every aspect of your business involves people. The success of your company not only rides on sales, but by how well you manage the relationship with your people. Without these people, the business will fail. So if all businesses involve the management of people from the start, and Human Resources is the management of people, why are small businesses ignoring this critical function early on?
HR is regularly misunderstood!
Small business executives are shocked to learn that Human Resources is really part of many, if not all, aspects of the business. It is one function that gets weaved in throughout the organization without managers knowing. Sounds sneaky? Not really. Again, it goes back to that misunderstanding of HR.
When asked the question, “What is HR?” many people say HR is recruiting and/or payroll. While these are Human Resource Management functions, there is a lot more to it than that! Human Resources Management is everything your company does to manage its people and it begins before the first hire.
Where does HR begin?
Human Resources begins within the organizational planning phase. Yes, early on in the planning process before the first few sales are even made! Organizational planning allows the company to be structured in such a way that makes sense for the business and its people. It helps determine the duties each role will have, where on the organizational chart they will lie, and how the relationships will work together to be productive. It also defines the company culture and the policies and procedures that must be followed.
For a small business trying to perfect the product and gain customers as soon as possible, these things may not be on the minds of management. This is common. Unfortunately, many businesses rarely utilize an HR expert early on in the planning process.
Benefits of utilizing HR early on
Introducing HR early on is a huge win for a small business whose success relies on a small number of people. Any turnover, changes, and mistakes can break the bank so early on.
Businesses that seek HR assistance early on will reduce the chances of quickly restructuring their business, filling the wrong roles with the wrong people, and wasting time and money on poor performers. An HR expert will also go beyond the hiring process and implement policies and procedures that will allow employees to develop and succeed within the environment. Most importantly, it will keep the employees accountable for their actions.