5 Reasons Why HR is Not Just for Big Companies

photo of a HR department

Author: Dean Hunter

Published: 23rd December 2016

Many managers and business owners are turned off by traditional HR practices because they don’t understand the importance of the strategy for business growth. If you’re launching a start-up or only have a small workforce, you may think that a HR strategy isn’t for you – but you’d be wrong.

Of course, huge companies which are world renowned for their cultures such as Apple, Facebook and Google have a lot more resources and available budget to spend on HR. These organisations will have large teams of people focused solely on employee engagement and company culture – resources that SMEs simply don’t have.

However, a large HR department isn’t necessary. Small businesses can hire a HR consultancy firm to do all the strategy planning and management training needed. If you don’t tackle HR from the start, the business will be unable to grow successfully. Here are five reasons why HR is for all organisations, not just the big players.

  1. Your people are your most important resource

Whether you have one member of staff or one thousand, your people will always be your business’ most important resource, as they directly connect with your customers. With this in mind, you need fit for purpose HR strategies and techniques to develop your employees and ensure everyone is working towards the same business goals.

  1. Staff more vital in small companies

In SMEs with a small workforce, it’s even more important that each employee delivers. If productivity drops or there is a conflict issue, it can have a bigger impact on a smaller company than a large business.

  1. Be compliant with employment law

The law is the law, once again if you have one member of staff or one thousand. There are many aspects to get to grips with, from the recruitment process to the termination of employment, and it’s important as a business you stay compliant – or you could face consequences later. You probably won’t have anyone within your small business with this expertise, so it’s best to invest in HR support.

  1. Attract and retain talent

It’s very difficult for small businesses to attract the highest level of talent, as they often can’t offer the same salaries or career paths as other companies. An HR strategy will address this problem and work to create a company culture that educated and skilled workers want to work for.

  1. Use HR to drive growth

If you’re spending too much on staff turnover or failing to engage your staff do they are productive, you’ll never be able to boost profits and grow. Modern HR strategies can be used with a primary objective of business growth, and growth is what the majority of small businesses aim for.

If you’d like to discuss our consultancy services tailored to SMEs, call us or use our online chat at https://hunteradams.co.uk/.