Sage Canada's Managing Director outlines the significance of human resources management for small businesses.
With the rise of the gig economy and the growth of startups and entrepreneurship globally, small businesses are starting to have a greater impact on the business world. In 2016, there were a reported 1.17 million small businesses in Canada contributing to the economy.
As a small business owner, you probably have a lengthy to-do list and are used to wearing many hats. Managing people and human resources operations probably aren’t on your list. Many small business owners often put human resources tasks on the back burner after hiring the right talent because business operations are running smoothly as usual.
However, doing so is putting your business and employees at risk for legal and compliance issues. Human resources management is just one of the important things you do not want to leave off your to-do list. Human resources is much more than hiring the right talent; it involves people management, payroll, performance reviews, salary increases, benefits, employee relations, internal communications, strategic planning and HR compliance.
As a small business owner, growing your business is your top priority, but in order to rise to the top, you need to stay up to date on the latest HR trends, make sure you are staying compliant with legislation, and work on improving people management skills.
People Management: Managing your best asset; your employees
Most small businesses and startups are switching to cloud-based people management and human resources solutions because it allows them to access employee data while on the go. Having a 360-view into your workforce is a lifesaver for small business owners who are juggling multiple hats. Being able to analyze data about your employees will not only help you gain better visibility into your company, but it will help you when planning for the future by streamlining your existing processes.
Planning for the future requires thinking ahead about your prospective talent pool and keeping your hiring team informed. A people management solution will allow you to sync your hiring plans and manage applicant details. This will also help simplify your onboarding process.
Companies that provide a great onboarding and recruitment experience have higher employee rates. Being able to create a great first impression with automated workflows will help you communicate more efficiently with your key internal and external stakeholders by providing them with updated information about a potential hire.
Hiring the right talent is important, but avoiding any legal trouble is too. One of the top issues facing small business owners and HR leaders is making sure they are staying compliant with HR legislation. HR compliance is of particular importance if you are managing a small employee base. Overlooking one small issue could cost your company many problems in the long run. Educating yourself or your HR Manager on local legislation will not only make you an expert in HR, but also prevent your business from having to shell out a lot of money for legal help. With the right software solution, you will be able to keep track of all data entry points and stay informed with when any new HR compliance laws are updated in your area.
We often hear stories from small business owners who are having trouble managing their people and staying compliant. With the right software solution and systems in place, small business owners will be able to hire the right talent, stay on top of the latest HR trends, and grow their business.