Taking Advantage of HR For Small Business Success
Small businesses are typically created and run by a very hands-on person who struggled and learned about different company areas. And though this is one of the amazing traits of entrepreneurs, there comes a time when they need to hire experts to run certain things that are outside of their expertise.
HR is no different. Managing talent can be a hardship for companies that don’t have a professional that dedicates to the day-to-day necessities full time, and, though some companies prefer to outsource this area, there are many advantages to taking the reins of it, of course, with a proper HR department.
To help you get started in it, you can look into companies that offer small business loans like Camino Financial. This way, you’ll have the funds to start and maintain the department from the initial kick-off and until you can integrate it into your financial projections.
How to get started to make a business succeed?
In the beginning, you’ll have many financial needs that are not yet in your fixed or variable expenses and that you need to consider. In this way, small business loans could help you take advantage of the benefits from the Human Resources area. Think in this things to start:
- Starting salary.
- Buying equipment needed to start the operation and for the comfort of your team.
- Task management platform licenses in case you use one, or the annual payment of one if you don’t (you should).
- An initial investment of the programs this person will create, such as legal in-house audits, benefits for employees, and company-wide first steps to a better employment structure.
- The development of onboarding structures for newcomers or even senior staff.
Where should I start?
Remember that having an HR department is a process that takes time and effort, so you’ll need to be patient, take it step by step, and create some key performance indicators with the help of your new team member to establish milestones and progress plans. These are some things that you need to pay attention to:
1. Productive recruiting
The main goal of an expert in recruiting is selecting a specific talent for the correct positions. This way, you can be sure that the people performing the tasks you ask of them know how to execute them, can solve problems on the road, and have an aggregated value to the company. According to the Work Institute Retention Report, it will also help you with the retention of said talent, which turns out to be the biggest challenge of 47% of an HR team.
2. Training
Having a training program will help you have an up-to-date team and boost morale, and have a more engaged team that knows that, as long as you grow, they grow and have a career plan. This also helps to turn over and to decrease training expenses of new team members, one of the things that eat up your financial productivity.
3. Work environment
Never underestimate how the happiness of employees can impact your productivity as a company. According to a survey made by executive recruiting company Korn Ferry, 33% of employees change jobs out of boredom. That, combined with the 70% rate of people staying in a company for the friendships they created there and a policy that promotes health programs and work-life balance, can help you have a measurable return on investment.
4. Recruiting deals
An expert knows best how to make the best deal out of every recruitment. From starting salaries, bonuses, benefits, and professional programs, every effort can help you get the best talent in line with your company values and expectations beyond salary.
5. Knowledge of the law
Your expert can help you get up to date with all those elusive and new labor reforms so you don’t fall on an omission or break the law. No one will be better than them to draft and negotiate a work contract.
Now, you can see how HR is a great tool to improve productivity in your company and how valuable it can be for both your growth and your return on investment. Remember that you’ll need to have this mapped out to look for suitable small business loans that can cover all your needs. Get in touch with companies like Camino Financial to take a look at your options.
Authored by Erick Copello, Marketing Agent at Camino Financial