Do small businesses need HR?

Managing people can be the hardest part of running a business and yet often it is left to an Office Manager or a Director to Google their way through the issues as they arise. Do small businesses need HR? In this article, we will explore the key areas and will show why we believe it is as important for a small business to have an HR Partner as it is for them to have an Accountant or IT Consultant.

Do small businesses need HR: Getting the basics right

It’s not the most interesting thing to think about but there’s no getting away from the fact that you need to provide your employees with contracts, pensions and HR policies.

Did you know that from April 2020 you have to provide written terms of employment for all staff? This used to be something you could provide within 2 months of an employee starting . However it is now a day one requirement. We also recommend that you get a number of core policies in place to ensure everyone knows what’s expected of them. Well drafted policies also give employees a good idea of how they will be treated if things go wrong. What options are open to you?

• Google some templates. You might be lucky and they could be up to date.
• Sign up with a large call centre HR service and get template policies that may not be relevant to your needs.
• Work with an HR Consultancy such as Cornerstone Resources and get tailored policies that meet your needs.

Also be aware that you need to automatically enrol your employees into a compliant pension arrangement. Failure to do so can lead to fines and can cause you real difficulties if you have an employee dispute but don’t have policies to follow.

Do small businesses need HR: Employing the right people

Finding the right employees is tricky. A quality HR Consultant will work with you to determine what you really need and will then source those candidates. They will also recommend assessment techniques that will test those essential skills and experience that you are looking for. Interviews only tell you so much about a candidate. Given it costs on average £30k to hire a professional employee and to get them fully performing in the role, it’s worth spending a bit of time to source the correct employee for your business.

So what options are open to you?

• Recruit yourself. This is the cheapest option and it may work out ok.
• Use a Recruitment Consultant.  Whilst this is an expensive option, a good recruitment consultant will get to understand your needs and will get you a good candidate.
• Use an HR Consultant who will source you a good candidate and help you build an induction plan that will set you up for success. We’ve sourced some great candidates for our customers at the fraction of a price that you would pay a recruitment consultant. Click here to find out more about our recruitment options for small businesses.

Coaching you and your managers

If you are at the point where you are hiring managers, you need to start delegating in order to get the best from them. The managers themselves may also require training. The Chartered Management Institute found that 70% of UK Managers have never been trained on how to manage. Why is that a problem? If you have promoted people because of their technical expertise, which many do, then you can’t automatically assume they will make great managers. Providing upfront coaching on how to engage and motivate teams can reap dividends in the medium term.

Changing the way you operate

As businesses grow, you will need to change the way you work. Instead of relying on manual processes, you may need to automate.

Having good systems in place will speed up those mundane administrative tasks, freeing you up to do what you do best. Through our partnership with Breathe HR, we can give you a free trial to a leading HR database that will streamline everything from holiday booking to providing downloadable data to your payroll provider.  The system is designed for small businesses and is affordable, easy to use and is being augmented all the time.

People are your greatest asset

It’s an often used phrase but people really are your greatest asset. Your product may be better than other companies but if you haven’t got the right people in the right roles, you will never realise the full potential of your business. That’s why we believe having an HR partner is so important.

Do small businesses need HR?

We think so. But HR is not just for the times when you have a problem. So if you are thinking of a 24/7 helpline, first think whether you want someone who will guide you through the process or some templates for you to work through yourself.

The great thing about partnering with an HR Consultancy such as Cornerstone Resources is that we will guide you every step of the way. We won’t just tell you what to do, we will make recommendations of what you might need to consider and will prioritise those urgent actions first.

We also won’t lock you in to a long contract like some of the bigger HR firms. You can choose to partner with us for specific projects or whether you want a longer term relationship. It’s totally up to you! So do small business owners need HR?  Well, if you employ people, then we think you do!

HR for small businesses: Getting the basics right

It’s not the most interesting thing to think about but there’s no getting away from the fact that you need to provide your employees with contracts, pensions and HR policies.

Did you know that from April 2020 you have to provide written terms of employment for all staff? Our HR for small businesses offering can help you stay compliant.

This must be provided before the employee starts and not just within 2 months of starting. So it is a good idea to get ahead of the game and if you don’t currently provide the above, let us help you clear the backlog.

Failure to do so can lead to fines and can cause you real difficulties if you have an employee dispute but don’t have policies to follow.

HR for small business: Employ the right people

Finding the right employees is tricky. A quality HR Consultant will work with you to determine what you really need and will then source those candidates. They will also recommend assessment techniques that will test those essential skills and experience that you are looking for. Interviews only tell you so much about a candidate. Given it costs on average £30k to hire a professional employee and to get them fully performing in the role, it’s worth spending a bit of time to source the correct employee for your business.

Coaching you and your managers

If you are struggling to get the best out of your team, or you need them to work in a different way, then coaching may be for you. Quality coaching can equip you and your managers to face the challenges of the future and avoid costly employment tribunals. We believe that the prevention of issues is more effective than insuring against them and for that reason, we don’t recommend tribunal insurance. 

Changing the way you operate

As businesses grow, you will need to change the way you work. Instead of relying on manual processes, you may need to automate.

Having good systems in place will speed up those mundane administrative tasks, freeing you up to do what you do best. Through our partnership with Breathe HR, we can give you a free 14 day trial to a leading HR database that will streamline everything from holiday booking to providing downloadable data to your payroll provider. 

People are your greatest asset

It’s an often used phrase but people really are your greatest asset. Your product may be better than other companies but if you haven’t got the right people in the right roles, you will never realise the full potential of your business. That’s why we believe having an HR partner is so important. 

Where do I begin?

There’s a lot to take in so we’ve created a free, no obligation resources that will help you determine where you currently are on the journey. It takes 2 minutes to complete and no data is stored with us unless you want it to. If you then decide that you want to explore further, contact us today and we will set up an initial meeting to go into more detail. 

The great thing about partnering with an HR Consultancy such as Cornerstone Resources is that we will guide you every step of the way. We won’t just tell you what to do, we will make recommendations of what you might need to consider and will prioritise those urgent actions first. 

You’ll get a dedicated HR manager who will work with you not a faceless call centre.

We also won’t lock you in to a long contract like some of the bigger HR firms. You can choose to partner with us for specific projects or whether you want a longer term relationship. It’s totally up to you! So is HR for me? Well, if you employ people, then we think it is!