Human Resources for New Businesses

No matter the size of an organisation, it’s important for all business to ensure human resources are considered and any necessary steps are taken and policies put in place.

Human resources (HR) is used within organisations to maximise employee performance to help achieve company goals and is primarily concerned with managing the people working within an organisation in line with the organisation’s policies and to ultimately reduce organisational risk.

Some small businesses and startups choose to ignore some of the basic principles of human resources so we have put together this short guide outlining key HR considerations for new businesses.

Recruiting employees

The mistake that many new businesses make is thinking that they don’t have to follow various employment laws that are in place to protect both employees and employers. When recruiting you must ensure that formal employee contracts are in place defining the role and the terms and conditions of the persons employment. It’s recommended to seek professional advice for this to ensure that all necessary procedures are being followed.

Ensure that sufficient training and induction to the firm is given to all new employees. Whilst small businesses may put this off due to a lack of resources and time available, it’s important that employees feel adequately prepared for their role and are aware of the policies and procedures in place within the firm.

Employee retention

By implementing informative staff appraisals, regular target setting, employee benefits and other such schemes, employee retention is likely to increase. Retaining employees significantly reduces recruitment costs for the company and reduces organisational risk.

Dealing with employee issues

Dealing with issues such as disciplinary actions, firing, managing employee sickness or complaints can be an awkward thing for small businesses to deal with, especially due to the nature of working in a small team. Seeking HR support can help businesses to deal with issues without having to have awkward internal conversations.

Ensuring policies are in place

It’s important for businesses to have staff handbooks, job descriptions and policies and procedures in place and then regularly reviewed and updated when necessary to ensure that all information is up to date.

When running a business it’s important that human resources is considered and effectively implemented. Seeking professional advice regarding human resource can help to protect both you and your employees and reduce risk to your organisation. To find out about the specialist HR advice available from South Wales Connect, get in touch today.