Businesses have been in trend as a source of livelihood for a long time now. It is an easy way to multiply your earnings instead of just adding by taking up different jobs. Many individuals prefer to have a small startup right after high school instead of pursuing a university degree. The inclination towards this idea has resulted in many platforms springing up to help you set up a business. However, like with most other things, it is necessary to learn how to run a business professionally.Most businesses should start in the right way and start generating good profits, which will be a great encouragement to consider expanding the setup. The bigger problems start becoming prominent once the business is in this phase. Even though it is a small setup, managing a crowd, dividing workload, accommodation, keeping track of resources, handling inventory, the performance of employees, revenue figures, and a lot more gets factored into this equation. This sudden surge of workload in a flourishing setup required people to come up with a solution. Hence, the department of human resources became important for any setup to maintain its progression.
Many people are still unaware of the need for an HR department in a business setup. It is mainly because a lot of concerns lie under the umbrella of HR, which ensures a smooth workflow and enhanced productivity in any environment. The following might help you get a better idea as to how an HR department operates and can turn your small business into a well-established corporation.
HR, the Backbone of a Business Setup
In a business setup, there are a lot of areas that require care and attention to harvest better results. Many problems that are dealt with by HR can be categorized to make it easier to understand. The major areas are communication, workplace environment, and resource management. The HR department works on all these areas to maximize productivity and generate results that meet the employer’s expectations.
Communication is very important for any small setup to excel. Employees in the workplace often have many complaints that can be related to anything. Also, employee concerns regarding the workplace environment or malicious nature of certain individuals are nothing to be taken lightly.
Similarly, during project presentations, employee feedback can prove to be helpful as it may cut down on the expenditure of your resources. Besides this, employees find this to be a great source of motivation when they know that their complaints and contributions aren’t falling onto deaf ears.
Since communication is a two-way street, it also helps employers know their employees better. Not every employee works best in the same environment and with the same attitude. Some employees are more used to being pushed to produce better results, while others need flexibility with their work.
Also, it can help to be appreciative of your employees’ performance and support their innovative ideas, instead of suppressing them. This way, employees feel more comfortable while bringing new ideas to the table. It promotes an interactive environment that is likely to maximize productivity and work efficiency. All of this is only possible by conducting employee surveys and going through performance reports.
All these tasks fall under the umbrella of the human resource department of a company. It helps strengthen the bond between the employer and the employee and bridge the gaps that might result from physical absences. Hence, making a strong statement about the need for an HR department.
The next most crucial aspect of the business setup is to have a pleasant and comfortable workplace environment for employees. There is a concept of the glass ceiling at most workplaces that discriminate against working women, and you might even have individuals working that might bully them or make their life miserable. Such an environment can never result in obtaining productive results.
Besides this, many researchers have studied and reached conclusive evidence that there are a lot of factors that might directly affect the productivity and efficiency of employees. These include the arrangement of lights, noise levels, and cafeteria environments, and meal plans. Making these minor changes can result in substantial improvement in work and might even help your business get expected results.
However, all of this is only possible if you have people monitoring your workspace and can advise you on making these changes. That’s where the HR department steps in. It looks upon the areas that might be limiting your growth and suggests making changes accordingly. Also, since they are with the staff, they can easily verify the reported complaints.
After all, you only make as much as you are willing to invest. Many businesses find it hard to keep track of their investments, and might even continue them if they aren’t managing their business. It might result in bringing more losses to the setup than good. You may be investing in a marketing plan that is bearing no fruits, have employees that were expected to produce results but aren’t performing, and your technology and equipment are obsolete. All these issues are not too hard to spring up when you are in a working environment.
Fortunately, the HR department is there to save the day, or in this case, make efficient use of your resources for you. A plan proposed by the HR department of a company is more reliable than the one that you can ask an external entity to prepare for you. Since it has analyzed the company more closely, it can present a plan that specifically targets areas that can use some improvements.
Also, it can advise you on which employees should get an appraisal and incentives based on their work performance, which might get them to keep up. Besides, it is best to sustain your setup before being obsessed with expanding it.
In a nutshell, an HR department can maximize the efficiency of your business setup and make sure that the workflow is smooth even when experiencing expansion. It allows employees to feel connected with the company and satisfy them by catering to their needs. Similarly, it makes the life of higher management a lot easier by acting as a data filter. Hence, saving some serious time and effort to do it yourself.
Absence of an HR Department, a Catastrophe
Despite the many advantages of it, if you don’t wish to hire an HR department, then it isn’t impossible. However, there are things that you need to be transparently aware of and willing to handle to take this course of action. There is no sugar coating that the repercussions of this might not only affect your business but also affect your personal life.
To start considering the idea of expanding, you need to have a large enough group to work for you. Many hiring applications and individuals show up for interviews that might be driven by need, even if they are not suitable for the job. Likewise, many hired employees might only be a result of a bad judgment call, and that employee may not be up for the task. Similarly, some employees have been producing great results and deserve a more substantial form of appreciation than a pat on the back. It will also be delayed or go unnoticed if you don’t have individuals pinpoint it out.
Unfortunately, you will have to take care of all this manually, as you won’t be having the HR department to filter out data, prepare performance reports, and shortlist candidates for you.
In the same way, having an HR department makes the workflow smoother because of the constant physical presence. Employees can share concerns, ideas of improvement, and might even get a breather by talking with them. Compared to that, it is slightly more difficult to directly make complaints and report concerns to a person in a position of authority. It can result in employees bearing with the problem, instead of reporting it, which can make things worse. Also, since you’re casually available, be prepared to listen to false appreciations from your employees to get into your good books. But you can choose to disregard it, but only as long as you can notice it.
Besides all this, you need to manage your workspace environment, make sure that the staff is satisfied with the equipment, keep the inventory updated, and manage your resources. With so much on your plate to handle, you can always find yourself preoccupied, and without having a social life. It may marginalize your growth and affect the productivity that you were hoping to offer while being closely related. Hence, pushing you to the point of a mental breakdown.
Therefore, it may be possible to manage a business without an HR department, but factoring in all the workload makes it look almost impossible. It reinstates the idea that it is better to have an HR department than tackling all this workload instead.
Technology and HR
Fortunately, the significance of an HR department has pushed developers to come up with solutions that might help overcome obstacles related to this work area. The recent breakthrough has been with the human resource management (HRM) software, which integrates an array of functions and applications to your system, making it easier to manage your workplace. You can keep track of performances, business progression, plan future projects, review revenue graphs, administer staff benefits, and propose career development plans. All this will be managed on a single platform, making it more convenient to operate. The streamlining structure that HRM software offers to a business setup is unparalleled, and might even significantly reduce the size of the workforce that you would need otherwise.
Besides HRM, some software deals with taxes and custom related issues, which might help avoid a lot of SAC related lawsuits. These lawsuits often are enough to drive small businesses to bankruptcy. Some firms offer these services; however, having software manage it is more convenient, effective, and would save some substantial investments in the long run. Similarly, some software helps with the management of your resources and point out areas that might require an investment. For instance, Enterprise Resource Planning (ERP) software aids with efficient use of your resources. Making it easier to extrapolate results and derive conclusions that might help you sustain your current business standing.
Many people look favorably upon establishing a business without much consideration, and most even find their way to success without having a right direction. However, the vital roles of an HR department can’t be neglected and help strengthen the foundation of your business setup by ensuring productivity and efficiency. There are many solutions that it can offer to produce results that, combined with what technology has to offer, may just be the perfect recipe to turn a small business into an enterprise.