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Human resources can be extremely challenging for small businesses. Along with issues such as cash flow, marketing, and finding ways to generate new business, small business owners have to overcome these hurdles to enjoy consistent growth and progress. With human resources alone, what are the common issues encountered by small businesses?

Managing performance and personal development

Metrics that measure employee performance are important to streamline the growth and career development of each staff member. This can be difficult if you don’t know where to begin. You can start by consulting with your team members to find out their goals and objectives. You must then align these goals and objectives with your business so that you can create personal development plans that aim at a clear career path for each of your employees.

If there are jobs that employees are finding hard to manage, you can consider outsourcing those responsibilities through companies like Peak Support or a similar agency functional near your location. By availing extra assistance, you can manage the office more efficiently. Moreover, you can also hire additional employees specialized in handling jobs that others may find complex. By adopting such solutions, you can effectively manage all your employees performance and boost their workability.

HR roles assumed by employees with limited HR knowledge and skills

In small businesses, there is always a possibility of overlapping roles and multiple jobs performed by a single employee. While some may think this is cost-effective, there is a danger that the person doing the job is not qualified in the first place. If the business is growing, you’ll need qualified HR professionals. The best solution is to hire HR consultants with a vast range of expertise in dealing with HR processes. There are many consultant firms available in the Edinburgh area. Hunter Adams in Edinburgh is one of them.

Lack of time to deal with employee issues and implement HR policies

If your HR policies are not up to scratch, you could be dealing with potential HR issues involving employees. You will need to review policies and seek the help of experts to ensure that your company is compliant.

Providing appropriate training and retention

Continuous training should be part of the personal development of each employee. This can help them realise career goals they’ve set for themselves. The management should be able to support this and provide the necessary tools for the improvement of the staff. This can be another challenge for small companies and another concern that can be resolved with the help of HR consultants.

Recruiting employees that fit the job requirements

The hiring process can be painstaking if you don’t know what you’re doing. There are many schemes such as employee referral programs that can help you source the best people for the job. If you also want to gain access to a large network of professionals, you may want to consider outsourcing the hiring process to a recruitment consultancy firm. The time spent on scanning resumes and interviewing potential candidates can be allotted to other more important managerial tasks.

Rewarding and recognising employees for their excellent performance

Every company should be able to recognise and reward employees who are contributing to the growth of the company. HR professionals and team managers should use encouraging words that can help employees to stay motivated. Another way to do this could be by using positive performance review phrases in employee’s report along with an appraisal during their performance review. This helps boost morale and encourages the employees to stay with the company. Incentive schemes, bonuses, and other non-monetary rewards can help motivate employees to perform better.

Keeping ahead of regulations

Policies and regulations can get outdated very quickly. It is important that you remain on top of things by reviewing policies and keeping them relevant and current for the business.

Indeed, HR concerns that are not addressed in a timely and effective manner can be crippling for any business. When in-house HR does not seem to be meeting all the needs of your company, perhaps it’s about time to consider outsourcing to an HR firm instead.


Andy McGowan
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