For small business, HR can seem a scary prospect. You’re likely to get the basics sorted, but when you’ve got limited time and money to deal with aspects such as recruitment, onboarding and setting up payroll, it may seem easier to let them fall by the wayside.
However, a clear and streamlined HR system is an essential part of any successful business. Not only does it help you to adhere to employment laws (and avoid any potential tribunal claims), but it will ensure your employees feel valued and cared for, helping to improve retention, output and overall company performance.
We’ve compiled a list of five basic HR processes that are the cornerstones of a healthy HR system:
1. Recruitment
For your business to grow in a sustainable way, you need to hire a strong team of ambitious, capable and talented employees. Having a supportive team around you who want to help make the business the best it can be is crucial for boosting performance and creating a great company culture.
2. Onboarding
Now that you’ve hired the perfect candidate that will help you to grow your business, you need to equip them with the training and support required to allow them to excel in their role. The onboarding process can take up to 12 months but is invaluable for building a strong team of proficient workers.
Issue an employment contract and try to make it as clear as possible, and make sure you choose the right type of contract depending on the employment status of the individual: permanent employment, or fixed-term employment.
Spreading the onboarding tasks along a timeline of the first day, first week, first month and first year will stop the new employee from feeling overwhelmed by everything that needs to be done.
Not only will effective training boost overall performance and output, but a great onboarding experience will help new hires to feel valued. This will improve retention rates, therefore saving on the time and costs required to recruit somebody new.
3. Employee handbook
This is a comprehensive document containing everything a new employee needs to know about your business. This includes the legal policies and procedures they need to follow as well as an insight into the company culture. An informative employee handbook will communicate the values of your organisation clearly and effectively.
Make the handbook easily accessible and have everyone sign an acknowledgment form to confirm they’ve read it all. This way, you’ll be protected if something goes wrong (for example, an unfair dismissal claim is brought against you), as you’ll be able to prove you made employees aware of your policies from the start of their employment.
4. Payroll
This is likely to be the biggest expenditure for your company, but payroll is an essential part of any well-run business.
Getting to grips with the processes can be tricky, especially for small businesses who may not have a specific department to deal with it. However, a good payroll system will help to keep employee morale high, which in turn will contribute to a boost in performance and overall output.
5. Appraisals
It’s vital to keep track of how your employees are performing so that you can use the feedback to make any necessary changes to your business. Having regular performance reviews to discuss achievements and objectives will help to improve staff morale while also helping the company to operate in a more efficient way.
Clear and open communication between yourself and your employees makes it easier to spot any wider issues, which can then be dealt with quickly to improve the overall running of the business.
If you would like to find out more about Ward Williams HR, and how we can assist in the above key areas. Please don’t hesitate to get in touch 01932 830 664 or email sally.phillips@wardwilliams.co.uk