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Why do small businesses need a focus on HR?

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Small business CEOs may doubt whether it is a necessity or mere luxury to show more attention to human resources. However it is disastrous for a small business not to hire right kind of people and attract too much attrition. This often takes critical intellectual property, enormous hours of orientation, training and opportunities.

  • Employees First: The success of any small business relies on its employees. People are the key success differentiators for these businesses. If employees are carefully selected, nurtured and maintained, they will take care of the customers and make sure of business continuity.
  • Synchronize it: A great CEO can synchronize the effort of people, cash flow, targets, expansion and keep the business running, profitably. If we deploy non-efficient people, who do not put enough efforts, this synchronization will fail and a small business CEO can not afford this. So, once again, human resources play a vital role.
  • The Compass: A small business needs HR Office as it acts like a compass. Apart from your sales figures, if there is one variable, which would tell where are you heading, it is your HR Information. To a great extent, a small business will assess its growth through its ability to sustain people for a longer time and to build a great career for them.
  • Policies: When you seed a new business, it is quite unusual to put all policies in place. While expanding, written rules are mission critical as this can enable consistency to a large extent. For example, a written employee Leave Policy, when circulated among employees, can help cut unnecessary queries, policy violations, unplanned leaves etc. HR Office can put in to practice the policies in a better way.
  • Time is money: You want your employees to put their honest and best efforts, right? Self discipline is great but we can not expect this all on a sudden. On top of this managers can keep a good track of productivity. Standard practices will evolve over a period. HR Office can watch the progress and help the organization to get along with a good work culture.
  • Last not the least: How long you print paper forms, generate memos, cut the check and scrutinize spreadsheets? This is too tedious and it consumes precious time of key stakeholders.

The problem is even more acute in smaller organizations, where the CEO to discuss HR aspects. Employees are different from other lifeless assets of a business. They are highly sensitive and intelligent. From selection till separation, small business does not have the comfort of trial and error when dealing with HR. A well-balanced people practice that suits the real requirements of a small business shall cut down overhead costs, infuse and open channels for quick, pro-active and effective decision-making. It is beneficial to automate people processes wherever necessary.

Now you can get help from applications like greytHR which can help you to manage employee data, compute payroll and enable statutory compliance. It also enables organizations to deliver accurate employee services like Leave, Attendance, Claims, etc., in a quick and cost-effective way.

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