Does HR or Human Resource only matters to large companies and corporations? If you think so, you may wish to reconsider. Start-ups and Small and Medium-Size Enterprises or SME businesses need human resource solutions too.
In recent years, the importance of human resource management has started to gain increasing recognition within corporate offices of all sizes. Human Resource is often cited as the most valuable resource of any firm. This is due to the fact that staffing issues affect all businesses big and small, ranging from small local partnerships to small and medium-size enterprises to multinational corporations.
Today, whether you are at the start-up phase or already having an established operation, the challenges faced by business owners to coordinate their various tasks can be overwhelming. In any business, there is a need to handle company registration, accounting, taxation, sales revenue, marketing, logistics as well as overseeing the day-to-day operation. Not forgetting the management of workforce, which include but not limited to, hiring, termination, performance evaluation, training and personnel development, as well as compensation and benefits.
What HR Solutions Need to Solve
The challenges faced by HR are multi-faceted and management solutions need to address the following:
- Different expectations by past, current and future workforce – current employees are looking for workplace flexibility and career development opportunities as compared to the past generations who placed more emphasis on continued employment and financial stability
- Bridging the differences between different generations and implementing strategies to retain talent and minimize the high employee turnover rates, especially among the younger workers
- Optimizing the full potential of workers by encouraging them to upgrade their skills to remain relevant in their jobs
- Identifying the knowledge and skillsets needed for the organisation to grow
- Harnessing the differentiated roles of management and employees to develop a manpower-lean organization
What HR Solutions And Analytics Can Do
HR solutions are not only about helping an organization runs effectively. It must also help add value to it, provide organizational flexibility and effectively manage expectations between the business and employees.
For example, being equipped with deep human capital knowledge about the demographics between different generations of employees, HR will be able to tailor their recruitment, retention and engagement programs systematically.
Using business analytics will also allow HR to measure the return on human capital employed. A well-designed, predictive workforce analytics will be as important to the CEO as the company’s balance sheet and its Profit & Loss (P&L) performance.
This can be done by embracing technology that will allow HR to deliver a differentiated strategy. Such technologies not only help HR eases its administrative load, they will also provide the critical data to make its processes more empirical. Such hard evidence will give HR the credibility for their recommendations at the highest levels of the business.
Such an approach is not just for multinational corporations. SMEs must also embrace new technologies that enable them to grow and compete effectively in the global economy.
A good HR management platform will help SMEs tackle productivity concerns, manpower demands, performance evaluation and employee engagement, as well as tackle the diverse multi-ethnic and cultural makeup of its workforce. According to the Hunter Group’s HR Self-Service Survey, some companies can spend up to 50% of their time handling employee-related paperwork.
Can Startups or SMEs Afford A Full-Time HR Manager?
It is possible but it would increase its overhead cost substantially. As a result, human resource management is often given lower a priority. More often than not, business owners either assume the HR responsibility themselves or simply assign it to their finance or administrative personnel to oversee it. Unfortunately, they may not have the expertise or proper training to assume that role effectively.
Hence, it is worth to consider the following:
- Would you not prefer to spend more time developing the business, scaling your capability and striving to increase revenue and profit than spending time on staffing and administrative matters?
- Does your finance or administrative personnel have the expertise, skills and knowledge to advise the company on critical HR matters as well as workforce planning?
HR Solutions Are Not One Size Fits All
HR varies depending on the size of the company and the industry it is in. The more employees a company has, the more complex its HR needs. Most large companies require an entire HR department to handle specific functions with specialized personnel.
However, for many startups and SMEs, they simply do not have the critical mass to justify the setting up of a specialized HR department. But does that mean that they cannot have a proper HR system to support their businesses?
The answer is: “Absolutely No”.
Even if you do not have a full-time HR adviser or manager to assist you on personnel and operational matters, you can still have a built-for-you system to take care of your HR needs. At Ignito Asia, our HR or Human Resource Solutions are specifically designed with you in mind as we understand your business needs and challenges. We seek to partner and help your business grow to the point where you are ready to hire a full-fledged HR specialist to handle your increasingly demanding HR needs.
Besides Human Resource or HR Solutions, we can also provide you with the following services: