How to Have a Good HR Strategy When You’re a Small Business
No matter the size of your business, having a strong human resources (HR) strategy is important. For smaller businesses, designing and implementing such programs and policy can seem daunting and costly. But it doesn’t have to be.
Tanya Chapman, human resources pro and owner of T Chapman Consulting & Associates says when it comes to creating a strong HR strategy, it’s all about aligning your business goals with your personnel goals.
“For example, you are really focused on increasing sales or becoming a B-Corporation or thinking about building your brand. Those are strategic business goals and then you really have to define what that means around your talent goals,” says Chapman.
“So if you’re increasing sales, you have to translate that into an HR goal that may be something like [a] focus on sales training. There might be a sales training program even for a small organization.”
Though a lot of employers would like to offer their employees further training opportunities and support, subsidizing a professional course or seminar is financially out of the question. Chapman says it’s important to look at free or more affordable alternatives.
“It doesn’t have to cost you a huge amount of money, but you need to be deliberate and intentional about what it is you’re offering based on your business goals. A lot of the time, we don’t align our business goals with our people goals and that’s really a big challenge.”
Chapman says things like free online webinars, job shadowing and rotations, a strong onboarding process and giving employees time off to volunteer are all cost-effective things that can build a strong HR strategy.
“Even the way in which you coach your employees can be considered part of training. It doesn’t have to cost thousands of dollars. It can be very much about your goals and how you’re going to drive your goals by developing your people,” she says. “It can be more intentional and more cost-effective if you think about [the] informal training and formal training that is out there but doesn’t cost a lot of money.”
Another big part of having a strong HR policy is being able to handle conflicts and issues when they arise. With small businesses, it’s not uncommon to have a bit more casual environment. Unlike big corporations, there may not be a chain of command or process to follow if an employee has an issue. Chapman says it’s up to the employer or “boss” to set the tone to how conflicts should be handled.
“I think a big thing to establish right up front is what we call a ‘respectful workplace.’ Challenge isn’t bad and conflict isn’t bad as long as it’s constructive. So the way in which you deal with conflict is really the key,” she says.
Chapman says a lot of workplace conflict and issues are caused by a miscommunication of perception and/or values. This can be easily handled with the right tools.
“Some of those tools include having strong communications skills, talking about our values, talking about how we live our values and talking about what respect means in the workplace. It means when you have conflict, make it constructive,” says Chapman. “A lot of the time the leader sets the tone and they are also responsible for managing performance and coaching. Really, it’s up to us as leaders.”
Chapman says this conversation around values and perceptions has to be an ongoing one. If for some reason a conflict can’t be resolved through constructive communication and dialogue, she says small businesses shouldn’t hesitate to seek outside help. However, it’s important to try to fix the problem that caused the issue in the first place, which often comes down to the example leadership sets.
“We don’t outsource leadership, so the leadership capability and capacity is absolutely critical in this conversation because it creates the work environment and the tone,” says Chapman.