Why small businesses need HR

Date: Friday, 18th May, 2018

Interestingly small businesses make up more than 99% of private sector business and account for 60% of private sector employment: there are a lot of small businesses out there! Unfortunately another statistic is that the basic lack of correct management skills is responsible for the failure of over half of them.

Budgets are tight when small businesses start out, therefore a lot of managers are expected to multitask which means dealing with employee issues as well as growing the business. With focus on rapid growth, this results in the need for investment in an HR function being overlooked, which can actually have the opposite effect and halt growth in its tracks. Without the training required or the skills that HR brings, decision makers are not often able to identify and use the talent within their business to be able to push it forward in the right way.

Interestingly small businesses make up more than 99% of private sector business and account for 60% of private sector employment

In most cases, and we see this a lot, small businesses only approach us once the problems have already started or when a major change happens in employment legislation. It seems that the mindset of small businesses is that the HR function is a reactive one, when in reality it should be part of the strategic planning they need from the outset.

Our Managing Director, Wendy Read comments:  “People are the key to a successful business, without them the wheels just do not turn. The problem is that most businesses don’t focus on their people and only concentrate on the bottom line. Our philosophy is simple; focus on your people, hire, on-board, train, manage and develop them and the bottom line will look after itself”.

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