People are at the heart of all businesses.
Maximising the potential of your people will go a long way to maximising the potential of your business.
For a growing business, it can be a tricky decision to invest in a progressive HR structure, and decide what the structure might look like.
So how can HR make an improvement to the bottom line?
Is it worth the investment?
One way of looking at it is this:
Engaged employees = engaged customers = creating sustainable profitable growth.
Richard Branson said: “If you look after your staff, they will look after your customers. It’s that simple.”
There is often a question mark as to how HR can add value. There is a widely held perception that HR is about reactive admin measures, and generally plays little part in moving the business forward.
So the conversation needs to about what HR interventions can make an impact on the bottom line.
The type of HR professional that can do this needs to (1) be strategically minded; (2) be transformation orientated; and (3) have the ability to deliver people strategies that change the business.
What actions would this person take? Well, here are a few pointers.
For all staff in the business:
For the leadership team of the business:
For a medium sized business, it is about taking a forward looking view of the business, and recognising that as the business grows and matures, the support needs from HR will change.
This means aligning HR strategy to business strategy, and to ensure that there is room to flex the strategy as the business changes and grows.
Many SME businesses have strong employee cohesion with a “family feel”.
However, as businesses grow, the “family feel” inevitably dissipates.
Progressive HR interventions will recognise this cultural change and introduce new structures to make people feel that their contribution is worthwhile.
This can make all the difference to company loyalty and commitment.
Does this HR leader have to be a permanent appointment?
For the smaller business, this could be a part time appointment, or an interim appointment.
It can also be a freelance HR Director who is “on call”, or spends a few days a month with the business.
However, as I said above, this HR professional has to be:
· strategically minded
· transformation orientated
· able to deliver people strategies that change the business
People are the key asset in any business.
Good HR management can make all the difference.
Bad HR practices will certainly hold the business back.
This article was co-authored by Martin Nicholson of Pro Action HR. Martin is a highly strategically orientated HR transformation expert.