8 Powerful HR Tips for Small Business & HR Professionals


Productive and efficient employees are the most vital assets of every business, regardless of how small it is. But in order to manage them efficiently and minimize HR issues, businesses need effective HR policies in place because HR plays a decisive role in helping businesses grow.

Below are 8 HR tips, every small business owner should integrate into overall business operations for long-term success.

8 HR Tips for Business Owners and HR Managers

8 HR Tips for Small Business Owners

1. Invest in HR Tech to Keep a Finger on the Pulse of Recruitment Performance

The most crucial component of creating a positive candidate experience that translates into an engaged, productive workforce is integrating the right recruitment software into the workflow. The key here is to ensure that the HR tech stack strikes a perfect balance between catering to recruiter needs while fulfilling business requirements.

There are several recruitment software solutions that are mutually beneficial to both the employer and the employees. They not only enable recruiters to streamline and speedup their workflow but also ensure a hassle-free application process for potential employees.

2. Be Consistent and Clear with Your Communication

Clear and consistent communication plays a crucial role in the success of any business and of course it has a flipside – Poor communication can prove to be disastrous.

According to a recent survey conducted by a leadership development and training company Fierce, Inc. more than 86% respondents blamed ineffective communication for company failures.

SMEs have a distinct advantage in this case due to a lean hierarchical structure that makes communication fast and easy. But it is important to have a standardized communication process in place to ensure everyone stays on the same page.

When employees are updated on the company goals and receive feedback from time to time, the possibility of delays, discrepancies and miscommunication is greatly reduced.

3. Keep the Employee Handbook Updated and Invest in Training

The policy manual is the last thing that people think of until the operations come to grinding halt. To avoid such situations while the business is still steadily progressing, it is important that business owners proactively review the employee manual to ensure it is compliant with the best industry practices and current laws.

It is also essential that new hires receive the right job training during their orientation so they get up to speed right from the start. By investing time, effort and resources in employee training, companies can create a workplace that is safe, compliant and productive.

4. Implement an Effective Appraisal System

An effective appraisal system empowers a small business to set and achieve challenging business goals. When a small business owner initiates periodic reviews that aim to establish realistic goals and provide actionable insights on training needs, it further enhances employee performance.

While there are several appraising tools and techniques available for evaluating employee performance it is also important that supervisors are trained to accurately appraise employees while avoiding rate errors.

Also, HR managers should not wait until the year end to review employee performance because this can lead to dissatisfaction and increase the attrition rate. Quarterly appraisals that provide constructive feedback will not only help employees improve but also bring about a visible change gradually.

5. Pay Your Employees on Time

Everyone loves working for a company that pays on time and so, business owners must have an efficient payroll system in place. There’s no surer way of implementing a straightforward solution than using good payroll software.

If you don’t want to lose talented employees to untimely paychecks, then you need to ensure that both your paperwork and your payroll system are up-to-date at all times.

6. Set Up a Comprehensive Onboarding Process

No small business is too small to roll out a formal onboarding procedure. The fact is streamlined onboarding not only helps the new hire get acquainted with new people and processes but also impacts performance and retention.

Establishing a comprehensive onboarding process helps new hires navigate through challenges at work and thrive in their new role. So it is important to make sure your new onboarding process clearly communicates a clear vision of every position, conveys your cultural norms, and clarifies your expectations regarding performance and productivity. All the better if you have a talent acquisition software that can eliminate your paperwork and keep things organized!

7. Fire When You Have To

A small business needs a top performing team to survive and succeed in a fiercely competitive business landscape. So, your workplace will not be for everyone and letting someone go is the right thing to do for them, for the team’s morale and for your business.

Employees who fail to deliver even after mentoring, motivating and providing opportunities to improve will not be able to add any value even with additional efforts. So, go ahead, do the compassionate thing and fire employees who are under performing by all means.

8. Implement a Culture of Constant Learning and Development

Research studies have confirmed that motivated and engaged employees are self-driven to get things done and this makes them the most valuable asset for any business.

Small business owners establish this motivation by creating a workplace that offers flexibility, growth, recognition, financial rewards and performance-based incentives. These small programs eventually work to cultivate a competitive yet conducive environment where employees are excited to come to work and perform.

All businesses big and small need human resources to run their operations successfully and realize their full potential. That is why investing in tools and technology that empowers HR professionals to implement all of the above-mentioned policies only makes sense.

Author Bio: Kelly Barcelos is a progressive digital marketing manager specializing in HR and is responsible for leading Jobsoid content and social media team. When Kelly is not building campaigns, she is busy creating content and preparing PR topics. She started with Jobsoid as a social media strategist and eventually took over the entire digital marketing team with her innovative approach and technical expertise.