Do SMEs need HR?

Most people think that human resources deals with payroll. But what you may not realise is that HR does more than payroll. The truth is, HR covers everything related to your employees, from recruiting and training to communication.

When you’re focusing on your business, it’s easy to forget about HR tasks. However, your workers are your most valuable resources, so you have to make sure they are engaged and productive.

What does Human Resources (HR) do?

• recruiting top talent

• onboarding new employees

• overseeing the performance review process

• helping employees find professional development opportunities

• overseeing employee training

• keeping the work environment safe and healthy

• handling communication between management and staff

• creating an environment where employees can succeed

• overseeing attendance and tracking hours

How HR Can Improve Your Small Business

1. Develop and Motivate

Placing someone in charge of HR helps to ensure that your company’s values and mission are shared by every employee. Once your employees are on the same page, they will be able to set goals that will move your business forward.

An HR specialist can also develop training processes and find professional development opportunities to help your workers learn new skills, thus improves your business through your skilled employees.

2. Keep Everyone on Their Tasks

In a small business, everybody has multiple tasks. An HR manager can help write job descriptions for every employee, so everyone knows what their roles are. Job descriptions can also help ensure that no one will have to step on each other’s toes by trying to do the same task.

Everyone will know and understand their responsibilities, allowing to keep your team accountable.

3. Handle Conflicts

Arguments happen everywhere, even in small businesses. Maybe your workers don’t get along, or they disagree with certain matters. Be it personal or professional, an HR manager can mediate and help those involved to reach an understanding.

This is important when an argument is between a staff member and the management, where there’s a potential for legal troubles.

4. Keep Your Business Updated with Regulations and Laws

An HR manager can keep up with changes to laws and regulations in Malaysia to make sure your business is compliant. HR managers can handle issues such as overtime and payroll deductions.

An HR manager can also keep up with the employees’ records. This includes more than just their name and contact information. You should keep these files for every employee:

• Personnel file: hiring documents, performance review information, and any separation record.

• Payroll file: salary & wage documents, time and attendance records, and payroll deductions.

• Medical file: MCs excusing absences, on-the-job accident or injury reports, and workers’ compensation benefits.

5. Address Problems Fast

Trends in your employees’ work attendance can reveal if there are underlying problems on the job or at home. Your HR manager can monitor things such as time clock and absences. They could also watch for excessive absences.

Once an issue is identified, you can quickly begin to work on the solution and return to business with a more efficient and happier team.

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Source: Why Small Businesses Need HR