Human resource planning is not very common for small businesses to prioritize. You’ll need to create HR plans, policies, and processes that meet short-term requirements and budgets but also take into account your long-term goals. This can be overwhelming for a new business owner who is also trying to navigate the daily operations of their organization.
Small businesses rarely have dedicated HR staff. Because of this, the duties often fall to someone who may not have experience in the various aspects of human resources such as hiring, payroll, benefits, employee relations, etc.
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The following items generally fall under human resource planning and should be considered with any size company:
1. Organization Structure
Who reports to whom within the organization? If the company becomes large enough, how will teams or departments be structured?
You don’t need to have a formal, comprehensive organizational chart when you open the doors. However, you should have a simple document showing the structure of your organization. This will help with decisions on workforce planning and, if needed, outsourcing.
2. Recruiting & Hiring
How will you describe open positions within your company? How do you plan on attracting (and developing) top-caliber talent?
While you may not be hiring many employees at first, it is still important to know how and where to advertise your open positions. You just also consider your interview process and how you will train your new employees.
As you open your small business, you should have offer letters, payroll data, and employment verification forms, as well as any employment agreements that might be relevant such as a non-solicit agreement or non-compete agreement. By preparing these documents beforehand, you will create a positive impression on new hires and eliminate stressors during the hiring process.
3. Compensation & Benefits
What is the proper compensation for each position? How do you decide what benefits to offer your employees? Who will handle Open Enrollment each year?
Once you’ve hired an employee, hopefully, you will want them to stay. If so, a competitive rewards program is important. Determining a general salary structure, what payroll system you’ll be using, paid time off, insurance benefits, and 401k are all important to your employees.
4. Training & Performance Management
If you want employees to stay with the company, training and development are key. Are the employees growing and developing in their respective roles?
It is important to commit to launching a plan for employee development and training so employees can continue to grow in their positions and with the company. By the completion of your first year in business, you should have a performance management process in place. This will allow you to review employee performance and possibly provide a pay increase where appropriate
Don’t let the fact that you are a small business fool you into thinking that you don’t need to worry about human resources. Planning these important aspects of your organization during the early stages will allow you to focus on the growth of your business during the formative years.
LUXA Enterprises specializes in HR services, outsource accounting, bookkeeping, and payroll services. We match up with ideal candidates for services by allowing small to midsize businesses to increase focus on their growth through outsourcing. If you want to know how we can help you, contact us today!
REQUEST ONLINE PRESENTATION
We’ll demonstrate how you can save money while improving your efficiency and accuracy when you outsource your back office services to TEAM LUXA.
Let Us Present A Plan →
Call TEAM LUXA today at (918) 928-7288 to learn more about why outsourcing is right for you!