Business Growth: Why the HR Department is a CEO’s Secret Weapon
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Unless you’re running a one-person operation, you will quickly learn as a CEO that the management of people is essential to how well everything in your company runs. From the supply of refreshments to managing fire safety and employee onboarding, the HR department is responsible for a lot that is good in our organisations.
But did you know that human resources are also essential for growth and can make your company at least 10% more time efficient? Discover how to use your HR department as a secret weapon to create growth in your company.
When do you need an HR department?
If you are the owner of a small business you may not feel as though creating an HR department is worth it but once you have at least 10-15 employees, this becomes a full-time job looking after all of their interests, from budgeting to performance management.
Rather than plateauing once you reach a certain size, and losing valuable leadership time to people management, creating an HR department allows you to stay focused on your unique business skills.
Here are some of the key areas where HR can lighten the load:
Staff recruitment
Induction, training and development of staff
Performance monitoring and maintenance
End-of-employment duties
Ensuring compliance with governmental and regulatory legislation
Disciplinary procedures
Staff recruitment and retention
One of the biggest assets a company can invest in is its employees, which is why it’s so important to get the recruitment process right for long-term success and growth. Not only is hiring and training staff an expensive endeavour but having to replace a poor recruit with another is costly.
Furthermore, you don’t want good staff leaving, perhaps to join your competition, strengthening them while also weakening you and inflicting further costs of replacement.
HR is perfectly placed to help you nail the hiring process, finding the perfect candidates that will not only bring the necessary skills to your company but also help drive you forward with new ideas, a strong work ethic and ambition.
This is where your human resources department can provide invaluable service, from thinning the herd of applicants, which is time-consuming, to conducting screening interviews to find those perfect candidates who will bring growth and success to your company.
Benefits, socials and staff incentives
Work is more than just a job for lots of people these days, with perks, benefits and remote working high up on the list of requirements. While you might not have the time or headspace to brainstorm all of the finer details yourself, your HR department can get to work defining which social events, staff benefits and working patterns are achievable with your budget.
From exploring share option schemes or health cover, to paid time off and gym memberships, creating staff incentives through your HR department is a great way to push for growth through productivity, retain staff and recruit smarter.
Complying with regulations
The larger your company gets, the more difficult it becomes to stay in control of each and every detail, particularly when it comes to legislation and regulations. Think of it like a garden, with some flowers needing special attention, and others an occasional watering while weeds are threatening to run rampant if they aren’t dealt with.
You could try and handle all of this yourself but once more this is a time-consuming job that frequently requires specialist knowledge, something an HR department is perfectly equipped to help with. Doing it yourself you not only spend time making sure everything is right, but you will also have to spend a considerable period becoming familiar with what those rules and laws are.
Using human resources to ensure you correctly implement regulatory compliance reduces risk, increases efficiency and enhances your brand reputation – this will put a more robust framework in place which results in safe and effective practices.
Employee compensation
To remain competitive, companies should regularly review the compensation levels they provide to staff. Providing regular pay rises, for example, in line with inflation, is a great way to keep your best people as they know their services are valued.
Furthermore, a dedicated HR department can review what is a competitive salary and ensure that staff are offered this at their next pay review. HR can also track and manage a staff member’s performance, supporting managers, to help determine whether they have met their KPIs.
Training for professional growth
Companies that continually allow their staff to grow and add new skills to their repertoire can reap the rewards twice. Firstly, they are creating a better-skilled and well-rounded workforce that is more capable of reacting to new problems with agility and creativity.
Secondly, a working environment that accommodates career progression allows staff to work towards their personal goals while enhancing the skills available to you. But as a CEO, you don’t really have the time to create training plans for each member of your workforce, let alone arrange and complete skill development sessions on an individual basis.
Your HR department can arrange for training sessions, seminars and workshops and ensure that employees have access to resources, databases and software that allows for further progression. Allowing your HR department to be heavily involved in staff training allows your company to create an environment where employees are willing to stay for the long haul, growing as you do.
Open communication
How engaged your staff are is hugely important for company growth but when you are busy running your business it can be hard to dedicate time to ask how each staff member is doing or what their input is for particular problems. However, there needs to be open, two-way communication within a company not just so that staff feel valued and part of the team but because it allows them to bring their solutions to the fore.
We all have different skills and points of view and sometimes a member of your team, perhaps who does a particular role, has a great idea for how to make their job more efficient. Your HR team can help to create an environment where people are free to share their thoughts and ensure mechanisms are in place to raise them with the relevant people.
That company framework will also create a way for you to have some contact with your employees through scheduled meetings that helps to keep everyone in the loop about the bigger company picture.
This allows for everyone to be on the same page and pull in the same direction to ensure the company can succeed and go places, rather than aimlessly trying to achieve results and solve problems.
