Worth-trying: Killer HR Tips for Small Business

Worth-trying: Killer HR Tips for Small Business

Whether you lead a big company with 100.000 people or an SME with small team members, with no good team plus effective HR tips for small business, the chances of success will always be thin.

Leading a small company may be challenging but worth striving for. As you know, 400 million SMEs are the backbone of the global economy, according to National Action Plans on Business and Human Rights. Further, according to the World Bank, SMEs create the latest jobs and account for 99% of all businesses.

Yet, the challenge is that sometimes people have work-related problems, but the business is too small to employ a Human Resources (HR) team. But with the right HR tips for small business, you can effectively manage human capital issues.

Why Do SMEs Need HR Management?

Close to 52% of small business owners find it difficult to find employees. Also, another 23% of them are going broke because they don’t have the right team. As a result, nearly 19% of SMEs fall because they are out-competed. The function of Human Resources, as we know, is to resolve any issues covered above.

Typically, a business without formal HR services relies on its management teams to set work standards, handle hiring, and assure ethical behavior. But if management loses control and no human resources department can do anything about it, the business may suffer.

Typically, a business without formal HR services relies on its management teams to set work standards, handle hiring, and assure ethical behavior. But if management loses control and can’t do anything about it, they can suffer.

In this case, an HR strategic consultant can support building a competitive learning environment that improves the quality of your team’s outcomes. They are responsible for resolving issues, directing people management, and supporting the sustainable growth of the business through the employees. At its core, HR management functions include:

  • Recruitment: Find, attract, engage and attract new talent.
  • Training and development: helping to train and develop employees.
  • Employee experience: building the foundation for an environment where employees can thrive, grow and develop.
  • Retention strategies: take strategic steps to retain employees.
  • Compliance: making sure an organization aligns with employment laws.

Guidance for Effective HR Management

As owners who run a small business, we may have no resources to set up a dedicated HR department, and some challenges may arise, but here are a couple of tips we can still do:

Create a Policy and Procedures Directory

By writing policies and procedures, you can create a consistent HR strategy. It should cover all aspects of your business, from accountancy and administration to recruitment and compensation.

Define KPIs for Company and Employees

HR management function holds setting objectives and measuring the company and employee progress. Key Performance Indicators will be role-driven and easy to monitor. Setting benchmarks will help us measure improvements and performance declines and take steps to address the problems.

Perform performance reviews

Talking about performance with our people is a key step toward effective human resources management. Performance review means having an open conversation about successes, challenges, and ideas for improvement. Your staff can bring up all the issues that impact their performance, and we can give them a solution.

In fact, 60% of employees seek daily or weekly feedback, as PwC reported. Moreover, Gallup states that employees who received feedback had 14.9% less turnover than those who did not.

Provide Training and Upskilling Program

As we go through performance appraisals, we can develop training plans. It aims to enable employees to work more efficiently and, at the same time, improve their professional development.

Research shows that offering growth opportunities can boost employee retention. According to LinkedIn’s Workforce Learning Report 2019, 94% of employees say they would stay in a business longer if they invested in their career development.

Deploy an HR software solution.

HR software can help your business better and easier handle HR management. It gives tools to manage human resources functions, such as performance reviews.

Outsource for the HR Services

It is more than just multinationals (MNEs) who can afford HR services. With the growing demands of outsourcing and the need to save costs, HR outsourcing has become more affordable to small businesses. You can save time on this process by utilizing an HR service as Klique provides.


Like most SME leaders, we usually manage all business activities, including all HR duties. But often, SMEs consider HR to be a bottleneck. However, we still have an opportunity to expand by implementing the HR tips for small business above.