HR for Small & Medium Businesses (SME / SMB)

Husys Consulting Pvt Ltd, © copyrights Reserved

HR @ Small & Medium Enterprises

(SME/SMB)

By GR Reddy – Founder & Chief Facilitator

Husys

Husys Consulting Pvt Ltd, © copyrights ReservedYour HR Partner in Business http://www.husys.net/reachus.htm

What Inputs you can Expect

• Typical HR Challenges @ SME’s

• Why Focus on HR

• Key HR @ SME is the CEO

• Building Business Effectiveness (3P’s Model)

• HR Focus @ SME

• Top 7 Characteristics of HR @ Small & Medium Business

• Steps in HR Setup @ SME

• Role of HR @ SME

• HR Tips for SME’s

• Introduction to Husys

http://www.husys.net/reachus.htm


A Typical SME Challenges for People

• Centralized Decision Making

• Every Employee access & personal touch with Management

• High dependency on Existing Resources

• Instant & Infectious Communication (Perception)

• Can’t Sustain Low Performance / High Loyalty based approach

• HR Activities by :

– CEO/Owner

– Spouse/Relative

– Admin/Finance

• Challenges of First Generation and Gen-Y Combinations

• Dynamic and instant Feedback

• Anything spent on Non-Revenue Base is Waste



• Bring Professionalism in the Organisation

• Attract Professionals and Retain

• Support for Entrepreneur/Owner in building People

Organisation

• Support & Advise Business Managers

• Business Focused HR Strategies

• Reduce Operating Costs

• Technology Implementation for Productivity

• Building Internal Leadership for Business Support

• Attract, Retain and Grow Talent

Why HR Focus



Key Human Resource is CEO @ SME

Key success Factors for CEO @ SME’s

– Getting The Senior Team Right

– Find Failure Fast

– Align the brands of CEO,Sr.Team & Company

– Communicate

* By Marjan Bolmeijer : Business Editor : 1000 CEO’s Proven strategies for success from the world’s smartest executives



Importance of HR Function

People are only the DIFFERENTIATORS for BusinessToday



Building Business Effectiveness (3P’s Model)

• Clear Process

• Resources with Multitasking

• Planning for uncertainty

• Reducing customer dependency on single resource

• Statutory Laws in time

• Leverage Programmed Technology

• Other people development activities

SME

Business

Effectiveness

© 3P’s is a Copyrighted model by Husys for SME Business Effectiveness



HR Focus @ SME’s

1. Employee Data Management & Agreements

2. Employee Related Statutory Compliances based on the Growth & Applicability

3. Organizational Design with Clear Role and Responsibilities

4. Manpower Planning, Attracting & Selecting the Best Talent

5. Setting the Expectations Right First Time

6. Internal Policy Guidelines for Engagement of Teams

7. On-Time Performance Reviews and Creating Career Progression(easier @ SME for faster growth)

8. Building Cost Effective Training & Development Programs

9. Managing Exits

10. Build & Sustain Quality Business through People


Husys Consulting Pvt Ltd, © copyrights ReservedYour HR Partner in Business

HR @ SME

Top 7 Characteristics of HR @Small & Medium

Business

Organisation

Design

Recruitment

Employee Relations Learning &

Development

Performance

Management

HR

Planning

HR Information

* This is Part of © HRFM service is copyrighted by Husys Consulting Pvt Ltd


Basic Steps in HR @ SME

• Establish Basic Employee Data

• Give Organizational Inputs to Employees on Joining

• List basic Job Responsibilities

• Assign Job and Measure at a Frequency

• List Basic Policies & Provide Guidelines

• Identify the Needs for Improvement of Performance & Execute

• Create appreciation for Good work

• Build Competencies for Future Growth



Role of HR @ SME

Attracting & Retaining Profitable Employees

• Hiring through Incubation & Just-In-Time Acquisition

• Employee Management through Long-Term Ownership

• Building HR Support System to sustain the Growth

• Need based and Dynamic Employee Engagement Methods

• Personalized Incentive/Reward Mechanism

• Challenging Work Environment with Multiplicity of Role

• KPI / KRA’s to IRA( Individual Revenue Addition) or IPI (Individual Performance Value Addition)

• High Growth Oriented Career Plans

• Hands-on (On-Job) Competency Enhancement

• Timely Process Based Approach (Based on Size & Growth)



HR Tips for SME’s


Tips - Organizational Design

• Create Simple Job Responsibilities

• Create Reporting Relationships in Organisation

• Create simple Job Responsibilities as people join and map to Reporting Structure



Tips - Hiring

• Identify Sources of Cost Effective Recruitment

– College Networks & Use their Infrastructure to Research/Backoffice

– Govt. funded/NGO networks focus on livelihood/employment generation schemes

– Pool the JobSite Cost with other SME’s

• Interact with Various Colleges, Networking Groups to Create a Brand



Tips - Employee Guidelines

• List some of the Key issues related to employees taking away time.

• Create 8-10 guidelines for each of the Issue (Eg.: Travel, Conveyance etc.,)

• Make a Note that the final authority is Management for any interpretation/deviation from guidelines.

• Spend few minutes with Staff joining organisation. Explain the expectations and also organisational outlook.



Tips on Performance Measurement

• Create Simple Job Responsibilities

• Create Reporting Relationships in Organisation

• Create simple Job Responsibilities as people join and map to Reporting Structure

• Set the Deliverables for each person

• Monitor and Review at Regular Intervals

• Reward the best performance (Based on Expected Vs. Actual)



Tips on Training

• Identify the key resources who has expertise

• Create orientation sessions with other members with Experts

• Identify Networking opportunities for Sr.Management related to business

– Various external Trainings

– External Seminars

– Industry Association Events

– Let the Sr.Manaement Share their experiences in Groups

• Create a task force (Give them right Tools & Empowerment) for on the job improvements



About

Husys


Your

HR

Department


Our Vision“Synergizing Human

Potential for Business &

Society”

Our Mission “To be the leader in deploying & delivering high quality,

innovative, profitable and time sensitive business

Services, leveraging human potential for the advancement of both

business and society”



Since 2002

150 Organisations

15 Industries

26 Yrs Avg Age

9 Indian Locations

4 Business Incubations

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100000 hrs of HRFO Experience

+140000 hrs of HR Expertise

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HR for Small & Medium Businesses (SME / SMB)

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