| If people are your most important resource, then you | | | | the majority of your staff retiring in the next year; or |
| need to understand the role of human resources in | | | | why you have high turn-over rates; or what type of |
| your small business. Many small business owners | | | | aptitude and skill is required in each position; etc. Gather |
| believe that because they have only a few employees | | | | the data, then analyze the data you have gathered. |
| they do not need to focus on human resources issues. | | | | What are the issues your business faces in terms of |
| The reality is that when you are a small business | | | | attracting new employees, in terms of retaining those |
| owner, you need to focus more attention and support | | | | employees, and in terms of developing those |
| to your human resources because, effectively, they | | | | employees' skills and aptitude? For example, in |
| can make or break your business. | | | | Western Canada it has been difficult to find |
| Even from a mathematical perspective this is true. If a | | | | employees to work in the manufacturing industries as |
| small business has only 4 employees, each of those | | | | most of the potential workforce has gone to work |
| employees has at least a 20% impact on the business | | | | either in high paying oil and gas jobs in Northern Alberta |
| (the small business owner is counted in this impact | | | | or to work in the construction jobs for the 2010 |
| assessment). If a business has 19 employees, each of | | | | Olympics. How would your business handle attracting |
| those employees has a 5% impact on the business; | | | | new employees in face of competing industries for a |
| and so on. Therefore the impact of a bad hiring | | | | small labor pool? |
| decision or an under-performing employee is significant | | | | Step #2: Create a training and development plan - this |
| to small businesses. | | | | would detail how you plan to develop the staff you |
| Every business employs resources to get work done; | | | | have to be more efficient and productive and to be |
| typically the resources are a mix of people and | | | | capable of doing more than one functional responsibility |
| equipment. Equipment resources are typically | | | | (this is particularly important in small businesses where |
| measured for value (that is, cost and return on | | | | employees need to be capable of working in a number |
| investment or payback on investment). Human | | | | of areas). |
| resources are often not valued similarly but if they | | | | Step #3: Create a performance effectiveness |
| were, business owners would pay a lot more attention | | | | program - this would involve developing a specific |
| to making sure they hired the right people, trained them | | | | performance evaluation or review program for |
| well and measured their performance effectiveness | | | | employees in your business. You might consider |
| regularly. | | | | working with employees to create the program. You |
| Let's consider how you can better manage your | | | | want to ensure that the program involves the |
| human resources: | | | | employee: a self appraisal section, as well as a section |
| Step #1: Create a workforce plan - this would detail | | | | for the owner or manager to complete. |
| the number of staff your business needs to operate | | | | Managing your people may be the most challenging |
| effectively. | | | | part of being a business owner. It is not easy to predict |
| Analyze the characteristics of your current workforce: | | | | how people will react to changes in the business or to |
| job descriptions; individual skills profiles: make sure to | | | | your directions or to customer interaction. As a small |
| include skills that cross-over to other functional areas | | | | business owner it is your primary responsibility to |
| (e.g. a shipper/receiver might also be capable of doing | | | | develop excellent employees. It is very likely that your |
| the purchasing and/or handling the inventory in your | | | | employees will have contact with your customers; you |
| business); experience; training or education; | | | | want to have employees who understand how to |
| demographics of your staff - age, time or duration with | | | | provide customers with good service, who are well |
| the business; aptitude required for each position; | | | | trained and knowledgeable, and who are reliable and |
| turn-over rates; and more. | | | | experienced. With excellent employees, you can |
| You want to know if you need to be concerned about | | | | develop an excellent and successful business. |