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HR @ Small & Medium Enterprises
(SME/SMB)
By GR Reddy – Founder & Chief Facilitator
Husys
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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
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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
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• 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
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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
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Importance of HR Function
People are only the DIFFERENTIATORS for BusinessToday
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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
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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
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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
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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
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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)
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HR Tips for SME’s
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Tips - Organizational Design
• Create Simple Job Responsibilities
• Create Reporting Relationships in Organisation
• Create simple Job Responsibilities as people join and map to Reporting Structure
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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
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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.
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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)
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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
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About
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Your
HR
Department
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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”
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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
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Husys
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