HR Services1

HR Services1

Tuesday, 15 January 2013

Does Owner/Director/CEO of SMEs face Human Resource related problems when it’s time to grow?



While interacting with top management of companies especially SMEs (Small Medium Enterprises), i have realised that most of them find Human Resource related problem as one of the hurdle in the growth of their establishment. Most of them spend substantial time of their business hours on human resource related problem one or other way. It can be open important positions, incompetence of team member in performing their task, motivation level of team members, commitment towards organization, higher attrition rate, retaining top performers etc etc.
Because of their engagement in such activities top management some time not able to concentrate on core business and loose focus on it.
HR Process Outsourcing has come up as one the option available to such companies and their management. Companies can hire organizations, which are good in handling human resource related processes and can suggest company management on right policies and practices. Such organizations take up and handle end to end HR Functions and let management focus on core business.
Sometime companies do not outsource whole HR department function but outsource only a part of it. For example, company outsource payroll management, Tax management, reimbursement management, statutory compliance, attendance and leave management etc. By this way company ensure that HR Professionals working for them should focus on human resource development and not on day to day HR functions which are more like clerical jobs.
Companies especially SMEs at time of it growth afraid to consider option of human resource function outsourcing due to costing factor but trust me it worth investing. Common mistake which such companies make is to hire an HR executive with 1-2 years experience and expect that this person will establish complete HR department from scratch which is over expectation from person with such little experience. At that point of time such companies need those experts who have vast experience in field of handling Human Resource well.  
But obvious that SMEs can not afford services of such professional by taking them on monthly hence they prefer to hire such professionals as consultant. 
Outsourcing the complete HR process is another way. Interestingly cost of outsourcing is lower than handling it by itself. Also management get expert to handle their organization human resource. Management also need not worry about change in human resource team members and consequences out of it.

3 comments:

bhupi said...

As Human Resource is an integral part of any company or business. Hence in my POV(point of view) it must be strong enough for betterment of any SMEs. And if it can be resolve with some useful Human Resource Training Programs and blah blah and blah then why not....

Prajakta Patil said...
This comment has been removed by the author.
Prajakta Patil said...

Best option for managing HR activities in SME's is to use HRMS software. Various cloud based HR software's are available offering features like Payroll solutions, Time & Attendance Management Software, Employee Management System, Leave Tracking Software, etc.