HR Best Practices for SMEs and Startups

facebook
twitter
linked in
whataspp
link
By greytHR
2 minute read ● October 28, 2020
HR Best Practices for SMEs and Startups

Checklist of HR basics for small businesses that will create a happier work environment

When setting up a small business, it is essential to craft an HR strategy that keeps the team happy and motivated. Particularly in the initial stages, there is often a lot of daily stress and the role of HR in a startup company gets overlooked in favor of product development and business strategy. Here, we provide a checklist of HR basics for small businesses that will create a happier work environment and improve overall team productivity.

HR laws may change at any time, and several important alterations are likely to occur in the aftermath of COVID. It is crucial that small businesses are fully in compliance with employment laws, tax laws, and any other relevant legislation at all times. By migrating to a cloud-based HR management software, the team can get automatic updates on alterations to the law and thus stay abreast without extra effort.

Efficient payroll and benefits

Paying employees in a timely fashion is one of the prerequisites to earning their respect. With a payroll management system in place, salaries get disbursed on time in an error-free manner, and relevant data can be referred to whenever needed. Another important aspect in this regard is employee benefits. To put it simply, a benefits package should not be one-size-fits-all. By understanding your employees better, you can create packages tailored to their needs and preferences. For instance, those with young children or elderly family members to look after at home might prefer more paid time off as a benefit, while this may not be the case for those living on their own. The package should also include affordable health insurance and generous provident fund plans.

Fair leave policies

One of the HR basics for small businesses is allowing adequate leave to its team members, including weekends, national/cultural holidays, and flexible hours. Employees should also have the flexibility to request their own leave through an online portal rather than approaching multiple people with emails. Incorporating an Employee Self Service portal will be of immense help here.

Smart performance management

HR should prioritise having a clear performance pathway for their employees with mutually agreed-upon goals and regular feedback on how well they are doing. There should also be a system of recognition for the star performers. This is an ideal tactic to increase employee morale and engagement. It is also a good way to identify the team members who need to improve in certain areas — allowing the HR department to plan relevant training programs.

Employee Self Service

Giving employees autonomy over their own documents and daily affairs shows them that the organization trusts them, and also makes operations more convenient. By incorporating an HR management system with an Employee Self Service portal, HR can give employees full control over their personal details and admin-related tasks, such as updating their address proof or entering their attendance. While this ensures optimized operations, it also has another essential benefit — enabling ease of communication by allowing teams to reach out to HR directly for any queries.

In short, there are several HR basics for small businesses that need to be kept in mind by the executive team to create the best possible work environment. Having the right technology in place can be a great help with this.

Drop by the greytHR website, and pick from several HR automation solutions that can take your SME’s operations up a notch.

Key takeaway:

The role of HR in a startup company is a crucial one — to keep employees motivated and loyal through the challenges of setting up a new business. Having a small business HR compliance checklist handy can help with setting up robust HR practices.

Related Posts

Info Tile Image
14/02/2024 | greytHR

Stepping into the Future: Our Journey to a New Brand Identity

greytHR helps streamline HR processes, empower employees, and improve all-around productivity. Read our journey to a new brand identity.
HR
greytalk

Subscribe to our newsletter

Stay on top of latest updates from greytHR on HR trends, statutory compliances updates and more.
  • Product
  • HR Software
  • Payroll Software
  • Leave Management System
  • Attendance Management System
  • Employee Self Service
  • greytHR Service Status
greytHR-logo
GDPR Compliant certification badge
Soc2 certification badge
ISO Certification Badge
© 2024 Greytip Software Pvt. Ltd.
Privacy PolicyTerms of Use
India