Managing HR resources in a start-up is one of the most misunderstood concepts when you are setting a new business up and running. In addition, some people think that an HR department is not really necessary for their business. That is to say, businesses that properly manage human resources save a lot of money and frustration in the long run since they care about employment laws.
In this article, you will learn everything regarding the best ways to manage human resources and the benefits you obtain from them. In the same vein, even the smallest companies must invest in HR. Likewise, the HR department makes everything better in a business from hiring employees to maximizing workers’ productivity and protecting the organization from any issues. Let’s observe:
- What is Human Resource?
- Why do you need an HR department for your start-up?
- What is the role of HR in business growth?
- How can ConnectHR provide you with the best HR solutions in the UAE?
1. What is Human Resource?
Basically, human resources refer to a person or group of individuals that work or contribute their skills and time to a company, organization, or business. That is to say, it involves all the individuals that encompass a business’ workforce. Similarly, “human resources” is the business term for anyone working for an organization.
In addition, with the ongoing growth of the gig economy, more and more individuals find it suitable to work as freelancers or independent contractors. Likewise, these are the people that work for a business or an individual on a contractual basis and without the traditional labor contract that regular workers acquire.
2. Why do you need an HR department for your start-up?
SMBs and startups rely on flexible business practices, they need to fail fast and pivot. Similarly, recruiting practices and structured HR are not the first areas they prioritize because they see them as hideous “corporate”, culture-killers threatening flexibility and innovation. Consequently, developing great recruiting processes and HR practices normally takes a backseat.
But when they are not taken care of, recruiting processes and unstructured HR will cause more harm than good. Further, it can promote a toxic work environment, negatively impact employee retention and morale, and cause confusion.
However, businesses that develop strong HR practices show that they greatly value their workers. Thus, these businesses are better at:
- Hiring employees.
- Developing employees.
- And retaining them.
As we established earlier, human resource’s main task is focused to contribute to your business’ growth. In other words, they are the most directly responsible for the potential growth of your business. That is to say, having an HR department allows you to properly manage this talent; it smooths all the workers in a way that the productivity of the organization drives the profit graph exponentially.
Similarly, it is so important to invest in these areas and everyone starting a business must know why it is so important to set up an HR department. However, here is a list that will allow you to understand why you must invest in an HR department.
2.1 Create Resilience in the work environment
For several reasons, in the next decade, the socio-economic environment will be more dynamic than ever. And since the worldwide financial situation is changing; only the businesses that are proficient at such changes can sustain in the long run. Further, having no defined structure leads these new-age businesses weak and will make them erratic.
Therefore, having great HR policies allows you to mitigate operational risks, and the startup must manage human resources and develop their processes.
2.2 Attract Better Talent
Sourcing the brightest individuals is a crucial business requirement for all start-ups. In addition, it is the important workers that determine the growth of any company or start-up. Likewise, the owners want people to work with similar passion to dream and turn them into reality. In the same vein, attracting highly-skilled individuals and developing effective staff through direct processes encourages a culture of innovation.
2.3 Retention of Talent
However, these highly-skilled individuals will stay when they see they are being treated fairly. In addition, the HR department in startups must create HR prognostications for less risky business; and to allow the workforce to promote quality performance.
2.4 Compliant to Industry laws
There is no need to name the practical reasons why it is crucial to comply with the different labor and employment laws of the UAE. That is to say, there are several established laws that define the regulations and rules in each industry with worker-related situations. Similarly, it is important to comply with these regulations to protect your business against future problems.
with these laws to safeguard against any future dispute.
2.5 Organization design and development
You must establish who will report to whom and what size of team you require. Thus, establishing a basic organizational structure allows you with important decision making and prioritizing the type of work correctly.
Above all, you cannot skip the importance of properly managing your workers. That is to say, the prevailing culture in all organizations is a representation of its values. In addition, you must design a correct and solid strategy that will shape the character of your business.
On the other hand, some businesses think that organizational structures are irrelevant. Further, they divide the business’ workers. So, if you want to direct the business towards a no organizational culture, you must talk openly with all your workers about why you need to change and how everyone must operate from now on.
3. What is the role of HR in business growth?
HR professionals are in the best position to shape the way companies operate. Similarly, since individuals who work in marketing, middle management, and operations tend to look at the company through the lens of profits; they tend to lose sight of the core values of the company. Similarly, HR strategies are the cornerstone of successful businesses.
Similarly, decades of research show that strong HR management policies will lead to higher growth rates. In the same vein, here are 7 ways in that your HR strategy will contribute to the success of your business:
3.1 Hire the right workers
With a great team working with you, you can achieve so much. In addition, you are able to tackle several tasks in a short space of time because you know the work you assigned will complete the work. Similarly, the work will be of the quality you expect.
In the same vein, it is important to develop a good system that allows you to source and hire the best candidates for the position. Likewise, an effective recruitment process will allow you to identify the best personnel. On the other hand, a review process is a good way to ensure you the workers you hired perform and have a procedure to deal with staff failing to hit their target.
Likewise, this process takes time and you will experience trouble. However, in ConnectHR we allow you to hire the brightest workers in the UAE with our innovative processes.
3.2 Build a strong work culture and promote it
Organizational culture is a vast set of expectations, values, and practices that shows how your team is working together. On the other hand, this culture directly impacts the environment that your workforce encounters when they are at the workplace. Similarly, this culture also directly impacts how people perceive your business and the type of workers you will attract.
For instance, determine what you want to stand out as a business and how you want your worker to treat each other. Therefore, if you are able to create a good organizational culture, you will have ease finding and attracting the brightest workers; and you will reduce employee turnover.
That is to say, the HR department allows you to implement organizational culture, ensuring people know what it means to work for your company. In addition, the HR department should promote and reward worker behavior that reflects the wanted culture.
3.3 Training new talent
The recruitment process does not end when the candidate signs the contract. Therefore, in order to formally welcome your new employee; your HR department must create a worker onboarding process that will equip them with the organizational skills they need to properly do their jobs.
Similarly, one element of the onboarding process covers the business and the culture. Thus, all workers, regardless of their job position; must learn about the business and the organizational culture you want to create.
That is to say, the earlier you install the values of transparency, collaboration, and improvement to your workers, the better.
Apart from general onboarding, every worker must learn the proper processes and skills specific to their position. In addition, if you are looking to hire multiple workers for the same position, you must systemize staff training. Further, you can create established guidelines with the information the workers will need, and assign people to supervise new workers, etc.
Having such a process in place will reduce the amount of time newly hired workers spend learning and speed up the time it takes for them to meet their expected potential.
3.4 Participate in growth planning
When your business is growing, you must hire new workers. And you need to train them to do new activities, or if you want to expand into the new market. Moreover, it does not matter the strategy, growth planning, and the success to execute your plan is crucial to your company.
In addition, your HR department plays an important role in growth planning. That is to say, when you manage human resources, you must take care of the positions you want to fill. In addition, your HR team provides valuable insight into how your expanding team is operating and what issues are likely to arise.
3.5 Minimize employee turnover
Training, finding, and hiring workers is a crucial expense for all organizations. Similarly, the cost of finding a good replacement is directly proportional to the difficulty of the position and the number of potential candidates available.
On the other hand, a study by the Society for HR Management established that a worker’s replacement cost is equal to 6 months of wages.
3.6 Take feedback from employees
If you want to take care of your employee wellness, it is crucial to ask for feedback. In the same vein, it is one of the most important data sets that you must gather about how your business operates and the culture you want to build. Your HR team is connected to everyone in your organization; thus, they are in the best position to solicit worker feedback and analyze the data.
3.7 Employee growth & performance management
This is one of the most important aspects when you manage human resources is worker growth and performance management.
Similarly, a good system is crucial to monitoring employee development, and part of how you monitor an employee’s growth is tracking their performance and measuring it against certain key performance indicators.
4. How can ConnectHR provide you with the best HR solutions in the UAE?
We understand that in order for your company to successfully expand, you must have the right management systems and tools. This is why in Connect HR we are fully committed to assisting your business in this area. On the other hand, when you work with us you acquire several benefits, and we will take care of your business in the next areas:
- Attendance.
- Insurances.
- HR management.
- WPS – Payroll.
Similarly, we have more than 2 decades of experience working shoulder-to-shoulder with businesses across all sectors of the UAE.
Would you like to contact ConnectHR to obtain more information about the best ways to manage human resources in a start-up company?
You can call us on +971 433 16 688, and you will talk to one of our representatives who will answer all your questions.
Payroll – WPS