The most beloved and loved companies in the world invest in HR solutions and HR technology because of its immense benefits. After all, employees as a company’s greatest asset.
Especially in the MSME sector where employees are the harbingers of growth, HR solutions take priority.
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Current HR trends for MSMEs
According to a Stratefix Survey Report, more than 90% of MSMEs in India do not believe that HR functions are needed. 67% also believe HR is only responsible for hiring.
Here are some other interesting facts that came to light through this survey:
- Only 33% of businesses want to set up an HR department
- 34% of the respondents believed HRs primary role was to increase employee efficiency
- For 15%, HR only had 2 roles – Resolving employee grievances and handling benefits
- In as much as 20% of the cases, business owners did not have clarity on the exact role of HR.
- A whopping 71% of business owners believed that HRs are more concerned about employees and not the company
This is fundamentally proven wrong based on multiple case studies. Let us make our case:
Why do MSMEs need human resource management
Recruitment
Securing the top talent for your company can bring amplified profits to your company. An effective human resources team would know how to hire effectively.
Especially in niche categories, asking the right questions is key to understanding if they are a good fit. The hiring process needs to be strategic so that the candidate is chosen based on industry-specialised expertise.
We’ll circle back to hiring effectively a bit later in this blog.
Employee retention
You hired great talent. Now what? Are they enjoying working? Are they growing? Are they contributing to the growth of the company?
A lot of times small businesses don’t understand the reasons behind their turnovers. For every employee that leaves, you’ll have to spend 33% of that position’s salary on recruiting a replacement.
Good HR solutions help leaders identify problems and help them resolve it. Hrs are responsible for posting employee engagement, their performances, and team building. They help encourage real-time feedback and ensure a safe space for growth.
A good HR department will allow the employees to flourish and come to work with their best selves every single day.
Bridging the gap between leadership and employees
The best performance by employees is also dependent on how invested they feel in the organisational goals. Unless the brand vision resonates with an employee, there are chances that they won’t put in their best efforts.
It’s up to HR to regularly check in with these employees to understand how they are currently feeling about their engagement with the leadership and the company. HR is the bridge between the demands that the employees make and the leadership’s response.
Employer brand
Human resources management also refers to building an image of how an employee feels within a company. The incentives, pay cycles, performance reviews, diversity and inclusion policies, benefits, increments, etc all determine how strong an employer brand is.
The stronger the employer brand, the better their chances of hiring top talent. A strong brand performs well on KPIs like retention rate, position duration, dismissal rate etc.
Building a strong employer brand is a priority for more than 75% of the top employers in the world! Without a dedicated HR team in place, achieving this is often difficult.
Recruiting your company’s greatest assets
Employees are probably even more important than customers to a business. Without capable and competent employees that believe in the company vision, company goals will not be met.
This is why hiring is a crucial task and can determine the bottom line of the company.
Small and medium businesses may have smaller teams to manage. But since each employee has a larger share of ownership in the company’s growth, hiring appropriately is a challenge.
Recruiting top talent needs energy, time and finances. On average, it takes a business 23 days to find the right candidate for a job. However, the best ones? They are usually off the market within 10 days.
To ensure that only the best choice to stick with you, they have to feel satisfied in the entire process from setting up an appointment to the interview process, the offer along with the period of onboarding. All of these would have an impact on whether the candidate finally does decide to join your company.
Remember, one bad hire can cost you up to Rs 20 lakhs.
Let us help you retain the best possible employee for your business.
Free course: Hire effectively to build a rockstar team
Introduction to mojoversity
New to online courses? mojoVersity, India’s first-of-its-kind, a digital learning platform for MSMEs gives you all the skills you need for your entrepreneurial journey. We carefully partner with brands that can help small businesses upgrade the way they do business easily and effortlessly.
All courses are crafted by specialised industry experts. All you need to do is:
- Sign up with an email
- Enroll in any course for FREE
- Log in any time you want from any device to watch the videos
- Take a quiz at the end of the course
- Download your verified certificate on course completion
We did promise you the best resources to get the best team. Want to know how to hire employees that end up becoming your company’s greatest assets? Enrol in this course for FREE.
What will you learn?
- Hiring basics and common recruiting mistakes to avoid
- How employer branding is a smart business investment
- A good hiring platform benefits. More than what you could count on one hand. Maybe even both.
- Employee pre-boarding VS onboarding
- How to set up systems for tracking hiring metrics and outcomes through performance reviews.
This course is brought to you by Springworks, a fully distributed HR technology startup that is building tools and products to simplify recruiting and help organizations engage and retain their employees.
