Mention the words human resources, payroll, or benefits administration to most of the small business owners we meet, and you’ll see their shoulders tense right away. Most SMB owners or leaders we meet feel completely overwhelmed with HR management.
- Constant questions hang over their head about whether or not they’re in compliance with ever-changing laws and regulations.
- There’s never enough time to do the work of HR administration on top of their other duties.
- Worse yet, there are constantly new things they need to learn how to do, and it always takes twice as long to figure it out as they want it to.
While all of these things tend to be true, (And in a moment, we’ll return to these points and offer a solution.) SMBs are often so mired in HR that it is hard for them to see the incredible advantages they have over larger businesses or corporations.
Believe it or not, when it comes to managing HR and building a positive workplace culture, your small business has the edge. Below, we’ll explain why and also show you a path that opens up the time you need to take advantage of these opportunities.
Small Business HR Advantage #1: Implementing or Adapting to Change
It might not feel this way when you’re in the middle of the day-to-day, but your company is far more nimble than larger companies when it comes to making a change.
You likely proved this point during the pandemic. Although it likely felt chaotic and rushed at the time, many small businesses were able to make major changes, like converting to remote work or adapting to changing health and safety regulations because they were smaller and more agile. Whatever pressure you felt during this time, imagine how much the pressure – and complexity – was magnified by companies with hundreds or even thousands of employees.
It is simply easier for you to implement substantial, powerful changes when your company is small. You can pursue a strategic plan that involves real, rapid transformation in things like . . .
- Adjusting employee compensation
- Enhancing your total rewards packages and benefits
- Creating flexibility for team members to find work-life balance with hybrid work weeks or creative scheduling
- Implementing new technology and productivity tools
- Planning training events and opportunities
You are also in an easier position to simply listen to your team and understand what they need to feel cared for and successful. As you or your managers engage with employees in one-on-ones, team meetings, town halls, and other venues, the insights you gain are more immediate, and the transfer of information is more direct. Simply put, it is easier to get the pulse of how your team is doing and respond to what you learn when working at a smaller scale.
Small Business HR Advantage #2: Building a Positive Workplace Culture
This might seem like an obvious point, but you’d be surprised how often it is overlooked. Building a sense of family and team in a smaller company is easier.
This begins with the advantage we listed above. It’s easier to listen and stay on the pulse of how well your employees feel equipped and cared for in their work.
It’s easier, but it still takes intentionality. A little discipline goes a long way, and if you are consistent in seeking feedback from team members and communicating with them about your vision for both company and culture, you will see the benefits.
It is also easier to do the simple things that build community, such as planning events and freeing space in the work week for people to connect in meaningful ways. It’s easier for employees to feel appreciated and known rather than get lost in the crowd.
It takes a plan. It takes discipline. But the work you do to build culture in an SMB leaves a much bigger impact and is felt at a deeper, more authentic level than the large scale, programmatic approach large businesses are forced to take.
Small Business HR Advantage #3: Attracting and Retaining Great Talent
Not everyone is looking to add a big company’s name to their resume. In fact, the people most likely to make the biggest impact on your team will value other things.
- Career growth
- Making an impact
- Feeling like part of the team
As a small business, you can offer a customized path to growth that larger companies often can’t or won’t guarantee. Even if there aren’t obvious pathways for promotion within your organization, you can offer a development plan with the chance to learn new skills and gain experience that furthers an employee’s career.
You can invite talent into an environment where their work’s impact will be felt more immediately and meaningfully, whether by receiving the gratitude of teammates or through their relationships with customers and clients.
And as we mentioned above, you can also invite talent into a positive workplace culture, into an experience where they feel valued and heard from day to day.
All of these things add up to two very important things . . .
- You become a workplace with a great reputation where team members happily recommend you as a place to do meaningful work and grow.
- You become a workplace where employees stick around. All of us have had enough bad workplace experiences to know a good thing when we see it.
The Key to Unlocking The Advantages SMB’s Have in HR
At this point, you’re likely thinking, “This all sounds great, but remember those points we started with? I am already busy, overwhelmed, and confused about HR best practices to begin with.”
So, you need a bigger team.
And on that team, you need HR experts, people who know how to do things like implement changes, build culture, and retain talent.
And it is possible to do this as a small business.
HR consulting firms give you the opportunity to outsource the burden of HR and gain open access to expert guidance without needing to hire more employees.
Whether you outsource everything or wrap support around the person managing HR on your team, HR consulting firms like Xenium create customized solutions that relieve the stress of HR.
- They ease the burden of day-to-day administration.
- And in the case of Xenium, they provide access to a team of more than 80 HR, payroll, and benefits experts to answer questions about compliance and provide strategic guidance.
With the burden lifted, you can then turn your attention to building a great workplace culture and implementing strategies that make your team feel cared for and heard. Your consulting team members become allies and guides who wrap support around your business and make sure you succeed.
And in Xenium’s case, your representative doesn’t just dole out advice from a remote Zoom room in some far-off land. They visit on-site. They get to know you and your people. They understand your company and culture on a personal level.
Learn more about our custom HR support services at XeniumHR.com or schedule a call with one of our experts here.
With a little help from a qualified HR consulting service, it’s possible to take full advantage of the strengths you have as an SMB and use them to grow your business.