When Is It Time to Develop a Human Resources Plan for Your Company?

Human Resources is a fundamental building block for small businesses but often goes unnoticed when expanding a company. Long term, a poor HR plan can cost a company a significant amount of money in both opportunity cost and legal consequences. As your company grows, it can be difficult to know when to invest in a designated HR professional.

If your designated HR professional (which maybe you) is spending more time managing HR activities than building revenue in the company, it is likely time to develop an HR plan to better linearize your goals. It is also important to continuously develop, implement and assess your current HR plan and make modifications as the goals of your company change.

A small business consisting of one to ten individuals can dedicate one part-time individual to human resource management. Typically, in a business this size, employees understand their role in the company and can communicate easily on issues. As a business owner, it is your responsibility to work with your dedicated individual to draft a proper HR plan and familiarize them with company goals. A few topics this individual should be familiar with include employee retention, proper documentation and filing, hiring, orientations, complaints and workplace assessments. There is no cut and dry employee or company size that indicates when it is best to outsource or internalize your HR, but below are some questions you can ask yourself to determine if it is time to put more attention into Human Resource Management.

1. Are you confident in your understanding of the legislation that protects employees and your company?
Mistakes in this department can result in lawsuits and human right board complaints that could devastate a small business. If you are not confident in the legislation in your province, it might be time to develop a proper plan to respond to complaints and conflicts.

2. Have you constructed an HR plan for Health and Safety incidents, Company Policies and Procedures?
This includes creating a proper Health and Safety culture in your company, employee manuals, outlines and steps to follow for reporting Health and Safety incidents in the workplace.

3. Are you expecting to expand significantly in the next year?
Having a dedicated plan for hiring, firing, employee retention, employee filing and documentation can consume a large amount of time for a small business owner. If you think you will be hiring a lot of people in the upcoming year, it may be time to dedicate a professional to this task. It might sound simple to write a job description for positions you are hiring for, however, losing employees and hiring the wrong fit can cost a company thousands.

4. Are you happy with employee performance and do you feel confident in the work your employees have done?
Human Resource Management is not only about legislation and proper documentation. It is also about ensuring your employees are on the same mission as you and helping to grow your company.

5. Do your employees understand the core values and mission of your company and work with you to execute company goals?
It pays to have employees that want to help build up your small business. Hiring the right employees is important but keeping your employees happy will ensure long term growth of your company.

If you have found that you have answered NO or are unsure of these questions, then it is likely time to focus on the development of a HR plan. Delaying these needs could be critical for revenue and business growth. It is best to begin your business with a structured HR plan so you can easily and efficiently manage all aspects that were previously discussed in this article.

Haddow Young Business Consulting specializes in organizing and implementing a proper HR protocol for small businesses by developing templates for proper job postings, creating employee manuals, and developing protocols for disciplinary action, termination and hiring procedures. If you are struggling with employee retention, management, writing your human rights plan, then it may be time to consult with a specialist.