A few years ago, you were probably sitting at your kitchen table or were in the midst of tinkering in your garage when you had that light bulb moment to start your own business. You gathered your resources, put in place a plan and began on a new chapter to being an entrepreneur.
Since then, you’ve done exceedingly well. Your business in now into the established phase, having survived the growth stage of the business cycle. From just you and probably your partner/spouse at the seed and startup phase, you look around now and see that you have close to 10 people now employed in your business. So far, you have managed the hiring and firing all on your own and have had no significant workplace issues. So far.
It is not uncommon for startups to have the owner/director double up as the human resource officer. But once employee numbers head into the double digits, the degree of difficulty in managing the operational requirements of the business in addition to human resource management can start to overwhelm you. Then there are the legislative and regulatory aspects of employee management that you also need to get your head around.
Human resource management (HRM) is much more than meeting the administrative requirements of engaging or terminating workers. HRM is taking care of those things that engage and develop your employees so that they add value to your business. In a nutshell, HRM covers the following:
- Transactional services – these include payroll, maintaining essential HR information systems and other essential employee services;
- Traditional services – includes recruitment and selection, staff training and development and performance management; and
- Transformational services – includes change management, organisational culture, leadership and organisational development.
So where in your business are you with respect to your HRM? Do you feel that you still do not need incorporate a dedicated human resource component into your organisation?
According to Rahul Garg, CEO and founder of Moglix, India’s largest online store for industrial and home products – you do. Need a HR team that is.
“You always need a HR team in place. The team can be divided into people operations and people development. As soon as a startup crosses 10-15 people team, they would need to make sure that the people operations is followed. People development on the other hand, since it happens on a monthly or quarterly basis should be a part of the key result areas of the leadership and senior management team directly,” he notes.
Please contact Lauren Morrison at Lauren@lmhr.com.au or Mob: 0400 225 499 if you would like to learn more about how LM HR Consulting can assist your business with your HRM requirements.
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