smallbusiness.co.uk: Helping your business think big

Whether you are looking to increase staff development or need some quick-fix help, there are a range of HR solutions available.

If your enterprise has suddenly grown in size you might find that you're spending more time resolving employee-related issues than developing your business strategy. At this stage, you may need to take a closer look at your human resources policy.

Vanessa Robinson, adviser at the Chartered Institute of Personnel and Development, says when deciding to take on a dedicated HR person, managers should think about the ways in which they can meet the specific needs of their organisations.

‘It will be different for each company. For example, if moving to double your workforce, you may want to think about hiring someone to oversee training opportunities. Other companies may have different requirements.’  

However, staying on top of employment law issues is becoming a popular reason to hire, says Robinson. ‘Culturally, we have a more litigious mentality and if people think they are being treated unfairly, they may take action.
               
‘If you are used to operating in a small team, then you might not be familiar with some areas of employment law. For example, many businesses are not aware that under anti-discrimination laws it is illegal to ask how old someone is when applying for a job. As a workforce grows, companies may find it easier to hire someone who is versed in these issues,’ she says.

Interim answers

Nicola Grimshaw, director at recruitment company Digby Morgan, says a full-time dedicated HR person may be suitable when a company is seeking someone to fulfill a range of roles (such as writing contracts, arranging disciplinary procedures, and developing employee reward schemes), but sometimes a temporary hire might be more appropriate.

‘If you have a specific issue that needs addressing, such as overseeing a redundancy procedure, an interim HR manager might be a better solution. Since the recession, we are finding more companies going for this option,’ she says.

Do it yourself

Peter Rabbits, adviser at the Advisory, Conciliation and Arbitration Service, says there are basic rules approaches managers can stick to so as to avoid legal action.

‘Always keep written records regarding discussions on job changes,’ says Rabbits. ‘Sometimes SMEs rely too much on agreeing things orally, but having a written log will help to settle any disputes should they arise.’

Rabbits believes that a ‘consultative approach’ is the key to strong management-staff relations. ‘Talking through new practices and changes to job roles is really important. Problems arise when there’s a lack of communication. In our present economic climate change can happen very quickly, so it’s important to let everyone know exactly what’s going on,’ he says.

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