Sell small business on strategic HR (Editorial)

Success brings its own challenges. When a business owner finds that what was once an entrepreneurial idea pursued by a small intimate team has become a flourishing firm with an expanding staff, hiring an HR practitioner becomes a concern.

Administrative needs usually feed the realization that it’s time for HR in-house. Typically, when growing companies have between 50 and 100 staff, they start thinking about the value of adding an HR professional. It’s no longer a case of the accountant filling out Records of Employment and handing out cheques. Hiring, firing, talking to employees about benefits and complying with health and safety legislation — to name but a few tasks — all take time and justify putting HR on the payroll.

Because administrative needs are usually the motivator for bringing in HR, small companies commonly overlook the strategic function a qualified HR practitioner can supply.

Organizations considering taking the HR plunge should ask themselves what they’re looking for. Do you want a glorified clerk to do general administration?

If so, you’re missing the out on the bottom-line advantage of a professional who plays a strategic role in organizational design and effectiveness.

As an internal consultant, an HR practitioner can assist all employees in seeing how they can contribute to profitability. It’s a case of having the ability to assess employee needs in order to improve productivity. Unfortunately, too few entrepreneurs make the leap from administrative needs to strategic capabilities — and because the company is in a growth phase it’s easy to think you’re doing everything right. Success may continue, but not at the rate an organization with strong HR input could achieve.

Because the business is only thinking about administrative needs, a person with administrative skills works well, so the hire comes to the table without strategic abilities from day one.

So while administrative needs drive a firm to consider HR in-house, companies should step back and review the strategic possibilities. At this point it’s also a good time to think about the current technologies that can assist the new HR hire and take some of those administrative tasks away so there’s room to work on the bottom line.

HR professionals themselves have a role to play it opening the eyes of business owners. Practitioners need to prepare themselves to play a strategic role and then sell their ability to do so.

If you’re interviewing for a position steer the talk away from your administrative skills and let them know what high-level HR is all about.

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