HR, Benefits & business
The world around us changes at an unfathomable speed. Did you know that our knowledge base now has the resources to double every single day? That means what we learned last year might be obsolete today, and what we learned five years ago is closer to ancient history than it is to relevancy!
Education and knowledge are prime keys to success and in direct relationship to your business and your workforce. When employees are in a working environment that encourages continuing education, they will, in turn, have a greater capacity to do their job exceptionally well. This is not industry or job title specific. Whether its training in customer service and conflict negotiation or engineering and technology, the desire to learn and the need to grow personally and professionally are universal.
The advanced speed of knowledge is just one factor. Another challenge is how we build our workforce. Most employers hire to fill the current role, with little thought about future growth of the new hire or the business’ goals and objectives. This one-sided thought process literally sets the stage to develop challenges such as high turnover, poor leadership and business culture.
An article written by Joyce E.A. Russell, University of Maryland School Business published by the Washington Post found that “96 percent of employers agreed continuing education improves employees’ job performance” but only 11% did anything about it. Knowledge and experience may seem like a hiring paradox, but you can have the best of both worlds, you have to create it!
It is not as complicated as it may sound. All it takes are clearly defined company goals, hiring metrics and a focus on providing continued learning opportunities for high valued employees.
Create a Personal Growth Strategy
As a part of the hiring process and employee on-boarding with your company each employee should have a Personal Growth Strategy. The strategy should define their current skill set, future growth options, metrics to achieve their personal goals and company objectives, as well as industry education requirements.
Goal oriented employees will embrace their growth strategy as a personal challenge. No one wants to lose. You will soon see talent rise to the top. Put your focus on those employees who have proven themselves and give them the opportunities. Look to broaden their understanding of their work with institutional learning, hands-on experience, and supplement their learning with vendor and online classroom education. Whether its form vs. function. Theory vs. practicality. Ideas vs. execution. You are giving your employees the knowledge they need to excel.
A personal growth strategy not only lends itself to opportunity, it also encourages employee responsibility. By establishing defined metrics up front you are creating an environment of achievement. Some will move quicker, some slower. Their growth strategy becomes the foundation of their employee review, and their drive to succeed at your company.
When they win – you win
Continued learning can be mentorship, coaching, tuition reimbursement, access to paid courses, admission to a seminar circuit or something else entirely. Giving them the chance to learn means giving them the chance to succeed again and again, no matter how your company, your industry and the world changes around them. Our online courses with Udemy can be easily implemented and become a valued company benefit.
Lead from the front
When you dedicate yourself to keeping pace with new knowledge, it puts your company on the leading edge of the learning curve - ahead of your competition, new hires will be attracted to your company and current employees will align with your objectives and become dedicated to your success, thus reducing employee turnover, increasing productivity and improving your bottom line. And when it comes to future growth and expansion, you don’t need to look very far to find highly qualified talent.
Today more than ever, small businesses operate on a tightrope. They pay for only the essentials to keep cash flow secure, and leaders often wear many hats to keep payroll lean. There’s nothing wrong with this approach—bootstrapping your way to success through hard work, and stringent discipline has worked for many companies! Just make sure you’re not skimping on the things that will enable growth, like outsourced HR.
Many small companies don’t see the need for HR. There are only a handful of employees who all appear to get along—what’s the point? Contrary to common belief, your HR department isn’t all about hiring and firing. A strong HR core lays the groundwork for business growth in many ways, and outsourcing is often the most cost-effective means for budding businesses to take advantage of these benefits. Here’s why outsourced HR makes sense.
1. Better employee retention
Did you know the average financial loss of an hourly employee to a company is $1,500, and 1.5%– 2% for a salaried employee? How many employees have you lost in the last twelve months that you can't explain? Each loss is a direct impact on your bottom line, making employee retention a priority.
Employee retention is a function of HR and a conduit between leadership and employee. More than just hiring and firing, an outsourced HR solution gives your employees the experience they expect, like benefits administration and conflict mediation resulting in a more secure outlook for their career with your company. Peace of mind, especially in our current environment, priceless.
2. Better recruiting and talent acquisition
Just because you run a business doesn’t mean you’re a good talent evaluator—or that you have time to search for and hire quality talent. Leave it to HR! Growing businesses need to add the right team members quickly and effectively, to shoulder the burden of responsibility, and foster growth. Outsourcing HR will pay dividends in the form of new hires who are properly aligned and equipped to help your business succeed.
3. Growth opportunities by focusing on operations
There’s a reason large companies have an HR department—it’s more than a full-time job for any single person! Small business owners can’t add “HR Generalist” to the hats they’re already wearing. Leaving HR and its many duties to an outsourced partner can free up time and energy for business owners to focus on what matters: growth opportunities for their business, less stress, and more balance.
4. Creation of SOPs and workplace standards
Order, process, and organization are prerequisites for growth and success. You can’t expect to scale your business if you have no scalable processes in-place! HR is where these resources are created and where workplace standards come to fruition. Outsourcing HR can lay the groundwork for standard operating procedures (SOPs) that enable growth. This is also how you keep your business mission-focused and everyone happy and productive.
5. Benefits administration
Benefits administration is a benefit all by itself—mostly because it’s so important! Benefits are a big part of the reason employees choose to work for small companies (instead of higher pay). You need to know your way around everything from health plans, to retirement plans, to stock options, and more. Leave it to HR to qualify, explain, manage, and execute on these benefits, so employees can realize them as a portion of the total sum of their compensation.
6. Cost control
All of these points add up to a smart decision: outsourced HR. The best part is, outsourcing HR costs next to nothing for small businesses. It might actually cost you more not to hire an HR partner - so why try and accomplish everything all by yourself?
Based on resources from payscale.com and Glassdoor, an HR Specialist earns, on average, $60,000, and an HR Director makes just over $82,000 annually.
Outsourced HR services cost an average of $500-$700 per month. If Outsourced HR can improve your bottom line, reduce turnover by just one person, and improve your productivity, the net cost to you – ZERO.
At Employee Solutions Group, people, productivity, and profitability are what we do best. As your HR partner, we work diligently to understand and actively engage in your goals and objectives to build a successful business. Call to schedule a consult at (630) 888-7144 or email at firstname.lastname@example.org
To learn more go to www.employeesolutionsgroup.com