HR for SME’s – do we really
need it?
Many SMEs do
not have an HR function, which is understandable in organisations with few
employees. A full-time HR person would be costly and probably not fully
utilised if the headcount does not warrant it. 
As Human
Resources are ultimately a management responsibility, management should bear
the full brunt of this in an SME. However, many managers are not well versed in
the full HR functions, and HR mistakes due to a lack of understanding of the
current HR environment can be costly and time-consuming.
The
following HR functions are critical to any business, regardless of size:
Recruitment
SME’s do not
have the luxury of making a bad recruitment decision. Whilst a “mismatch” in a larger organisation
can be remedied through training or possible re-deployment, an SME needs a new
employee to hit the ground running at full speed.
The
recruitment process is imperative in terms of ensuring you have the right
person for the job, the first time round!
Probation
Even with an
established, sound recruitment process ‘bad apples’ can still slip through the
cracks. Therefore, a strong probationary management process is also critical.
Not only will it address issues before they become a major problem, but it will
also help you to understand and ensure that new employees who are performing
well will derive continued job satisfaction.
Performance Management
A poorly
performing employee needs to be dealt with fairly and consistently, regardless
of the size of the organisation. SME’s should be extra vigilant in this regard,
as they are often the target of employees who are looking to take companies to
the CCMA in the hope of a pay-out based on pure management ignorance.
Again, a
poor performance management process that is well laid out, documented,
understood and enforced will prevent any misunderstandings and possible
negative findings at the CCMA.
Remuneration
When it
comes to SARS, ignorance is never bliss. The South African legislative
framework is very clear in terms of how salaries should be handled, and any
deviations from this can be costly!
Labour Relations
Many of the
Labour Relations issues that land up at the CCMA are preventable if a sound
Labour Relations framework is in place. The law does not differentiate between
different size organisations, and therefore it is imperative that SME’s fully
understand the implications of all aspects of Labour legislation.
How do SME’s address all the above?
There are a
number of options in this regard:
1. Call in
an expert! Use the services of a suitably experienced and qualified HR
consultant, who can help to set up the principles and processes of the above,
and then work on an ad-hoc basis only as and when needed reducing the cost of a
full-time HR salary.
2. Ensure
that all managers are fully versed in the HR spectrum of their HR
responsibilities. On a cautionary note, it is important to understand when HR
matters start to take over more time than the actual operation of the business
–this may be a sign of poor HR processes and procedures, and time to call in an
HR expert!
3. Outsource
your HR requirements so that all HR matters are dealt with by HR professionals
– there are various options available, to meet both your business and financial
requirements.