Effectiveness of Small Business Human Resources Solutions

Most businesses need employees unless it is a freelance or entrepreneur business venture that does not require extra manpower. With the employment of people into a business, even for a small business, there is a need to have the necessary human resources to handle employee issues.

With the common adage that “people are the company’s best asset”, even a small business should have a well set up human resource department to take care of the employees’ welfare to benefit the company in general.

It is important to manage employees well through the skilled and qualified hr department to enjoy higher employee productivity and healthier bottom line for the company. Fewer disgruntled employees would boost the company’s image and work morale within the organization.

Types of employees

A small business human resources department is crucial in starting the company on the right track of development. The company puts in place the proper guidelines in the training and interaction with employees to establish good relations between the company and the employees.

There could be entry-level workers, part-time employees, hourly paid workers or junior executives in a business. These simple and low level employees can play a crucial role in developing the company quickly to maturity with the right hr services rendered.

There may be middle management and senior management in a small business set up even if the number of these decision-making authorities may be small. The company human resource department must be able to cater to the needs and expectations of the wide range of employees that are crucial in maturing the company.

Human resource systems

With the progressive technology development in almost all aspects of business and life today, it is possible to have business human resource systems in the market to speed up the development of the company.

Small business owners may have too much on their plate; especially if they are new setups. An appropriate hr system for small business can put back a chunk of time to the senior management in focusing on the crucial aspects of the business such as sales, marketing and modus operandi than on employees.

There are plenty of small business human resources solutions in the market today that have been designed to meet the employee needs of the company. Professional hr services providers can activate the right resources and activities to satisfy employees and bring about higher employee productivity while allowing the company to grow faster.

Are People Your Best Asset? Measuring Human Capital

While it is highly lucrative for a company to have employees who are talented and highly-motivated, the exact cost of gaining this competitive advantage has yet to be quantified. Return on investment is the most practical way to measure the cost benefit of giving your employees that extra boost. Others may argue that competencies are the ideal method to measure human capital. What’s more telling here is the fact that human capital has a direct affect on the bottom line. It is imperative that productive individuals are employed. This fact itself is the hardest to measure.

The Standish Groups’ Chaos report gives a dismal outlook on the management of projects. 41% of projects are cancelled before completion, 25% cancelled due to scope changes, and only 16% of projects are completed on time and on budget. By implementing project management and developing consistent tools and processes for managing projects throughout the organization, this trend can be reversed. The benefits of utilizing a project manager on a project by project basis were measured in a study conducted by Wainscott Finch Associates. The study found that after taking into consideration the maturity level of the project manager, as well as the cost and schedule of the project, the return on investment was 13.4%.

When taking a measurement of job competencies, traditionally performance reviews were generated. The issue with this method was that the scale was not always clear and at the discretion of one’s superior. Also, performance appraisals were not always relevant to the employee’s job. Bottom line, whether or not an employee can successfully perform specific tasks to directly affect the productivity of that department or team should be the ultimate measurement of human capital. Competencies outlined in the job description should be rated on a five point scale and then put to the test after a training period. Based on salary, increase in competency after training, and the total dollar gained overall, the price of human capital will be revealed.

This formula was created by Dr. Dennis J. Kravetz. It quantifies the changes in human performance, and therefore the real return on investment. Companies are now starting to build human capital measurements into how they run their business. Human capital is seriously becoming a driver of competitive advantage. There are several different ways to measure human capital, and companies must now decide on a standardized method and factor that into their business model. Only then can “People are our greatest asset” be a bankable phrase.

B2B Human Resources – Learn Some More Details

What is “B2B human resources”? It is the abbreviation for business-to-business human resources. However, the term business-to-business alone means the transaction of resources. In human resources, they made use of the term B2B and incorporated the essence of human resources to it. Thus, do not confuse B2B human resources as something that is limited to electronic commerce. Apparently, B2B has been pulled out of its original sense and is currently being employed for something more and applied in other realms of business.

It is to some extent difficult to relate human resources and B2B. To make matters easier, it is important to know first what business transaction is being arranged between two companies. Organizations can transact employee resources by introducing and transferring some employees to one company and terminating the said employees from their present company. These transactions are done in the HR department. Thus, the B2B human resources come into play through the exchange of employees from an organization to another. The transaction could be as easy as the transfer of employees from one industry to a similar one or in the same businesson a different location. But it could also be about dealing with information between the companies. Levels of the same service or product are involved in the agreement of information between businesses and such information should be passed properly. The human resources group is the one accountable for producing and informing the policies and procedures that businesses may share and agree on. Information is absolutely a resource for the organizations accepting or giving that information.

At the very least, B2B human resources can be considered as the correspondence between one organization and another regardless of the purpose or subject matter of the communication. Transaction and communication between the human resource departments of both companies may be needed for varying causes. Because of these, organizations that focus on human resources came to exist. These organizations usually concentrate in services and software concerning the different factors of the human resources department. A company can then approach this organization to avail of services or purchase software regarding information on keeping files, staff training information, and information up-to-date, payroll standards, and any other areas connected with HR. The term B2B has definitely stretched its wings to encompass not only its original sense, which is in the area of electronic commerce, but to other broader business concerns as well.