HR management can be a challenge for many small-business owners. They often have limited or non-existent in-house expertise. As a result, they sometimes lack the confidence to deliver effective programs and ensure employees’ needs are met.
There are four key areas of HR where small businesses suffer from a lack of resources available to bigger companies. If these areas are not addressed with alternative solutions, small businesses are more prone to lack clear protocols, experience disgruntled employees and create a poor workplace environment.
Problem one: hiring the wrong people
Finding the right staff is a difficult but vital process. All too often employers don’t get what they expect — discovering too late that the candidate does not have the right skillset or lacks the motivation to do the job. This can result in poor performance, early termination or the employee abruptly quitting. The stakes are especially high for small teams, where everyone’s role is essential and hiring the wrong people over and over again can be the difference between a successful business and, in the worst-case scenario, closure.
Additionally, small-business owners can be particularly susceptible to dishonest applicants. Lying on a resume or job application is a growing problem, and small businesses who lack the time and resources to thoroughly vet candidates are particularly vulnerable. An estimated 53% of job applicants commit some form of resume fraud and 31% of people admit to lying on a resume, according to 2012 resume falsification statistics from ADP, Accu-Screen and The Society of Human Resource Managers.