4 HR Management Tips To Keep Small Businesses Afloat Through Economic Storms

4 HR Management Tips To Keep Small Businesses Afloat Through Economic Storms

December 8, 2020

Small businesses often don’t have enough resources to focus on human capital stability, so they’re easy to wobble during unprecedented economic events and market volatility.

1.  Continuously stay up-to-date with the labor law.

Upon economic volatility, the labor law will also be adjusted to stay relevant to the market changes. So, continuously updating and appropriately understanding the law is of paramount importance for businesses to ensure their benefits and compliance with regulations, thereby creating a sustainable reputation and improving employee morale for a long-term commitment.

4 HR management tips to keep small businesses afloat through economic storms

2.  Streamline the salary and bonus management processes

Salaries, bonuses, and benefits are a vital link between businesses and employees. This is also a sensitive issue that requires strict management and pay transparency. In addition to the fundamental commitment to the payment dates, small businesses need to establish an effective compensation calculation system in accordance with employees’ functions, positions, and performance. Payroll formula and parameters need to be accurate and use smart solutions to ensure both business and employee satisfaction.

3.  Don’t control employees. Manage the efficiency and quality of work instead

One of the advantages of small businesses is the strong connection and high commitment of employees, with less emphasis on the performance review and work process. However, it doesn’t mean that small businesses can completely let go of the reins. The managers shouldn’t take control over their employees, but instead be flexible about people management methods, putting work efficiency, productivity and quality first.

The management team needs to clearly communicate the business strategies and goals to employees. This practice can help employees better get aligned with the company’s visions, visualize their career paths, and feel a sense of satisfaction when meeting the company requirements. This is also a way to encourage employees and give them more motivation to strive. As for employees who lack capacity and work attitudes, they will eventually “self-destruct”.

4.  Optimize the HR outsourcing services

HR outsourcing solutions are significantly gaining trust amongst many small businesses. Needless to say, one of the SMEs’ typical pressures is to ensure that the labor force is always ready for urgent, short-termed projects. In this case, HR services for small businesses are of great help to reduce businesses’ risks in terms of quantity and quality of candidates within a limited budget. Companies can choose to cooperate with some HR business partners such as Talentnet – one of the leading HR consulting firms in Vietnam with in-depth experience, professional HR solutions tailored to business-specific needs, plus enormous and high-quality HR data sources.

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