The Solution to The Human Resources Problem in Young Enterprises
The initial steps of starting a young business are already difficult, and it will be even more difficult without a talented team. Young enterprises can stop worrying and focus on key business strategies while still ensuring business operation by resorting to human resources outsourcing services.
Young businesses are “in tight spot” due to lack of talents
According to a survey by Cbinsights, the factor "incompatible HR staff" ranks third in the top reasons for new business failure. Mr. Huynh Kim Tuoc - Director of SiHub, also pointed out the weaknesses of many young businesses are the instability of staff and a lacks of key talents, which can easily lead to failure right from the start.
People are the core factor to the success of businesses. However, the popularization of capital raising programs as well as financial pressure from COVID-19 have unintentionally placed emphasis on cash flow, which in turn led businesses to neglect to build the workforce.
Ms. Ly Ngoc Tran, Talentnet’s HR Outsourcing and Executive Search Services Director, highlighted the importance of human capital to the businesses’survival and future growth. She specifically insists on that businesses should heavily focus on talent acquisition in the first three years, as inadequate number of workers can possibly lead to stagnation in workload and imbalance in management. Moreover, the lack of talents can further cause strategic business plans to be less effective and young enterprises may find it hard to reach the business goal.
HR management solutions for young businesses
- Empathize with the uniqueness of employees
For startups’ cost efficiency, the leader will assume the role of HR, as well as their skills, especially empathy.
Understanding is the ability to read one’s emotions. Meanwhile, empathy is the skill of putting oneself in another person's shoes to fully understand their feelings. Leaders need to learn how to “settle down” to “truly listen” in order to hone the empathy skill. From there, the leaders can make suitable human resources policies, win people's hearts and build a loyal team that sticks with the business for the long haul.
- Acquire “reinforcements” with HR outsourcing services:
In terms of recruitment, talents are not interested in young businesses because of unattractive salaries, benefits, and reputation. This is even more difficult when employees stick to their current jobs during the pandemic.
To solve this problem, young businesses can "borrow" resources from society through HR outsourcing services. This is a favourite method of large enterprises, as a considerable investment, helping businesses focus on key tasks such as product quality-assurance, customer experience, and making profit". In the current context, outsourcing personnel is an "emergency exit" for young businesses to get out of human shortage and find "reinforcements" right away.
Taking “baby steps” entering the market, young business leaders need to be quick in choosing survival tactics and not to lean heavily on either business result nor human capital. HR Outsourcing is a reasonable consideration for small businesses to relieve the workforce burden, and ensure strong and fast progress in the begining.