Free People Strategy for Small businesses

So here we are at the end of June already and hiring people is not always a top priority during the summer months - unless driven by attrition. Whilst we wait to see if and who the government will be in the next couple of weeks many businesses are sitting tight. Thank goodness the summer has finally arrived though!

It is an interesting time because whilst many employees are thinking of their summer holidays it is a good time for business owners to review their people and recruitment strategy - maybe sat somewhere in the shade with a cool drink...........

Clearly not all businesses are quieter in the summer months and I am not advocating you only review your strategy once a year but why not take a strategy day out of the office?

Many businesses do not have a people strategy or even a recruitment strategy because they don't deem themselves big enough. The reality is that if you plan to grow your business then you will be employing staff at some point, unless you go the associate or contractor route. Deciding to employ people, or not, is actually part of your people strategy. Your approach to working with either employees or associates is part of your people strategy.

In essence as a business owner if there is more than you working in your business then you have already have a people strategy, even if you don't call it that. When looking for investment having a documented people strategy becomes critical but there are many benefits to having a plan well before this.

It does not have to be complicated.

1. Goals and Objectives

Your people plan aligns with the business strategy of the business. It outlines specific goals for your workforce such as improving employee engagement, developing talent or reducing turnover.

To start with it can be as simple as having a cashflow forecast that shows when you plan to add headcount to grow the business. Then you will need to consider the goals and objectives of that single employee. A good job description which outlines what success in that role looks like is the next step. You can then use this to assess potential candidates to make sure you hire the right person. And finally you can use this criteria to measure performance during the probation period as well so the work is a solid investment of time.

You will need to build in the costs of recruitment, as well as the costs for engagement and development activity. Don't forget the cost of equipment! Merchandise can be a big boost for employees that doubles up as brand awareness as well. The first hires in any business are critical because quite often there is very little structure and it can be firefighting with competing tasks. This is usually why we hire friends and family at this stage. This can get interesting but more on that another day.

My advice, define what success in the job looks like first and be specific and measurable. What does success for your employee look like? And how are you going to keep them engaged and with you as an employer? Answers these questions and point 1 is complete.

2. Talent Management Strategies

What does this really mean? Basically how the business will attract, hire, retain and develop its employees. This includes the recruitment strategy, the onboarding process, any training and development needed, performance management process and career development.

For smaller businesses the cost of recruitment agencies may be too expensive so the recruitment strategy could involve doing it yourself. Think about how you are going to recruit, are you going to use word of mouth, advertise directly yourself, take an apprentice or ask for referrals. Don't forget to put all these costs in your cashflow forecast............

The onboarding process is next up and involves making the new employee feel part of your company and understanding the business. This is where merchandise can be really helpful in feeling part of the business, especially if you are small. Small businesses can be more flexible and do not underestimate this as a retention tool.

Remember that everyone hates being the new person and there are often unwritten rules, especially the more employees you have. These need to be explained to new starters and it is good to keep a list of these as they develop in your business. Examples are little things like expectations around contributing to birthday collections or bringing in cakes, to dress down days and volunteering opportunities.

3. Compensation and Benefits

The people plan should address how the company will compensate and reward employees competitively. This includes salary structures, benefits packages, and recognition programs.

For small businesses this should be in your cashflow forecast anyhow but there are lots of little ways to reward your people. You can get quite creative here and some examples I have seen is cream teas in the office, litter picking team building, duvet days and birthday leave. Little touches that have no additional cash value other than salary costs but give back to the employee and sometimes the wider community.

Consistency and transparency are important with benefits so I would recommend ensuring you outline when salaries are reviewed so everyone understands. Having policies in place for volunteering days, employee referral schemes and recognition programs seems overkill in a small business but it does save you the pain of misunderstandings. We are all unique and think differently so I advise policies, friendly and easy to read ones at that, but written policies.

4. Culture and Engagement

A strong people plan fosters a positive work environment that motivates and engages employees. This can involve initiatives to promote teamwork, communication, diversity and inclusion, and work-life balance.

As a small business you really create the culture every single day and having a clear vision, mission and set of values to work with helps ensure that everyone understands the DNA of your business. This is not always done when you start a business and I highly recommend taking the time to do this. It informs who and how you recruit to ensure they are a good fit along with how the business will operate from a culture perspective. If you have a value of Respect then guess what, you need to respect your employees and work with them. If you have a value of Partnership then you want everyone who works with you to be collaborative

I hope you found this useful 😊

The benefits of a even a simple people plan can help with direction, engagement, retention, productivity, morale and ultimately better business performance.

If you need any help with any element of your people please get in touch.

Lindsey

www.claritypeople.co.uk