Editor’s Note: This is a guest post by Julie Capuo from UK-based We do HR. Her opinions are her own.
If you’re an entrepreneur, you will find it essential to have an effective Human Resources (HR) business plan. You may have already discovered the value of a good strategic vision and overall business plan, but it’s every bit as important to ensure your HR plan is effective to secure the success of your business.
Without one, you will find your staff underprepared and not ready to work towards your organization’s goals. You will find it more difficult to hire new employees when the time comes, and you won’t be prepared for turnover and succession planning in the management of your company.
Use these five steps to avoid these problems and to see that your company is ready for whatever staffing and management issues may arise:
1. Identify Your Employees’ Abilities
Before you start thinking about what your future hiring strategies will be, you’ll want to assess your current workforce’s skills and abilities. You’ll probably already have files with your employees’ resumes, including their education history and the projects they’ve worked on for you.
This can clue you in to some of what they are capable of. In addition, many of the employees you already have may possess skills and talents you aren’t yet aware of, and you may be able to put that to your advantage.
How can you find out about these skills? Simply ask! Your employees will appreciate it if you take an interest in them and you’ll be able to keep a record of their strengths, which you can archive using interactive organization charts and other systems.
2. Have a Succession Plan
Eventually your business will face changes in management; this is an unavoidable part of the natural growth of any organization. Managers will come and go and positions will be created and dissolved as you continue to expand and reorganize.
You’ll want to be ready for this when it happens by having a succession plan already in place. It will be up to you whether you want to include your employees in the creation of this succession plan. Either way, be aware of their career goals and what their plans are for the future, and don’t hesitate to inform them when changes are taking place.
By doing this you’ll be aware of what the most important positions in your company are and who may have the skills to fill those positions.
3. Have a Development Plan for Your Employees
Once you have a strong workforce that you can trust moving forward, you are ready to start figuring out how to maximize their potential within your organization. First, of course, you’ll want to have your own goals for your business in mind.
Once you know what your company requires you can begin to line up your employees’ goals with your own. Discuss with employees what their own goals are and weigh that with their current levels of skills and experience. With this information you can decide what skills your workforce will need to develop in order to advance your goals.
From there, develop a plan for the employees to go about acquiring the skills they need and begin applying them towards the greater good of the business. Studies have shown that the main reason employees stay with the company they work for is because they feel challenged by the work they are being given.
If they feel like they are being included in the growth of the company, then they are even more likely to stick with you. So make sure you include your employees in your development plan, and also make sure that the plan is given a positive spin.
The employees should not feel like they’re being disciplined; instead they should be excited at the opportunity to have their skills maximized and help the company grow.
4. Conduct a Gap Analysis
A gap analysis is a formal study comparing the resources your company currently has to what they may need as they grow and develop in the future. If your HR services are outdated, or in danger of becoming outdated, a gap analysis will reveal this and allow you to make the necessary improvements to keep your company going strong for years to come.
You’ll want to analyze the job descriptions you use when hiring; check if they are current or if they need to be updated to align with your current expectations for your employees.
Make sure your employee handbook is up to date as well; the employment laws may have changed since the last time you updated your books or you may have expanded into new territories with different laws in place. You might need to make changes to your policies so be thorough in your analysis of the handbook.
Your training policies may also need to be updated. Changes may also have taken place in the requirements regarding health benefits and sick leave so keep abreast of current laws. The current performance of your business will also affect the future; you may need to make changes to your employees’ rewards packages depending on whether your revenue is up or down.
5. Increase Your Resources as Business Grows
Your workforce may need to change depending on where your business currently is. You may need to look for new employees or train your current ones.
Ensure that the rewards packages you provide are in line with the expectations of the candidates you hope to hire. Also ensure that you have a strong company culture to further incentivize the most qualified potential employees to want to work for you.
With these steps in mind, you will be able to streamline your recruiting process and attract only the most qualified and talented individuals to work for your company.
Always keep this information in mind so that you can be updating and changing your strategy whenever necessary.
Editor’s Note: Julie Capuo is a Director with UK-based We do HR delivering “best practice” in the human resources arena whilst at the same time appreciating that companies need to find a solution that works, rather than one that just goes through the motions.