What do you associate with business growth? Increased sales revenue? More customers? Mergers, acquisitions, and expansions?
For many companies, growth can encompass a whole host of factors, but only one key metric is consistent across the board: your total number of employees.
As a business grows, naturally, so will their teams – and updating your HR processes is essential to stimulating a continued fiscal increase by attracting the best talent, the best leaders, and the best workers.
You should focus on:
Employees – The Backbone of Workplaces
The average cost of an employee goes far beyond their wage salary. You have to factor in benefits, training, pensions, bonuses, expenses, and overheads. As a result, average labour cost percentages typically make up 20-35% of gross sales – or even higher for service-based businesses. Therefore, streamlining talent retention, acquisition, and employee welfare is key to cost-efficiency (and ultimately, growth).
A SMARP survey discovered that employee engagement increases productivity in workplaces, and companies with high employee engagement were 21% more profitable than their competitors. Similarly, engagement reduces sick days and late marks – with those same companies expressing a 41% lower absenteeism. The benefits to looking after employees are endless and vital to overall business growth.
Additionally, employee value is typically measured by dividing a firm’s net income by the number of employees. Without them, a business wouldn’t be able to function – and knowing the financial worth of each individual will help put the importance of human resource management into perspective. Increasing your employee value comes down to offering mentoring and learning opportunities, to enable them to either expand sales skills, be more efficient at their job, or progress their own career. However, in a workplace that’s handling huge changes because of growth – diverting resources for HRM can be difficult.
How to Update Your HR Processes
Updating HR processes often involves time commitments, as well as financial investments. If you’re seeing your current employees struggling with their workloads, and need fast solutions to match your level of growth, we suggest updating your HR processes in two ways.
Step 1: Hire an HR Manager
Onboard an HR Manager who can work through current employee contracts, update terms and conditions, and interview existing staff to query what they’d like from work. Similarly, HR Managers will be a great addition to any growing team and allow you to give back to the staff who work so hard for you.
Step 2: Work with External Recruitment Companies
Recruitment is a significant player in Human Resource Management, and building employee expectations comes down to clear and detailed interviews, onboarding processes, and detailed contracts. However – this is a huge time commitment for many businesses, and when you’re experiencing exponential business growth, you likely aren’t able to divert the manpower you have available.
Working with recruitment companies can allow you to:
Similarly, external recruitment companies will already have existing contacts to help you find fast solutions – rather than lengthy outreaches that take some time to generate notice. Recruitment companies can connect you with experienced and qualified freelancers and temp-workers to sustain your rate of growth while searching for the permanent long-term candidate.
When you are ready to expand your team, Ross Clifford & Associates can help.
About Ross Clifford Associates
Forget everything you know about Recruiters – traditional recruitment processes are broken. If you want to attract the Top 15% of candidates there needs to be a different approach, and we can help you.
We listen. We understand. We care.
With two decades in executive search, we’re entrenched in the sectors we cover and our knowledge runs deep. We use intelligent search methods to connect with top talent, allowing us to deliver time and time again. We don’t just provide CVs, we provide the talent and support to help your business grow.