The reasons for this are two-fold. Firstly, in many cases the financial cost of hiring a qualified human resource manager is simply not justified in a small team. Secondly, as most small- and medium-size enterprises (SMEs) start with a tiny team and grow organically, the first employees are likely to be family or a close-knit, cohesive team of like-minded people who 'manage themselves.' It is only as the business grows and needs to expand its work-force that staff issues become a challenge, and greater attention is placed in this area.
Hiring the right people is important in any organisation, but for a small business it's critical since one staff member can literally make or break the company. Sound familiar? Fortunately there are some practical and effective ways to manage these HR issues in a small or growing business.
Consider the following:
The enjoyment and success of running a small business is directly proportional to the quality and cohesion of your team of staff. Whilst few if any business owners are HR specialists, focussing some attention on this area is important if you want to succeed in the long term.