The Problem that Start-ups face:
We all know why entrepreneurs start businesses, they are passionate about what they want to make and offer the world of customers.
A bit part of all the new Startups will always focus on delivery and operations to ensure a good service to their customers.
Most Startup will have limited capital and almost no focus on compliance, most Startups and Small businesses fail to implement the basic tools to manage and ensure that the business is compliant.
They simply think “I`ll get to it later”, but they fail to see that without having systems in place they fail to scale and grow their business.
80% of small businesses that scale and grow their business has implemented systems that help them to achieve it.
Some more stats you need to be aware of:
85% of start ups do NOT implement a HR solution.
15% of all paperwork generated in a business is lost every year.
To process 1 piece of paper costs a business around $20 in consumables and labor.
To find one piece of paper ,that is lost, costs a business $120.
To recreate or replace that one piece of paper costs a business $220.
Can your business afford to use paper-based processes? On average a employee submits around 10 leave request forms per year. So at least one leave request will go missing, and even lost. Not even looking at the time spent processing it, the time looking for it, and what about other papers that make up the Employee HR personal file?
Challenges facing Start-Ups today
If you talk to the Founders of a Statup, the reality is that HR is an afterthought and strategic HR is rarely discussed until there is a need to rectify an issue:
- The company is in serious financial trouble and correct HR processes are needed to manage the downsizing or changes in employee roles.
- A serious Human Resources issue happens that might land the organization in court, and then it is normally too late.
The main thing to take away form this, is that your business needs you to be Proactive. Both the points listed above are reality in today’s world. It can happen to any business owner, faster than they think. Business owners and founders of Start Ups are working hard and they are forced to look at HR reactively.
Having accurate record keeping for HR data is extremely important. Having accurate Leave balances, Employee Personal records, Payments of claims, Next of kin or Emergency contacts, Employee benefits and more.
Remember that you have a few employees reporting directly into you, they only need to remember how many days leave they had used and how much they accumulated, you need to remember all of their balances. Making a mistake will damage employee happiness and trust. It will cause arguments and unhappy staff.
We also need to remember that entrepreneurs are usually young and does not have the experience of having worked in a corporate environment to learn from strict business processes. Most small Business or Start-Ups are managed by a sole owner and inexperienced managers, they also lack funding to secure the correct systems and tools to ensure compliance.
So what could the Solution be?
It’s quite simple, implementing an affordable HR platform that contains all the key features that a Start-Up would need to operate. Ensure it is simple to use, so you don’t need to train employees on how to use it.
It must be easy to implement, you do not want to spend months uploading data in different environments. I must be cloud based, so it can be accessed from anywhere. We know Business owners and founders travel and work late nights, they need access to the personal data 24/7.
Another very important note, make sure you are compliant from day one. Having implemented the system from day one means it forms part of the business, anyone that joins the company just needs to use it, you do not need to convince them. Very little change management is needed to implement it, if its there from day one.
Trying to implement a HR solution at a later stage will be met with frustration and slow or no adoption of new technology.
It’s very simple, people don’t like change. Read more about Change Management
Advantages of HRSimplified and why you should implement it for your business
- Easy to adopt into your business
- Simple to Setup and onboard your employees
- Cost effective, and Online, access from anywhere
- Paperless system, no more paper-based HR forms
- Online Document Storage for HR records
- Reporting engine to assist with being compliant
- Additional modules available based on your needs
- Month to Month packages – no Long-term commitments