Back to HR Basics in 2023

Good human resource management is not only the domain of large companies with huge HR teams.  Focussing on the basics can set the platform for great human resource management for smaller businesses.  Go back to HR basics in 2023.

There are about 2.57 Million businesses in Australia, and 97.5% of those are regarded as small business with 20 staff or less.   

The individual contribution of each staff member in a small business directly impacts  the business’s success.   Unfortunately small businesses have fewer resources available to assist their employees to perform at their highest level.   Targeting scarce human resources support efficiently can have a very positive impact.  

While there are plenty of macro factors impacting business, the human resource management elements are pretty much the same, so getting back to basics and making it as simple as possible is key and something small businesses can do.

Business / Workforce Planning

Most business leaders do planning to prepare for the new year, so combine the regular business plan with a quick workforce plan.

• Consider competence and capacity requirements to meet the business plan.
• Assess existing staff and determine any gaps in capacity.
• Consider developing staff internally or recruiting to meet future needs. Take into account the lead time and cost for each approach.

HR Foundation

Establishing the essential HR infrastructure is often the first thing businesses do, however it is seldom reviewed or refreshed.

• Review and update employment contracts, ensure they are fit for purpose and compliant.
• Audit your payroll system, ensure pay rates are correct (standard and penalties), leave is accrued and recorded correctly, superannuation rate is up-to-date and records are maintained.
• Review the employee handbook and the necessary policies and procedures.
• Ensure WHS requirements are met – especially with regard to psycho-social risks.

Having a solid HR platform, will set 2023 up for success.

Capacity building

‘Future proofing’ the business is all the rage, in essence it requires building new capacity or capabilities into your organisation and team.  

• Consider long range business planning / forecasting and existing capacity in the business and determine gaps for recruitment or training and development, as per workforce planning.
• Brainstorm longer term trends or contingencies, weight likelihood and impact and determine capacity requirements to mitigate any risks. This might include supply chain or logistics interruptions (having to manufacture domestically), legislative changes, energy costs / shortages etc.  Consider operations and procedures to address these risks.
• Establish a redundancy in the case of the sudden departure of key talent, a group of employees or even an entire division.
• Develop a talent acquisition strategy to minimise the impact of one or two staff members.
• Establish cross-training / up-skilling, secondment plans or inter-departmental project for existing staff where they can become functional across different facets of the business. This will allow some redundancy, backup and capacity building. 

Some forethought and some consistent action will help develop the company’s human resource capabilities and allow the business to handle all changes.

Performance Management

Performance management sounds negative, when it should be a standard management tool, and is one often ignored, until poor performance comes into play. 

• Establish and agree on standards, goals and expectations for each team member on regular basis – if monthly is too often, try quarterly.
• Review the goals established and consider if new tools, training and development interventions are needed.
• Assess achievements against the established standards and reward accordingly.
• Agree on requirements for the next period.

Keep it simple, collaborative and integrated into typical ‘catch-ups’ and it will be part of management as usual and not the dreaded ‘performance appraisal’ which come too late and are often ineffective.

Focus on the HR basics and good performance management and recognition and 2023 will be fantastic.

E.L Blue provides a scaleable HR management offering to suite busineses of all sizes.