How can SMEs get benefited by HR Policy?

HR policies provide structure, control, consistency and fairness to all the employees. It also ensures compliance with legislations and let employees know what is the company’s responsibility and what is their individual responsibility. Organizations that have policies are better prepared to deal with workplace issues as it provides structure and help organizations run efficiently. For small businesses, HR policies and procedures plays a vital role in its future success.

 

HR Procedures are linked with policies and design lower-level processes, such as daily, weekly or quarterly functions and job activities. Procedures bring a set of functions which are consolidated in a defined category from hiring to firing.

 

A competent workforce is the most important asset for any organization. Thus, to positively focus on human resource development and management it is in the interest of the company irrespective of its size, Sadly, the HR policies and activities are neglected by many Indian SMEs. According to a survey by CII, around 80% from small enterprises and 20% from medium enterprises respondents agreed that they do not have any formal HR structure or department.

 

Benefits of having HR Policies...

 

Low Employee Turnover:

While you have a right HR policy in place you can make your employees aware of your expectations and align their individual and organizational goals. It also helps to identify why employees leave your organization and to improve the loopholes to retain talent.

 

Happy Employees:

Having job responsibilities and duties in place make your employees aware of their work and also it helps to engage them in their work and activities and there are higher chances that engaged employees stay longer with the company.

 

Satisfied Customers:

Engaged and happy employees perform higher than the average employees and a satisfied employee can make your customer happy and satisfied with your services/products for sure. High performance and satisfied employees lead your organization towards delivering quality and customer satisfaction.

 

Decreased Costs:

Low employee turnover decreases the cost of recruitment. An average cost to replace an employee is 1/5th of an employee’s salary. Organization having HR policies can go for cost cutting in many areas by improving manpower planning and productivity.

 

Business Growth:

HR policy helps to attract and retain talent. Expert and experienced employees have knowledge of your products, services, system and processes which make them valuable and enable them for remarkable contribution which leads to business success and growth.

 

Any organization must have HR policies in place regardless its size, scale and industry to enhance its functioning and profitability. Myhrpolicy provides the best HR Policies for SMEs and Startups.