Learning lessons from big business and using tech to manage the employee lifecycle.
The people strategy of a business can be vital in achieving success, having a dramatic effect on many of the key factors that drive continuous improvement.
Among these drivers are increased profits through business growth, optimisation of business processes, increased efficiency and agility, building capability and high-performing culture. With the right employment strategy, each of these drivers will be much more effective.
Having spent most of my career in large corporate organisations, I have helped develop business and people strategies that have led to transformative, globally consistent, value-adding HR programs.
Over the past decade, I have seen these large corporations transform with the implementation of HR systems and the use of technology to gain competitive advantage and business efficiencies.
Initially, they used HR systems to gain process efficiency to manage their employees, as well as ensuring they aligned with best practice.
More recently, these organisations have progressed further. They are now using cutting-edge HR technology to be more agile, ensuring competitive advantage in attracting and retaining the best people.
So what does this mean for small business? Well, innovation and dynamism are often generated with much more ease in small business due to flexibility and the ability to make decisions more quickly than larger businesses. However, the opposite is usually true when it comes to technology. Big business is where the cutting edge is found – they can plan better and invest more resources and money. In general, they are better positioned to have the right people with the requisite experience and knowledge in their business to move projects forward.
Smaller businesses understandably struggle to find the time and resources necessary to implement new technology. Small business owners usually spend a lot of time managing their businesses the best way they know, working really hard on day-to-day operations to make their business successful. They are not necessarily experienced in managing people or understanding the details of industrial relations, for example, let alone having knowledge of HR systems.
However, it is critical for small businesses to jump on board with HR technology now. Businesses are redefining how they operate in the digital world. This includes managing people in a society that expects immediacy and the ability to access information at the click of a button.
“Businesses are redefining how they operate in the digital world. This includes managing people in a society that expects immediacy and the ability to access information at the click of a button.”
Applying the benefits of technology to people strategies can bring great value to a small business. There are many ways in which improved and accessible data can help inform business decisions.
HR systems can, for example, provide useful data on attendance, or keep track of training, skills and licences so business owners can make more informed decisions.
New technology can also help with compliance. All business owners have a responsibility to ensure they work in line with legislative requirements and the different laws can be very daunting to navigate. Between Fair Work changes to National Employment Standards to OH&S legislation, and not forgetting Equal Opportunity Legislation and so on – it can be difficult for a small business to keep up.
HR systems can improve the storage of personnel data and files from the usual tactic of insecure paper storage. This brings benefits in the vital area of managing the employee life cycle – from recruiting and onboarding through to developing, retaining and offboarding. As you can imagine, keeping track of each of these employee stages can take up some time and resources. However, by automating processes for documenting sick leave, carer’s leave, parental leave or annual leave, or automating the management of an organisational structure, your business can develop best practice procedures and processes.
HR systems can also interface with current payroll systems so that processes such as leave can all be handled in the system, while you can view the progress at the touch of your fingertips.
Coordinating all these different types of duties can be time and resource-consuming, so it makes sense to take advantage of integrated HR technology solutions that combine different databases and streamline work processes.
Small business owners have a choice: be proactive and implement technological change now, improving your business processes and avoiding the risk of legislative penalty; or stay behind the curve while your competitors move forward. It’s a challenge, to be sure, but one which all business owners should think about confronting.
Following some initial investment in time and capital, your business will reap the rewards in terms of improved people strategies and the derived business benefits. These include: ensuring consistent processing; efficient and timely approval processes; access to employee information from one source; up-to-date compliance with legal requirements; the provision of analytics and data to make informed decisions; and competitiveness in the market.
Implementing technology will come with its challenges and will force a lot of change in the way managers and employees are doing things, but long-term the return on investment will be considerable. Essentially, the benefit of technology is giving the business the ability to be agile and efficient in managing their People Strategy.
Ultimately, small business owners should stick to what they do best – managing the day-to-day running of their business and working out how it can develop and move forward. HR is a vital ingredient but it’s rarely a speciality of the business owner, so technology can be key to your future success.
If you are thinking of HR technology as a solution for your small business, here are some tips to help you.
First, there are many HR systems on the market, so ensure you look around for the one that best fits your business requirements. If you need help with this, ask an expert.
Next, dedicate time to reviewing your processes and be prepared to make changes to how things are currently done.
You should spend time reviewing your employee data and pay attention to how you input the information into your new system. Also, make the effort to train your employees on the system.
Finally, ensure the system is properly supported within your business. After all, there’s no point investing in technology if you and your staff don’t implement, use and manage it properly.
Choosing your system is only part of the process. Implementing that system and overseeing the change management process is the second part of the challenge. Done right, this new technology can help revolutionise your business.
Jo Gazzola, The HR Dept Essendon
