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Top 10 Strategic Human Capital Management Solutions for Small Business

Employees are the most important elements of a business because they are the engine room of a business. Now how do you keep your employees happy and loyal? How do you boost employee’s morale and increase productivity? How do you ensure that your employees deliver results that are above average?

 “The competition to hire the best will increase in the years ahead. Companies that give extra flexibility to their employees will have the edge in this area.” – Bill Gates

The questions asked above are the reasons why it is necessary for you as an entrepreneur to have a strategic human capital management solution on ground for your small business. These will ensure that your employees would be effective in carrying out their daily tasks and create a lasting relationship with the company. So if you are interested in learning how to build a competitive workforce, then below are the top 10 strategic human capital management solutions for small business.

People are definitely a company’s greatest asset. It doesn’t make any difference whether the company’s product is cars or cosmetics. A company is only as good as the people it keeps.” – Mary Kay Ash

 Top 10 Strategic Human Capital Management Solutions for Small Business

  1. Create an Effective Employee Framework

I’d rather interview 50 people and not hire anyone than hire the wrong person.” – Jeff Bezos

You need to determine right away which qualities are necessary for the various positions in your business. This way, you would be able to filter the applicants and choose the best people that fit the job.

  1. Give your employees proper orientation

Giving people self confidence is by far the most important thing that I can do because then they will act.” – Jack Welch

You need to provide new employees with information about your business. Every employee has to understand the company’s objectives and its activities to be able to perform in the best way possible.

  1. Regular Assessment of Personnel

“Inventories can be managed but people must be led.” – Henry Ross Perot

As an employer, you have to assess your employees regularly and see how they are carrying out their tasks and responsibilities. If the performance of an employee is unsatisfactory, you have to tell them what areas they need to improve.

  1. Training and re-train your employees

Employees have to be trained occasionally, especially when there are areas for improvement. Hold meetings and trainings every now and then and help your employees improve their skills and abilities that are necessary for the job.

  1. Give Incentives and Bonuses

If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it, you almost don’t have to manage them.” – Jack Welch

Entrepreneurs should try to give performance incentives to encourage their employees to do their best all the time and reward them for a job well done. With bonuses and incentives, employees would feel that their employers actually care for them.

  1. Getting Feedback from Employees

Strategically, a major function of the CEO is to look for bad news and encourage the organization to respond to it. Employees must be encouraged to share bad news as much as good news.” – Bill Gates

It is always best to interact with your employees and know what’s going on in their heads. You may ask them for suggestions on how to improve your products and services. This way, you would be able to maintain good relationships with them.

  Top 10 Strategic Human Capital Management Solutions for Small Business

  1. Team building

Individuals don’t win in business; teams do.” – Sam Walton

You’ve got to give great tools to small teams. Pick good people, use small teams and give them great tools so that they are very productive in terms of what they are doing.” – Bill Gates

This is a good way to keep your employees united. You can take them out occasionally or make them go on short trips. This strengthens the bond between the people working in your company and helps maintain a friendly atmosphere in the workplace.

                “The team with the best players wins.” – Jack Welch

  1. Salary Management

There is one rule for the industrialist and that is: make the best quality goods possible at the lowest price possible, paying the highest wage possible.” – Henry Ford

Always give your employees what they deserve. See to it that they get the correct amount of salary every month, according to the job that they are assigned to do.

  1. Comply with Laws and Ethical Regulations

Even small business owners have to comply with the laws. Make sure that you understand all the labor laws in the country and apply them while running your business to avoid getting complaints from your employees.

  1. Adapt to Changes

How fast a company can respond in an emergency is a measure of its corporate reflexes.” – Bill Gates

There will always be changes in every aspect of a business and entrepreneurs have to be flexible and adapt to them. You should also follow trends and inform your employees about these so that the whole company would be able to adapt to the change.

Willingness to change is a strength, even if it means plunging part of the company into total confusion for a while.” – Jack Welch

 “A company’s ability to respond to an unplanned event, good or bad is a prime indicator of its ability to compete.” – Bill Gates

As a final note, I advice that you implement these top 10 strategic human capital management solutions on your small business. Then sit back and watch how productive your business will be.

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