HR in SMEs

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HR in SMEs
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How to introduce Human Resource Management in SME
and craft sector
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Human Resource Management in SME and craft sector

• How ?
• What ?

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HOW ?
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UNIZO HR initiativesTools

• Checklists
• Website
• Online seminars
• Online checklists
• Competence management software
• Manual competence management
• Leadership skills
• Newsletter

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Checklists

• Low threshold
• Professionalize HRM
• Step-by-step
• On the basis of analysis
• Attention for lesser applied solutions in SMEs

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Checklists

• Analysis of HR policies
• Becoming an attractive employer
• Recruitment
• What to do when a new employee starts?
• Training and development
• Communication
• Laying-off staff
• Diversity

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www.hrmcoach.be
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UNIZO HR initiativesTraining

• Info sessions
• Recruitment
• Motivating staff
• Wage policies gt worker benefits
• Round tables
• SMEs worker unions
• Diversity within the SME
• HRM Coach network

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HRM Coach network

• 10 sessions competence management
• 60 SMEs
• 4 locations
• Networking
• Experts

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WHAT ?
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Main tasks within traditional HR

• Pay-roll administration
• Recruitment
• Managing people

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New HR

• Management of strategic human resources
• Coupling HR to business strategy
• Management of transformation and change
• Creating a new organisation
• Management of the human resources
• Listen en react to employees
• Management of an administration
• Rethinking administration-processes

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HR in SMEs

• Entrepreneur often HR Manager
• No background
• Extra responsibility
• Not main goal of being entrepreneur

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Needs of SMEs

• Research 2001
• Not enough tools
• Time consuming
• Exaggerated
• Welfare problems of employees
• Less and less skilled personnel/candidates

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The state of HRM in Flanders SMEs

• Very different from SME to SME
• Differences are not related to size or means
• Entrepreneur is key-player

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1. MSP

• 2 years ago 50 employees
• Separate HR Manager gt wife of owner plays
  key-roll in HR
• Now 150 employees (ICT sector)
• Harder harder to find staff
• Wages are big decision factor
• Need for structured HR policies and methods
• Focus on training development in existing HR
• Focus on good salary policy

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2. Trappen Teck

• Family Business
• 20 people
• Entrepreneur HR Manager
• Harder harder to find staff
• Skills attitude
• Wages are big decision factor
• Need for structured HR policies and methods
• Only pay-roll

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3. establis

• 2nd generation
• Entrepreneur HR Manager
• Difficulty with finding staff
• Focus on training
• Everybody starts in the same function
• ISO certificate gt basis of HR
• Need for more focus on coaching and
  career-planning

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4. De Noordboom

• Expanding gt family company and atmosphere is
  disappearing
• Young versus old
• Entrepreneur and employee HR team
• Combination accounting HR
• Lack of structure is a strain on growth

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5. Muyshondt

• 30 employees
• Difficult to find staff gt work with foreigners gt
  language barrier
• Focus in HR on pay-roll and recruitment
• Entrepreneur HR Manager

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Introducing HR of the future

• Competence management as a solution
• HR of the future
• Taking into account
• War for talents
• Knowledge management
• Training and development

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Competence management

• Bridges the gap between the mission statement and
  the strategy of the organisation on the one hand
  and the necessary competences to be able to
  exercise a certain job.
• The success of employees is largely determined by
  their competences (not only by their IQ,
  education or personality traits).
• Technical, social and personal competences are
  the key for their success within your company.

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UNIZO-viewpoint on competence management
What do we have to do?
Are we doing it right?
competences
job- descriptions
mission statement
organisations structure
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Advantages - employer

• Being able to assess the value of an employee and
  use them in the best way to attain the company
  goals. Evaluate employees on the basis of
  competences and motivating them.
• Better recruitment and hiring. Through better
  view on necessary knowledge, competences and
  attitudes.
• Being able to fill vacancies off hard to find
  profiles.

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Advantages - employee

• Career management
• Objectified evaluation
• Better informed and structured feedback

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Conditions to start

• Clear goals on long and short term with a
  strategy behind them.
• Actions to achieve these goals
• Being prepared to invest in training and
  development of employees
• Be prepared to if necessary reorganize certain
  processes.

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Starting-point

• Mission statement
• WHO ARE WE
• WHERE ARE WE GOING
• WHAT DO WE STAND FOR
• Values

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4 elements

• Why goal
• Beliefs values
• Position and competences strategy
• Policy and behaviour code of conduct

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Specific

• Where are we going?
• Ambitions, desired situation on long term
• Ideal image of future
• Different perspectives economic, social
  society
• What do we want to reach?
• Desired and measurable result with timing
• Direction

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Why a Mission statement

• Companies whose employees understand the mission
  and goals enjoy 29 greater return than other
  firms
• Reflecting on the company
• Creates identity
• Creates a sense of direction
• Basis of rules of conduct
• Inspire people/employees
• Internal and external use

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Strategy of the organisation
Structures, systems, modus operandi
Recruitment Selection
Training
Assessment
Coaching
Rewards
Career- management
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(No Transcript)
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2. Profile of function
Content of function Specific name of the
function General description of the
tasks Responsibilities and sub-tasks
Framework Position in the organisation Timesheet
Wages and classification Working
conditions Requirements for the job
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2. Profile of function
Analysis of sources
Draft
Test-group (review)
Validation by employees
Implementation
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3.a Competence profiles

• Divide competences
• Competence library
• Allocate competences

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3.b Competence profiles

• Define crucial and important competences
• Definitions
• Subgroups
• Reduce
• Expected behaviour (SMART)

Step 1
Step 2
Step 3
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3.c Competence profiles
GROUP
METHODS

• Mission statement
• Management

General competences

• Interview employee
• Internal external
• sources

Technical Competences

• Expected behaviour
• Differential analysis

Behavioural Competences
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4. Culture

• Effect of company culture on implementation

It doesnt matter how fast you run if you are
running in the wrong direction.
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5. Recruiting in a new way

• STAR
• Situation (own experience from past)
• Tasks (responsibility)
• Action (used method)
• Result (success, learning result)

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• Hiring people is one thing,
• keeping them is another.

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Motivators
Bron SDWorx
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6. Competence development

• Training
• Coaching

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7. Communication and participation

• Sense of urgency
• Make sure you have a vision, a story
• Make a plan
• Look at changes in the past
• Involve people
• Communicate and inform
• Create a broad basis within the organisation
• Get rid of obstacles
• Consolidate successes in the system

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The potential beneficial effects of the use of
checklists in order to improve Human Resource
Management in the SME and craft sector
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Professionalize

• Step by step
• Aspects which are needed
• No structural change

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Contents

• HOW DO I CHOOSE THE MOST SUITABLE EMPLOYEE FOR MY
  COMPANY?
• SELF-TEST LIST A GOOD INDUCTION MEANS A GOOD
  START
• A SYSTEMATIC APPROACH TO IN-SERVICE TRAINING
• CREATING FLEXIBILITY IN YOUR COMPANY
• TIPS FOR WORKING WITH OLDER EMPLOYEES IN YOUR SME
• 10 TIPS FOR USING PAY TO MOTIVATE YOUR EMPLOYEES
• EMPLOYEES PERFORM BETTER IF THEY ARE MOTIVATED
• INTELLIGENT DELEGATION FOR BETTER RESULTS
• DEALING WITH ABSENTEEISM
• CONSULTATION IN THE SME

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HOW DO I CHOOSE THE MOST SUITABLE EMPLOYEE FOR MY
COMPANY?

• Do I really have a vacancy?
• Draw up a proper job description
• Do all requirements have to be met immediately?
• Interview testing

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SELF-TEST LIST A GOOD INDUCTION MEANS A GOOD
START

• A good induction increases the new employees
  motivation, sets the right tone from the start in
  terms of what is expected, creates a pleasant
  working atmosphere, and ensures that the new
  worker settles into your company as quickly as
  possible.
• Are you properly prepared for starting the
  induction on the new employees first day at
  work?
• Programme drawn up
• Documentation provided (see below)
• Supervision arranged for the whole day
• ...

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A SYSTEMATIC APPROACH TO IN-SERVICE TRAINING

• You must systematically monitor training
  requirements. There are four key moments at which
  to do this
• Strategic changes
• Recruitment or promotion of employees
• Problems and sticking points
• Requests from employees
• When is training necessary?
• How to prepare a training course properly?
• How can you increase the benefits of a training
  course?

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CREATING FLEXIBILITY IN YOUR COMPANY

• If flexibility is important to your business
  strategy, you need to try to work out your
  flexibility requirements and the market
  tendencies as far as possible before any specific
  need arises
• try to adopt structural measures to promote
  flexibility in your company
• Supply Chain Management
• Keep a close eye on labour regulations
• Bear in mind that there are certain limits to
  flexible working

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CREATING FLEXIBILITY IN YOUR COMPANY

• Extra hours
• Flexible working hours
• Part-time
• Shifts
• Temporary contracts
• Temporary lay-offs
• Outsourcing

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TIPS FOR WORKING WITH OLDER EMPLOYEES IN YOUR SME

• Age-aware human resources policy begins with the
  school-leavers first experience of work
• Make working a positive experience
• Encourage a sense of personal responsibility
• Work on involving your
• Develop a diversity policy that eliminates
  prejudice
• Some skills get better as you get older
• Loyalty and stability are additional plus-points
• Aim for a balanced mix of experience
• Not everyone gets older in the same way

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PAY POLICY IN THE SME

• The strategy and culture of your company
• Responding to developments on the job market
• Comply with the wage standard and the collective
  labour agreement
• How you remunerate your employees must meet the
  requirements with regard to taxes and social
  security.
• There is a fair pay scale for every job.
• offer the chance of financial advancement
• Your pay policy also needs to provide a solution
  for the difference in performance between
  employees

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PAY POLICY IN THE SME

• Any extra benefits you offer need to take into
  account the opportunities for tax relief and what
  the employees concerned really want
• Your pay policy needs to be transparent enough to
  help motivate your employees
• You need to explain to every employee the value
  of his or her salary, bonuses and benefits in a
  balanced and clear way

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EMPLOYEES PERFORM BETTER IF THEY ARE MOTIVATED

• What do I offer to my employees? What makes my
  company attractive to a potential applicant? Why
  does he or she want to work for me?
• What type of job do you most like doing? Why?
• What do you like most/least in your job?
• Do you have contact with customers or do you
  prefer internally-oriented activities?
• Do you like to take the initiative or do you
  prefer to help your colleagues in a more
  subordinate role?
• Do you find repetitive work boring?
• How independently would you like to work?
• Would you like more/less supervision in your
  job?
• What working relationships and situations do
  you like the most?
• In which department would you most like to
  work? (admin, production, accounts, etc.)
• How, in your opinion, could good performance be
  rewarded?

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EMPLOYEES PERFORM BETTER IF THEY ARE MOTIVATED

• 1. Reward good results and professionalism
• 2. Discourage unprofessional behaviour
• 3. Work out what an employee is looking for in
  his or her job
• 4. Make sure you know what is going on in your
  company
• 5. Work with targets and communicate these to
  your team
• 6. Increase the involvement of your employees
• 7. Work towards variable payment strategies
  (individual or group-based)
• 8. Play your role as manager

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SUCCESSFUL DELEGATION

• Create the right conditions for delegation.
• Your companys objectives have to be clearly and
  precisely formulated.
• They have to feel involved and ready to work with
  you to achieve these objectives.
• Specific expectations and results for each
  employee.
• You should opt for jobs which motivate your
  employees, require them to be flexible and
  encourage them to take responsibility themselves
  and to share their knowledge and experience. You
  need to have the right person in the right job
  and give employees sufficient freedom to make
  decisions. There should be no barrier between
  thinking and doing and everyone should have a
  broad range of duties.
• Its OK to make mistakes.

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SUCCESSFUL DELEGATION

• You can never delegate your final responsibility.
  Likewise, confidential matters, policy issues,
  things which have to be sorted out as a team or
  disciplinary matters cant be delegated.
• Your routine tasks might, however, prove
  interesting for an employee.
• Look, together with your employees, for
  interesting work.
• Make sure that you have a good picture of the
  capacities and wishes of your employees. Good
  ways of arriving at this are performance review
  interviews, as well as short, informal
  conversations.
• Choose tasks and assignments which motivate your
  employees, but which they are also capable of
  carrying out. These are the best sorts of things
  to delegate.

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SUCCESSFUL DELEGATION

• Compare the knowledge and skills required to
  carry out the task with the knowledge and skills
  that your employees have.
• Delegate at the right level. Take the experience
  and competencies of your employees into account.
• Dont just throw people in at the deep end. Do
  the work together. It may be that not everything
  will go well the first time, but this is to be
  expected. Provide a lot of supervision.
• Do the important things together, but let your
  employee do the rest alone. Be aware of when you
  need to step back.
• Employees will decide for themselves how much
  help they need. Let them decide the control
  moments.
• Make sure that your employees have everything
  they need to carry out the tasks as independently
  as possible.

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DEALING WITH ABSENTEEISM

• Individual factors
• Personal factors can play a role in absenteeism
  the physical and psychological condition of the
  person concerned, the private-life situation of
  your employees and their lifestyle outside work.
• Social factors
• Broad socio-economic trends also play a part in
  contributing to absence due to illness the fact
  that life and work are becoming ever more
  intense, the general value which our culture
  places on work and the developments in
  legislation and social security regulations.
• Company factors
• How work is organized also plays a major role.
  This means not just the working situation in
  which your employees are required to perform, but
  also how your company deals with health and
  absenteeism.
• As an employer you certainly dont bear sole
  responsibility for the health of your workers,
  but do have a considerable interest in doing what
  you can to prevent absence due to illness.

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DEALING WITH ABSENTEEISM

• Individual factors
• Personal factors can play a role in absenteeism
  the physical and psychological condition of the
  person concerned, the private-life situation of
  your employees and their lifestyle outside work.
• Social factors
• Broad socio-economic trends also play a part in
  contributing to absence due to illness the fact
  that life and work are becoming ever more
  intense, the general value which our culture
  places on work and the developments in
  legislation and social security regulations.
• Company factors
• How work is organized also plays a major role.
  This means not just the working situation in
  which your employees are required to perform, but
  also how your company deals with health and
  absenteeism.
• As an employer you certainly dont bear sole
  responsibility for the health of your workers,
  but do have a considerable interest in doing what
  you can to prevent absence due to illness.

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DEALING WITH ABSENTEEISM

• Short term versus long term
• Dont trivialize or underestimate the risks
• The most important causes of prolonged
  work-generated invalidity are accidents at work.
• Ergonomics and stress
• Attention to ergonomics in the workplace and
  identifying possible causes of work-related
  stress offer much more security for the health of
  your workers.
• Focusing on reintegration
• Employees who have been off sick for long periods
  of time, often find it very difficult to return
  to work. This means you should keep in contact
  with them during their sick leave and look,
  together with your employee, for the best way of
  easing him or her back into work. This can
  result in a shorter absence.

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CONSULTATION IN THE SME

• By consulting the workforce you show that you
  value how your people do their jobs.
• Consultation helps your employees communicate
  better with each other and with you.
• All employees like to be properly informed about
  company affairs.
• Through consultation, employees gain an insight
  into and an overall vision of what other people
  are doing, which in turn creates a greater mutual
  respect for each others work.
• Consultation fosters employee involvement, often
  referred to as ownership behaviour.

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CONSULTATION IN THE SME

• You can choose various channels through which to
  communicate
• Are your employees sufficiently aware of the
  business culture and values that you regard as
  important? Are these regularly repeated and
  explained? Are they regularly reminded of them?
• Do your employees have access to your companys
  results?
• Does everyone in the company know what is
  expected of him or her?
• Are your employees clear about how far they can
  participate in decision-making? On what issues
  can they offer advice and in which areas can they
  make decisions themselves? What areas do you
  reserve for rulings from above?
• Are your employees informed about or involved
  in major changes (important new customers, new
  products, the arrival of new employees, new
  machines or methods, etc.)?
• Do you know if everyone is satisfied with the
  communication approach in your company?

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CONSULTATION IN THE SME

• How to communicate. Points to bear in mind.
• Limit the consultation to a maximum of 1 hour per
  time.
• As far as possible, conduct specific consultation
  in groups of no more than 6 to 8. This leads to
  more involvement and provides a better chance for
  employee input.
• Some consultation items will come up over and
  over again
• Stress the importance of clarity (in agenda
  items, expectations, structure, follow-up,
  communication).
• All the points which the employees bring up
  deserve your attention.
• Ask a lot of questions.
• If employees come to you with problems, encourage
  them to find their own solutions. Dont operate
  with hidden agendas.
• If necessary, take a course on meeting
  techniques, communication or group dynamics.
• Provide a clear follow-up to the issues which the
  consultation meeting has raised
• Keep your employees continually informed and
  dont always wait for the next formal
  consultation meeting.
• Set a good example if you want your employees to
  listen to you, make a point of listening to them.