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Why your business needs HR Processes, systems, and rules?

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Jacqui Mann

Why your business needs HR Processes, systems, and rules?

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Why Your Business Needs HR Processes, Systems, and Rules

Many companies skirt over these essential processes and suffer as a result. You see, things such as your employment contracts, employee handbook, sickness and absence procedures, rules for taking holiday, grievance procedures etc. create the rules of the workplace. If you’re a creative, entrepreneurial business owner, then it won’t surprise me if you find these foundations a little restrictive – even frustrating.

Fit for Purpose

In any business, HR processes and procedures must be up-to-date, fit for purpose and set up to give you the business owner the flexibility to do what’s best for the company. The clue here is in the fit for purpose. Processes and rules create unified standards that ensure all employees are treated fairly more importantly everyone understands what they need to do to ensure consistency.

Many business owners wrongly believe their employees know what to do and what’s expected of them. A lack of processes, systems or procedures leads to inconsistency – in behaviour, performance, discipline, and results. When staff is seen to ‘get away with it’, resentment builds, which slowly kills morale and encourages poor performance.

I’ve worked with so many owners who complain about employees who don’t do things the way they want them done, maybe you can start to see why now.

When I go into the business to help cure their people disease I discover nothing is written down, it’s all in the owners head. I tell the owner that employees are not telepathic. How do they expect them to know what to do, they can’t read your mind.

If you mention HR to most owners they think of policies, procedures, employment law and lots of red tape. Ok, I admit there is some of that but there is so much more to HR than the majority of people realise.

Strategic Growth

HR is about developing people and working with the business from a strategic perspective to support growth. Business owners will need more HR expertise to support workplace culture in the future. Many business owners believe that by having policies in place it will stop them doing the things in their business that they want to do. That’s not true. Policies and procedures need to be designed around the company and the ‘rules’ should be in line with the company culture and values.

Download our guide ‘ Are Your Employment Contracts Legal?’

Madness

I meet many business owners who don’t have employment contracts in place for their staff and they have been in business for over ten years. This is madness. Why? Because you are not protecting your business, your employment contract can contain clauses that will give your business protection. Not only that, it makes it very clear from the beginning to both parties as to what the expectations are. The number of times I have had to resolve issues for owners when the relationship has gone wrong. It can become very costly. So much of it could have been prevented if the foundations had been right at the beginning.

I don’t want to get into too much legal stuff so let’s look at it this way. When everything is going well at the beginning of the employment relationship it’s great, but when the relationship turns sour that’s when you wish you’d paid more attention to the really boring stuff, like the employment contract.

I hear many business owners say they don’t like having rules, people can make their own decisions. Everyone knows what’s expected of them around here. It’s that telepathy thing again. I have news for you; they don’t know what’s expected. It may surprise you but the majority of people like to have rules. They like to know what they can and can’t do. It’s also good for your culture as any new employees understand very quickly ‘how things are done around here’.

Expectations and Consequences

A workplace with rules has defined boundaries, expectations, and consequences. Underpinned by the core values the HR processes and systems, help support the business and make it a great place to work. That’s why you need to get these foundations in place before you can begin to implement the P.E.O.P.L.E.™ System itself.

Does your employment contract protect your business? Find out now. Download our guide ‘ Are Your Employment Contracts Legal?’

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