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Why your SME needs HR support


HR the missing piece in your business puzzle

Having worked in a Small and Medium-sized Enterprise (SME) for many years, I know that resources are scarcer than in a larger corporate business. When the margins for your bottom line are so tight, focus needs to be on those areas of your business which optimise productivity and performance. Historically the HR function, with its emphasis on bureaucracy, seemed disconnected from the nuts and bolts of day-to-day business and didn’t seem to add to the all-important bottom line. Larger businesses may, at best, have viewed HR as a necessary evil to support the grim activities that HR is known for. While in many small businesses the function was, and in many instances still is, divided up into its core elements and carried out reactively, by staff members as secondary activities to their day jobs.


The HR sector, I’m relieved to say, has gone through considerable change, even in the twenty or so years I have worked within it. It is now more integrated into businesses with its strategy more tightly aligned with delivering organisational goals. Its emphasis is now more proactive in making sure the right people, are in the right place, at the right time, with the right skills to reinforce company growth and performance.


For SME’s, though size and resources are a challenge, moving away from the purely administrative elements and focusing on priority activities can advantage your business particularly in the following areas:


  • Recruitment and Talent Acquisition: HR can help SMEs find and attract the right talent, assisting in the recruitment process, from creating job descriptions, screening candidates and conducting interviews. A good HR professional can help in finding individuals who are the right fit for the company's culture and needs and advise on hiring strategies.

  • Employee Development and Training: HR can identify skills gaps and training needs within an organisation. They can then support initiatives and training programs that help employees grow within their roles to enhance their skills and knowledge. Training and development is not only key for business growth but is also vital for attracting and retaining talent within an organisation

  • Performance Management: HR can design and implement performance appraisal systems that help in assessing and improving employee performance, setting goals, providing feedback, and recognising achievements.

  • Benefits and Reward: HR professionals can help structure your organisations’ employee benefits to ensure your salary structures and compensation packages are competitive and fair. In today’s tight labour market, this is crucial in attracting and retaining talented employees.

  • Employee Relations and Engagement: Maintaining a positive work environment and managing employee relations is essential for SMEs. HR can mediate conflicts, provide support, and implement engagement strategies that boost morale and productivity.

  • Change Management: During periods of growth, downsizing, or restructuring, HR professionals can guide the organisation through the changes, ensuring smooth transitions, good communications and minimizing disruption.

  • Compliance and Legal Regulations: HR ensures that the company adheres to employment law and compliance requirements. Staying updated on legislation and ensuring the company's policies align with these laws is essential to avoid potential litigation.

  • Creating and Implementing Policies: HR establishes company policies and procedures that comply with legislation and ensure consistency and fairness in the workplace.

  • Managing Workplace Diversity and Inclusion: In today’s society diversity and inclusion is recognised as being a key to a success. HR can create and implement strategies that foster diversity and inclusion in the workplace to ensure that companies benefits from a broad spectrum of backgrounds and experiences.

In essence, while you may have fewer employees, your SME needs HR support to create a conducive work environment which ensures that the company has the right people and practices in place to drive success, whilst managing legal and regulatory requirements.


Your SME might not have the funds or workload for a permanent HR resource and you may like to consider hiring an HR consultant. A consultant could add significant value to your organisation by providing the expertise and support listed above or reinforcing your existing HR team. HR consultants allow the business to focus on its core operations and often save SME’s money in the long run by streamlining processes and generating efficiencies. HR Consultants bring expertise and a broad understanding of industry best practices, providing valuable advice and strategies tailored to your SME's specific needs.


If you would like to discuss how HR can add more than it costs and how options for flexible HR support could work for your business please contact:
annette@hbhrs.co.uk or call us on 07748 713936
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