The entrepreneurial segment is booming in the US, attracting thousands of newbies every year. After a slowdown amid the pandemic, the markets picked pace in 2022 and never looked back. As of 2023, the US witnessed a record-breaking 5.5 million new business applications.
The sheer number of employers and employees in the startup domain is impressive, but it does not make finding the best fit any easier. As an entrepreneur, you may struggle to build a team that drives your business toward success. Effective human resource management is vital for the success and sustainability of a business in the competitive market.
Unfortunately, most entrepreneurs fail to consider this aspect of operations when launching a startup. In this article, we will share the HR best practices to help new businesses start on the right note and thrive in a dynamic market.
Photo by Austin Distel on Unsplash
Begin with Strategic Workforce Planning
Forbes defines workforce planning as leveraging data to ensure that your workforce aligns with the needs, goals, and strategic plans of your business. However, according to a Gartner survey, only 33% of organizations have an effective workforce plan. It is even more challenging to implement for a new business owner who hardly knows anything about HR management.
Let us consider the example of the real estate segment to explain the concept. For new real estate ventures, workforce planning means forecasting staffing requirements according to project pipelines, market trends, and growth projections.
To make it simpler, you should understand the skill sets necessary for various roles to recruit, train, and retain talent effectively. You may consider outsourcing more complex functions such as alternative asset management rather than hiring in-house.
Working with seasoned asset management experts can bring a wealth of knowledge to a startup. Moreover, they offer diversity in real estate strategies, giving an extra advantage to new players. Business owners opting for such partnerships can focus on core growth initiatives rather than worrying about the day-to-day management of their properties.
Establish a Proper Recruitment and Selection Process
A 2023 survey by Gartner showed that recruiting was a priority for 46% of HR leaders, but 36% considered their sourcing strategies inadequate for finding the right skills for their organizations. Imagine doing all the hard work yet not getting the right employees on board for your startup. It translates into a loss of time and effort for your business.
You can overcome this apprehension by implementing a proper and effective recruitment and selection process that focuses on attracting candidates with the right skills, experience, and cultural fit. Use multiple channels for sourcing candidates to access a broader talent pool. Also, conduct thorough interviews, skills assessments, and references to fine-tune the process.
Invest in Continuous Training and Development
In a dynamic industry, continuous training and development for the workforce is a game-changer. You need to ensure they know about the evolving market trends, industry-specific regulations, and technologies to stay ahead of the curve. At the same time, learning and development give your business a competitive advantage as an employer.
Statistics show that 76% of employees are likely to stay with an organization that offers continuous training. Provide opportunities for skill enhancement, certifications, and professional development programs to enhance your team’s capabilities and foster engagement and retention. Go the extra mile by investing in leadership development to create leaders capable of driving long-term growth and sustainability.
Stay Compliant with Regulations
American employers need to follow more than 180 federal laws administered by the US Department of Labor (DOL). These regulations and mandates cover many workplace activities for 10 million workplaces and 150 million workers in the country. Compliance with labor laws and regulations is non-negotiable for new businesses. Additionally, you must follow the industry standards to maintain your reputation as an employer.
These include adhering to fair employment practices, ensuring proper classification of employees and contractors, and following occupational health and safety guidelines. Compliance keeps your business safe from legal risks and liabilities. Establish robust HR policies and procedures to ensure it in the first place. Also, conduct regular audits to uphold regulatory requirements as they evolve.
Promote a Positive Work Culture
Company culture goes a long way in determining employee engagement and job satisfaction. Data shows that a positive work culture is linked with 89% of highly engaged employees. Like all businesses, a new company should promote a positive work culture that prioritizes communication, collaboration, and teamwork.
A healthy culture encourages feedback and open dialog among employees and management. Additionally, it rewards employees for good work and helps the laggards with training and education. Further, you can implement recognition programs and team-building activities to boost morale and camaraderie.
In conclusion, new businesses must have a robust HR strategy in place to get a head start as an employer. Although you may want to focus on profitability and growth, overlooking this aspect can deprive you of the best talent. Investing in these actionable best practices can help you build a great team and retain it for the long haul.
Your blog is a testament to your dedication to your craft. Your commitment to excellence is evident in every aspect of your writing. Thank you for being such a positive influence in the online community.