A small to Medium Enterprise (SME) is one that maintains revenue, assets, or a number of employees below a particular threshold. Each country has different requirements and definitions of what constitutes an SME. While Human Resource- (HR) related issues can seem trivial at first, ignoring them and putting off efforts can be expensive and increasingly troublesome in the long run. HR is pertinent in the way any business is run regardless of size and can turn into huge pain-points if left without solutions. With that being said, we identified the top three common challenges faced by SMEs, and methods to remedy these.
- Inadequate Document Organisation
Documentation is important, regardless of the size of a business. However, many SMEs tend to overlook the documentation processes necessary for running a business. This includes necessary payroll and business reports, tax forms. Should these be kept in files in the office, thee documents can quickly become disorganised or even be lost. Employee documents such as contracts, company policies, claims and leave application forms also need to be properly and adequately documented. Besides confusion amongst employees. In extreme cases, these documents can also be easily stolen, thus deeply compromise the privacy and safety of your employees as well as the business as a whole. Furthermore, you may even be susceptible to legal problems should important employee policies not be clearly stated amongst employees.
Although tedious, proper documentation is no doubt important when it comes to running a business. Keeping documents online is an efficient way to ensure that necessary information such as company policies are easily accessible to employees. Furthermore, keeping track of reports online ensures higher data security as well as increased organisation of all work documents. JuzTalent’s functions enable you to organise such documents in an easy manner. While eProfile easily saves employee information, eLeave and eClaim can be used to document and keep track of all leaves and claims applied for by employees. Finally, ePayroll easily manages your taxes and gives you access to your own payroll reports. Online documentation enables you to plan, keep and organise all your documents, and have multiple at your fingertips. Moreover, online documentation using an appropriate platform ensures both your business and employee data are secure.
The benefits of a solid onboarding program are often overlooked by SMEs. This often leaves new employees feeling confused or disoriented. It may seem hard to spend time with the newcomers in your office without losing precious time in other core areas of your business. However, a good onboarding program can boost retention rates for a company. An onboarding program is essentially the first impression a new employee will get working at your organisation. In short, the onboarding experience an employee gets can make or break their decision to stay in an organisation long-term. According to a study done by Catalyst for Business, over 40% of new employees leave within a year if they are not properly onboarded.
It is important for SMEs to invest in a solid onboarding program. Ensure that new employees are integrating well and check in with them as needed. JuzTalent’s eProfile function allows for a more streamlined onboarding process. New employees have the autonomy to create and manage their own profiles. Furthermore, they can easily view the profiles of their colleagues to further familiarise themselves with the organisation, and the various roles involved in various tasks. While onboarding may seem like a small matter, it is crucial in keeping your retention rate consistent.
- Payroll Management
For SMEs, managing employee payroll and taxes can be a time-consuming and tedious process. Inaccuracies in payroll processing can and will frustrate employees and can permanently damage the trust they have in your organisation. Furthermore, there are many legislations that accompany tax contributions. Missing out on any of these will land your business in a lot of trouble. SMEs also generally have less resources than larger companies and as such, typically struggle more when dealing with fines and lawsuits. All of these can significantly damage an SME’s reputation, as well as put a large and unnecessary hole in their budget. Proper payroll reporting and tax filing are troublesome, but they are integral parts of a business’s functions and thus, should be handled with the utmost care.
SMEs must keep a proper record of their payroll reports, as well as stay updated on taxes and other legislations that may be in place. This can be a challenge, as these legislations are ever changing. As such, you might want to consider hiring a Payroll Outsourcing Manager (POM) or implementing a payroll software to help you stay compliant with laws and provide accuracy in payroll reports. JuzTalent’s ePayroll function allows you to do just that. It runs accurate, timely and compliant payroll for you, so that your employees can focus on the other core aspects of your business.
While SMEs face a multitude of HR-related challenges, these all thankfully have solutions to them. JuzTalent provides multiple solutions to a variety of HR-Related challenges faced by businesses, regardless of size. Everything from onboarding, to claims and payroll can all easily be managed and viewed under one platform. While HR may seem like a trivial matter to SMEs, they often can snowball into much larger problems in the future. HR Software like JuzTalent remedies these challenges for you, so that you can manage your employees and your business worry-free.