HR in SME
XASMB Small and Medium-Sized Business

Specifics of HR in SME, Lifecykle

Specifics of HRM in SME
1.Limited human resources
2.Simple procedures and processes
3.More commitment from owners
4.Flexibility and fast reactions
5.Lower specialisation
6.Importance of corporate culture and values
7.More personal interactions

1.The HR department is usually small or non-extistent, and management takes over the tasks.
2.HR processes are informal and poorly standardized.
3.Business owners are heavily involved in personnel decisions.
4.Businesses adapt quickly to changes and market needs.
5.Individual employees have more responsibilities and they often perform multiple different tasks
and roles.
6.Company culture and relationships are key to employee retention.
7.Communication is direct, personal and informal.

Employee lifecycle



1. Notice
uThis phase is the starting point.
u
uIt has two steps
1.Identifying the need for a new employee, e.g. due to…………………..
2.Human resource planning, which determines what knowledge, …………... are required for the role.

due to company growth, departure of an existing employee, the need to fill a new position.
Knowledge, skills and experiences

1. Notice
uEmployer branding = a long-term strategy for building a reputation as an attractive employer,
which is crucial for recruitment success.
u
uIt affects whether candidates will even learn about the company and be interested in the
advertised position.

This phase included employer branding.

Task 1
uWhat are the biggest advantages of SMEs in employer branding?
u

Personal contact, corporate culture and values, local approach, credibility

2. Recruiting
uIn this phase, the company actively tries to find and select a suitable candidate.
uIt has few steps:
uPosting the position and advertising.
uSearching for candidates.
uSelection process (interviews, tests, assessments).
u
uThe goal is to hire the candidate who best fits the requirements of the position and the company
culture.

HR employees have interviews and tests with candidates and they evaluates them.

3. Adaptation
uAfter hiring, it is crucial to engage the new employee in the company and the work.
uIt has these steps:
1.Onboarding – a formal introduction to the company, colleagues, culture and rules.
2.Training for the given position.
3.Providing feedback and support so that the employee becomes a full member of the team as quickly
as possible.

2. A new employee learns to do their job. He can undergo various training course.

Task 2
uWhat are the advantages of adapting a new employee in a small or medium-sized company?

Personal interaction, good company culture, good relationships between employees, faster feedback,

4. Retention
uThis is the longest phase in which an employee performs their job.
uThe goal is to retain a talented and motivated employee.
u
uThis phase includes:
uPerformance evaluation and career management.
uFair and competitive remuneration
uDevelopment (e.g. training and career growth).
uCreating a positive work culture.
uWhat next? ………………

Mental health support, balance between work and life, Careful employee selection, Monitoring
employee satisfaction

5. Termination
uThis phase occurs when an employee leaves the company.
u
uThis phase has steps:
1.The employee decides to leave (e.g. resignation) or is forced to leave (e.g. dismissal,
termination).
2.Administrative processing of the departure.
3.Exit interview to obtain feedback.
u

5. Termination
uAfter termination, the cycle returns to the Notice phase (gray arrow), as the termination of the
relationship usually creates a new need to find a replacement.
u
uThis cycle repeats itself and symbolizes the constant cycle of work with human resources in every
organization.

Outplacement
uOutplacement is a service paid for by an employer to help laid-off employees find a new job
quickly and successfully. SMEs often offer them:
uIndividual counseling
uSeminars and workshops
uJob search support
uPsychological support
u
uOn the other hand, outplacement also helps SMEs with positive review from a former employee.
u

Outplacement is related to termination

How to Build a High-Performing Team
uWhy is it crucial to have a good team in a company?
uIt's good for ……………
u
u
uVideo: How to Build a High-Performing Team
uhttps://www.youtube.com/watch?v=4BO42rTCZS8

productivity, quality, flexibility, commitment

uHaving a good team in a company is absolutely crucial for survival, growth and lasting success.
u
uThe video clearly shows that having one bad employee in a company can have a negative impact on
the entire business.
u
uThe key is not to keep bad employees in the company, but to develop and invest in a good team.

Assignment for the rest of the lesson:
uYou have a worksheet uploaded to the IS.
uFill it out and submit it to the IS folder.
uWe will check next hour.