Effectively Navigating Employee Management in SMEs

No matter how you look at it, managing employees is hard work. Whether you own a medium-sized business with 50 employees or a small business with fewer than 10 employees, it can be difficult to navigate day-to-day work. You already have a lot on your plate, and managing HR is on top of that.

Managing your SME's employees can be daunting or, worse, prevent you from driving business growth. You may even have concerns about expanding your business if it means hiring more employees. Where are you going to find the time to manage all of this? And what if you don't make it?

Well, if more than 31.7 million other small businesses have found a way to manage their employees, you can too! Let's take a look at everything you need to know about managing SME employees, from the legal jargon to the practical steps.

The legal requirements for the management of employees

If you are a US resident, the administrative process is quite simple:

• Setting up a payroll system
• Add employee benefits (e.g. workers' compensation or unemployment insurance)
• Follow government guidelines for hiring and firing employees

Sounds pretty simple in a list, doesn't it? The truth is that all of these administrative tasks can be quite frustrating for small businesses, especially as more and more employees are added. However, with practice - or with the help of technology - you can get better!

The benefits of HR for small businesses

More than 70% of small businesses manage HR themselves or through their employees, which drastically reduces their effectiveness in the workplace. That costs a whopping $18,800 per year and more than 13 hours per week. We're talking about opportunity costs!

So if you haven't outsourced your HR management to a professional yet, or if you don't plan on getting help, you might want to think again. There are many benefits to handling HR work with the help of assistants, even if you still want to handle day-to-day management yourself. Some of the key benefits are:

• Saving 676 hours of wasted time per year, giving you more time for other tasks.
• You attract high-caliber employees with the experience you need to expand your business.
• Avoid compliance issues that can cost thousands of dollars.
• Improving corporate culture and thereby increasing employee engagement.
• Creating lasting change that enables sustainable business growth.

Human resources isn’t just a “nice-to-have” element for your SME. It is absolutely essential to the success and longevity of your business!

Methods of managing people in a small company

Managing people is a vast field with thousands of unique methods, but we'll just focus on the management side of things. Below are some leadership methods you can use to manage employees in an SME:

• Autocratic

Employers manage everything directly and are the only decision makers. In other words, that's efficiency squared.

• Democratic

Everyone in the company has a say in how it is run. The implementation is lengthy, but the employees are happier.

• Laissez faire

They trust employees to do their jobs properly. No follow-up or checking is required! Sounds good, but watch out for loss of productivity and quality of work.

The leadership style you choose has a major impact on day-to-day employee management. Although there is no wrong or right, you should make sure your style meets the needs of your many employees.

Employee development in a small company - 4 pillars

We've talked a lot about leadership in a clinical sense, but what about leadership that promotes employee growth? The more employees grow, the better their performance and the more your business can thrive!

There are four main approaches that should be combined at some level:

1. Recognize their efforts. Make them feel appreciated by everyone!
2. Listen to the feedback. Use pulse surveys to collect key indicators.
3. Stay in touch with employees. Let them build deeper connections.
4. Lead with confidence. Equip yourself and other managers to achieve meaningful performance.

Remember: employee engagement is crucial! Whatever you do, always keep the needs of your employees in mind.

Small and medium-sized companies trust IceHrm

Practical action and a positive attitude can help you achieve a lot, but we also know that this will not magically solve your people management problems. You need something that will work as hard as you, especially when it comes to managing employees effectively. That's why we have a better solution: IceHrm!

Our incredible employee engagement software has been providing management solutions trusted by some of the world's best employers for more than a decade. We help employers connect with their employees and their everyday lives, increase employee retention, increase engagement and - even better - make your life easier!

Elevate your SME management with IceHrm's comprehensive solutions. Streamline HR tasks, boost engagement, and drive business growth effortlessly.