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SMEs (small and medium-sized enterprises) often face unique challenges when it comes to managing and developing their workforce. Unlike larger organisations with dedicated HR departments and extensive resources, small businesses must often juggle multiple priorities while still ensuring that their employees feel valued, supported, and engaged. Do any of these HR challenges sound familiar to you?
If any of these resonate, you’re not alone. Many small businesses face similar struggles. The good news is that there are practical ways to overcome these challenges and prioritise professional development or employee training effectively. In this blog, we’ll explore three actionable steps to free up time, enhance employee engagement, and foster a culture of development within your SME.
The quality of your staff induction process can have a direct impact on employee engagement retention and overall satisfaction. Yet, in fast-growing SMEs, onboarding is often overlooked in favour of recruitment efforts. This is a critical mistake, as neglecting onboarding can lead to higher attrition rates and wasted investment in recruitment.
Consider one of our clients, a fast-growing international business that recruited 20% of its workforce within a year. With the HR team’s focus solely on recruitment, onboarding was inconsistent and rushed. This resulted in above-average turnover rates, causing additional strain on the business.
Research consistently shows that an employee’s first weeks in an organisation directly impact how long they stay. A well-structured induction process not only helps new hires feel welcomed but also ensures they understand their role, the company culture, and how they fit into the organisation’s goals. Here’s how you can improve your induction process:
By investing in a thorough and consistent induction process, you’ll set new employees up for success and reduce the likelihood of early turnover.
Many small business owners underestimate the professional development they can offer to help people achieve their career goals. They may assume that discussing career aspirations or professional growth is unnecessary because they cannot provide the same career paths as larger companies. However, the truth is that SMEs often provide far more varied and meaningful development experiences.
In a large organisation, an employee may have a narrowly defined role, such as managing a single social media channel. While they may gain expertise in that area, their broader skillset might remain underdeveloped. In contrast, employees in SMEs often wear multiple hats. For example, a marketing role in a small business might involve:
This diverse experience allows employees to develop a broad range of skills that are invaluable for their future careers. As an SME owner or manager, you can foster this development by:
Remember, development doesn’t always require a formal training budget. On-the-job learning, mentoring, and access to free or low-cost resources can be just as effective.
Talking to employees about their career aspirations is essential, even if you fear you can’t meet all their expectations. Many small business owners avoid these conversations because they worry about raising hopes they can’t fulfil. However, avoiding the topic entirely is a far greater mistake.
Career development and talent management aren’t just about promotions or salary increases. They’re about understanding what motivates your employees, recognising their potential, and helping them envision a future within (or beyond) your organisation. Here’s how you can approach these conversations effectively:
Having these conversations helps build trust and engagement. Employees are more likely to stay loyal to a company that invests in them and shows genuine interest in their future.
Even with the best intentions, small businesses often face barriers to implementing effective staff development initiatives. Here are some common challenges and tips to overcome them:
Investing in staff development isn’t just a “nice to have”- it’s a strategic priority that can drive long-term success for your business. Here’s why it matters:
If you’re a small business looking to streamline your HR processes and improve the way you support and develop your people then, Actus Software has a suite of software that can make your life easier. Our tools can help you:
By partnering with Actus, you can empower your managers, support your employees, and focus on growing your business.
Final Thoughts
Developing people is an essential but often overlooked aspect of running a successful small business. By focusing on induction, on-the-job learning, and career conversations, you can create a workplace where employees feel valued, motivated, and empowered to succeed. Overcoming the challenges of limited time and resources may require creativity and commitment, but the rewards- increased retention, performance, and growth- are well worth the effort.
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