10 Challenges When Managing HR in SME Business

Often when chatting with fellow SME and startup owners, Mebiso.com gets a tip about how they are having trouble managing staffing issues. Starting from those who have difficulty finding employees to being confused about how much salary should be paid. This is understandable because SMEs usually only focus on sales and marketing activities to maintain their business. So, according to them, staffing issues can be ‘thought of later’. In fact, anyone can learn HRD functions from an early age to avoid exploding staffing problems in the background. Anything? Here’s a little overview of the 10 challenges of managing HR that you will face. Thus you are ready with all the risks and solutions that can be taken to overcome them. Let’s see.

1. Difficulties in the recruitment process

Like new players, they usually lack experience. This is usually a separate obstacle for SMEs. They have difficulty determining the standard of the recruitment process. As a result, they immediately imitate a number of recruitment processes from other companies which are not at all appropriate if applied to their business.

2. Setting the rules

From the beginning there were no regulations, sometimes it became a burden when it was socialized. Especially if the new rules were formed at a later date. It will feel very stiff and inflexible. Business owners sometimes cannot determine what points must be regulated, besides that there is also a fear that employees will slack off with company regulations.

3. Aim for the same goal

Employees with a mental origin of work will not produce engagement which is good for the company. While the mental origin of work itself is not entirely the fault of the employee. It could be because the business owner is not communicating his vision and mission. Directing employees according to our goals is also not an easy thing, it is necessary brainstorm intense so that they unite with us. Ability leadership This is what is usually not honed by SMEs, so that it gives a less charismatic impression.

4. Develop employee competencies

Very few business owners understand exactly where the potential of their employees is. It could be due to lack of communication or areas that are not suitable so that the potential of employees does not just appear. We will not get the maximum potential from our employees, because they tend not to feel any level of skill when working with you.

5. Assessing employee performance

It is true the statement that employee performance will increase when we provide motivation. However, if we do not carry out monitoring and correction, then this good performance will not last long. Humanly, everyone will make it easy what they do because they feel there is no correction. This is what business owners often miss. It could be due to time constraints so that there is no time that can be allocated to check one by one the work of employees.

6. Determine reward & punishment

Humans are always triggered by 2 things, namely Pain and Gain. There is a maximum performance if given a prize, but there is also a more maximum if overshadowed by a fine. You should know this type of staff first. So to maximize it you can use the system rewards and punishment. However, business owners sometimes have difficulty determining what kind of reward is appropriate and what punishment can be a deterrent. For that, just try to make a mutual agreement.

7. Overcoming financial limitations

Every company really wants to be able to carry out HRD functions in accordance with applicable laws. It’s simple in terms of payroll. Surely you want to give at least according to the UMK. However, the existence of financial limitations makes this sometimes an obstacle until finally forced to minimize the number of employees to balance the financial flow of the business.

8. Dealing with employee demands

Every employee must have a different mindset, need, or desire. There are times when they demand procurement or changes to something from the owner and as a result, many SME owners have difficulty dealing with this wisely. Good communication is needed to deal with things like this.

9. Retain employees

The challenge also faced in large companies is retaining employees. The weight again if in SMEs is number of leads replacements are not easy to find. For this reason, ways to retain employees are also a challenge. The easiest thing you can do to make your employees feel at home in your company is to respect and create a positive office culture fun.

10. Lay off employees

It is very difficult to get rid of the feeling of being reluctant to lay off employees, especially to employees who may be close to us. However, if the performance does not match our expectations, what can we do? The company definitely wants to move forward. So if laying off employees is the only way, your assertiveness must play a role.

“HRD seems unimportant, but its function must exist”,

Mr. Made Gunartha, Human Resources Management Mentor

It doesn’t mean you have to have a special HRD employee. However, it’s more functional. Which means that SMEs must be able to equip themselves with various HRD functions, such as consulting mediators, developing employees, and selecting employees. Thus, later if you already have at least 1 employee, you can transition your workload easily and on target.