How to Create a Human Resources Plan

As a small business owner, you’ll frequently get caught up in the day-to-day work of running your business. Your HR requirements will shift down the priority list, perhaps not getting addressed at all. However, your people are your greatest asset, and not having an effective HR plan in place can cause costly issues.

Creating a human resources plan doesn’t have to be complicated. In fact, it’s something you could do in a matter of hours if you set aside distraction-free time. Doing so can also help you choose the right hris software for small business success! Here’s how to create a human resources plan for small businesses.

Revisit Your Business Plan

Before you do anything else, take a moment to revisit your business plan. Your human resources plan should strategically tie into your overall goals and mission statement. The people are how you implement the business plan to keep your company afloat.

Jot down some of the key points from your business plan for reference. What are your goals as a company? What do you value? Developing your human resources plan will require connecting those excerpts with how your employees can implement them. Reword these excerpts to formulate a mission statement for your human resources plan.

Who Do You Want Representing Your Business?

Your employees are often the face of your business. What are some key traits and characteristics that you’d like them to value and convey to your customers? For example, being outgoing and prioritizing customer service might be the top priority if you own a restaurant. Competence and attention to detail might be your most valuable traits if you own a bookkeeping business.

This is also the area where you’ll write recruitment qualifications. Do you require all of your applicants to have a degree in a certain field or a minimum amount of relevant experience? Would you accept a combination of the two?

Discuss  Hiring and Training Processes

Standardizing your hiring and training processes will streamline the onboarding process and ultimately save you time and money. Write a standard idea of what this process should look like. Where will jobs be posted? How long will they be posted for? Who is responsible for vetting candidates? Is there a measurement system in place for screening? Who will be conducting interviews and how many will there be?

By planning all of these steps, hiring will become a routine procedure. You will also enhance the candidate experience, starting their journey with your business off on the right foot.

Write Your Organizational Hierarchy

Having a clearly defined chain of command and organizational hierarchy will clarify who reports to whom, and what’s expected if an issue arises. It can also help employees understand when they can say no to a project, and when they’re being asked to do something by someone above them in the chain.

Your organizational structure will also give you a better idea of how things run from a high-level. As a result, you’ll be able to make improvements over time.

Employee Motivation and Perks

Take time to write about your promise to your people. What benefits will they receive when they work for you? What are the perks of employment with your organization? How will you, as the business owner, work to motivate your employees and encourage productivity?

This can be as detailed or as high-level as you wish. This section is also ideal for highlighting workplace communication expectations among coworkers.

Rules and Succession

Do you have steadfast rules in place regarding employment? Your policies can cover everything from vacation blackout dates to social media use. Having these written down allow you to communicate them effectively to your employees.

It’s also worth making a succession plan. Who is expected to cover if someone leaves? Who is in charge if you’re not around?

When it comes to business, failure to plan is a plan to fail. Take the time to put together a strong human resources plan will ensure your longevity and continuity as a small business.

Adam Hansen

Adam is a part time journalist, entrepreneur, investor and father.