Small, medium-sized, and growing companies often encounter unique human resources management (HRM) issues. Below are some common challenges faced by our clients and the strategies we implemented to address them:
1. Compliance with Laws and Regulations
Understanding Legal Requirements:
- Issue: Compliance with labor laws, tax regulations, and safety standards can be complex without a dedicated HR team.
- Example: A client was deducting a fixed amount from statutory benefits based on outdated practices. Another client was unaware of mandatory benefits like service incentive leave or paternity leave, leading to non-compliance and penalties.
- Solution: We informed the clients of the correct procedures, sorted out all reports, gathered necessary data, aligned with government offices, and resolved issues. We also created a compliance calendar to ensure timely submission of DOLE reports, such as the 13th month pay and termination report.
- Due Process: When a client wanted to terminate an employee immediately due to a single mistake, we emphasized the importance of due process, proper documentation, and communication before any termination.
2. Establishing and Documenting HR Policies and Procedures
- Issue: Developing comprehensive HR policies can be challenging, and relying on unwritten rules can create uncertainty and inconsistency.
- Solution: We established clear guidelines and policies, formalizing practices to ensure all employees understand expectations, reduce legal risks, and foster a fair and transparent work environment.
Documenting Policies:
- Issue: Overlooking the importance of documenting internal policies leads to confusion, inconsistency and legal risks, specially in the Philippines where due process is very important
- Solution: We created memo templates, and guidelines for their use; and rewrote policies to ensure everything is properly documented, promoting transparency, fairness, and consistency in handling various situations.
3. Recruitment and Retention
Finding the Right Talent:
- Issue: Smaller businesses may struggle to attract qualified candidates due to limited brand recognition and fewer resources.
- Challenges: Basic job posting platforms often result in a high volume of low-quality candidates, leading to a mismatch between job roles and employee skills or expectations. The urgency to fill positions quickly can result in hiring individuals without adequately checking their fit for the role.
- Solution: We help clients identify competency, personality, and attitude requirements, and provide advice on competitive salary rates and other recruitment strategies. We assist in articulating the employment brand to attract qualified candidates within the company’s resources.
Retaining Employees:
- Issue: Retaining employees can be difficult without proper systems and structures in place.
- Solution: We help clients run employee surveys to gauge morale and understand what is important to employees. Based on the findings, we recommend performance management systems, compensation and rewards structures, guidelines for salary structure and increases, and training and development programs.
- Engagement Activities: To build camaraderie and teamwork, we suggest activities such as daily huddles with team leaders, birthday celebrations, structured Christmas parties, summer outings, team-building exercises, and town halls to discuss company goals, achievements, and future sales/production targets.
Training and Development
Providing Adequate Training:
- Issue: Limited resources for employee training and development can hinder growth and performance.
- Solution: Implementing cost-effective training programs, leveraging online courses, and encouraging knowledge-sharing among employees can help bridge the gap. Partnering with industry experts for workshops or seminars can also enhance employee skills without significant financial investment.
Onboarding:
- Issue: Rushing the onboarding process can lead to missing requirements and unprepared employees.
- Solution: By implementing a structured onboarding process, we ensure smoother transitions and better-prepared employees. This includes checklists for required documents, orientation sessions, and initial training programs to integrate new hires smoothly.
5. Compensation and Benefits
Competitive Pay:
- Issue: Offering competitive salaries and benefits can be challenging with a limited budget.
- Solution: We assist clients in conducting informal salary surveys to offer competitive pay within their budget. We also advise on non-monetary benefits, such as flexible working hours, recognition programs, and career development opportunities, to attract and retain talent.
Benefits Management:
- Issue: Providing a comprehensive benefits package can be financially challenging.
- Solution: We provide clients with a range of benefit options and connect them with benefits providers (HMO, life insurance). This includes negotiating group rates for better coverage at lower costs and advising on voluntary benefits that employees can opt into.
6. Performance Management
Setting Clear Expectations:
- Issue: Defining and communicating performance expectations can be difficult without established HR systems.
- Solution: We provide templates and study role-specific KPIs to create a score sheet for easy assessment. This makes evaluations more meaningful, increases interaction, and positively impacts employee performance. We also encourage open discussions between employees and supervisors to build trust and improve workplace culture.
7. Managing Disputes
Conflict Resolution:
- Issue: Employee conflicts can escalate and remain unresolved without proper intervention.
- Solution: We conduct separate discussions with each party to assess issues and facilitate resolution according to company policy. We also created an HR email address where employees can ask questions and raise concerns. For clients without dedicated HR staff, we provide ongoing support and guidance to ensure conflicts are managed effectively.
HR Outsourcing Benefits:
- Issue: Some clients operate without dedicated HR staff, leading to gaps in HR management.
- Solution: Outsourcing HR functions to AOBS HR Outsourcing helps small businesses establish a solid foundation for growth and sustainability. This allows them to manage HR effectively, even on a limited budget, and achieve significant long-term benefits.
By addressing these HR challenges comprehensively, small and growing companies can create a more structured, supportive, and compliant work environment, leading to improved employee satisfaction and business success.
