Building A Business? Here’s Why You Need Entrepreneurial HR
When it comes to building a business, cutting edge but scalable is key. You want the best available but need it to be affordable. That’s why it’s smart to consider bringing on a very entrepreneurial Human Resources Department.
When an organization is having growing pains and needs human resources help, making a hire to check the HR box is often not the correct next step. To use an over-used cliché, – that’s not thinking outside of the box.
As an organization grows and gets to the point that management decides to hire a human resources person, they must realize that that solution is simply not scalable. Does the direct hiring of another employee fill the exact level of need? Is it too much? Too little? Or is it premature? Are you truly ready to commit to the obligations and stressors of a full-time hire (salary, benefits, training, etc.)?
Here’s what’s outside of the box when it comes to HR: flexibility and scalability. Entrepreneurial HR is flexible and scalable. And taking an entrepreneurial approach to HR is embracing FractionalHR™.
FractionalHR is an innovative, cost-effective option that replaces the need for hiring a costly full-time HR employee. You can align the services you need to your growth and budgets. Services are scalable and can go up or down as needed. Why is scalability so important? If your business is growing and you go the traditional route with a direct-hire, there are several common pitfalls. If you under hire, (i.e.: a part-time or entry-level generalist) you may not get the level of expertise you really need. Or if you overhire (i.e.: a seasoned HR director pro) that professional’s skills may not be fully utilized as your organization doesn’t need that level of skill yet. Building your HR department yourself as your level of need fluctuates can be challenging. FractionalHR is the ideal solution.
FractionalHR can also add support (as well as leading-edge HR expertise) to larger companies that have an established HR staff. It’s a great way to supply additional coverage or back up to your existing human resources functions as needed. This could include coverage during family or medical leave, work on special projects, etc. Again, the point here is that the services are scalable. By using FractionalHR, you can avoid having to hire additional employees before there is a consistent and sustainable level of need.
With Entrepreneurial or FractionalHR, you will have the flexibility to adjust your HR program as needed to handle changes in the size or structure of your business.
Entrepreneurial HR is very much in line with the Entrepreneurial Operating System® described in the book, Traction: Get a Grip on Your Business, By Gino Wickman. The author poses the question, “Do you have a grip on your business, or does your business have a grip on you?” FractionalHR can help you get a grip on your HR.
Small business owners have to take enough risks as it is; building a human resources department doesn’t have to be one of them. Work with seasoned professionals. Create a better employment environment. That’s what we do at ConnectedHR. Our elite team of smart, experienced HR consultants deliver scalable and cost-effective professional human resources services to help our clients on their journey toward becoming an outstanding place to work. Contact us to learn more.