Small and medium-sized enterprises (SMEs) often face challenges in managing HR processes, often due to the lack of processes or insufficient HR resources. Optimizing HR functions is not just the privilege of large companies; SMEs should also focus on developing their HR processes to support business growth, improve employee well-being, and ensure employee engagement.

Developing the Recruitment Process

Recruitment is the cornerstone of HR functions, and it can significantly impact the success of SMEs. A well-organized recruitment process helps companies attract the right talent, ensuring they fit both the company culture and business needs.

• Clear recruitment processes: In SMEs, there may not always be a dedicated HR person, meaning that recruitment often falls on the entrepreneur or supervisors. To manage recruitment alongside other duties, clear procedures need to be in place. These procedures help streamline the recruitment process, ensuring the right candidates are found for the job. This is where ready-made process charts and guides for creating job advertisements, communicating with applicants, and conducting interviews come in handy.
• Communication and employer branding: Companies differentiate themselves by telling their story and showcasing what they offer to employees. Communication is key—transparent processes increase trust among applicants and improve the employer brand. A good recruitment system enables a transparent recruitment process and smooth communication with applicants. If a company doesn’t have its own recruitment system, many recruitment agencies offer lighter recruitment support, including renting a recruitment system to manage the process.

Employee Onboarding and Integration

Well-executed onboarding helps new employees quickly integrate into the company and adapt to the work environment. For SMEs, this process is particularly important, as each team member plays a crucial role in the company’s success. When recruitment is infrequent, onboarding can feel overwhelming if processes and documentation aren’t in place.

• Automating the onboarding process: Technology can be a huge help for companies of all sizes when it comes to onboarding. For example, electronic onboarding materials, document management, and task lists make the process smoother and ensure that all important aspects are covered. Many HR systems offer ready-made onboarding paths, with affordable monthly pricing for smaller businesses.
• Mentoring and support: Onboarding should not be limited to the first days or weeks. Mentoring and regular support from the team help employees develop and feel like part of the company.

Employee Well-being and Engagement

SMEs can gain a competitive edge by offering a good work environment and taking care of employee well-being. Employee engagement improves productivity and reduces turnover, which can be especially costly for small businesses.

• Flexible work arrangements: SMEs often have the opportunity to offer flexible work hours or remote work options, which can improve employee well-being and engagement. When planning work arrangements, it’s important to listen to employees’ opinions and needs to ensure the arrangements suit the workforce. One effective way to gather feedback is through anonymous employee surveys.
• Open feedback and development discussions: Smaller organizations have an easier time maintaining open communication with employees. Regular development discussions, focusing on goals, challenges, and career development, help keep employees motivated. Many HR agencies provide training on how to conduct development discussions and offer ready-made frameworks to guide the process.

Compensation and Rewarding

In companies of all sizes, it’s essential to find the right balance between competitive compensation and other rewarding methods. Rewarding isn’t just about money—it can also include recognition, gratitude, and opportunities for career development. While small businesses may have more limited resources, competitive compensation can still be achieved through benefits that complement the base salary.

• Offering additional benefits: SMEs can take advantage of benefits like training, career development, or extra time off to make employees feel valued. One popular benefit among employees is an additional vacation week on top of the statutory leave.

HR Management and HR Technologies

HR technologies designed for SMEs can help improve employee management and streamline processes. Simple tools are available for small businesses to support smooth HR functions.

• HR software and systems: Employee data management, work hour tracking, and performance monitoring can be handled digitally, freeing up time to focus on more critical areas. Many HR systems support supervisors by reminding them of employee birthdays, health checks, or development discussions, and often also serve as a communication channel. Many HR companies compare and assess HR systems for SMEs, leaving the company with the task of choosing the most suitable system. Assistance is also available for system implementation.
• Continuous Improvement: A well-built HR process is continuously evolving. SMEs have an advantage as they can quickly adjust their processes to meet market and employee needs.

HR processes is not just a cost, but an investment in the company’s future

Well-managed recruitment, onboarding, employee well-being, and rewards help improve employee engagement and support business growth. Leverage the agility and flexibility that SMEs are known for and build HR processes that support business goals.

Equally important HR processes for SMEs, not mentioned in this article, include occupational safety and health, legal obligations like GDPR, equality, offboarding, and warnings. If your company needs assistance with any of the above HR matters, feel free to contact us.

Seasons HR-Partner Service provides your company with expert support for managing and developing HR functions. Our HR Partner service is tailored to meet the specific needs of SMEs, covering all areas of HR operations from strategic planning to daily operational activities.

Anniina Saarni
Seasons HR Partner