Small & Medium Enterprises in India
For a company to work effectively, it is crucial for the HR department to align the organizational goals and mission statements with best practices to address various issues that may come up in a business. According to a survey conducted by Confederation of Indian Industries, 20% of medium and 80% of small sized businesses have no HR departments.
For SME’s to ensure a long term success in the market, it is crucial to have systematic HR practices. Indian SME’s can always learn from the big players and address their HR challenges in order to ensure success. For them, the two most important challenging aspects are competent workforce and recruiting the right talent. People acquisition being more important than people retention for SME’s, it is crucial for them to focus on their Human Resource activities.
Systematic HR Practices
Many organizations in the market bring systematic HR practices into play. Some of these practices include, happy work environment, 360° feedback system, performance bonuses, reward ceremonies, knowledge sharing, open house discussions and open book management style. Additionally, opportunity to grow and freedom of decision making helps retain the key talent in the company.
Many organizations also introduce innovative programs to put HR practices in place and combat attrition. These programs sometimes include stress management, involving weight watchers to help night shift workers to adapt the shifts, flexibility to work from home etc. Companies even welcome suggestions from their employees for improvement, which is an innovative approach and Indian SME’s should focus on it.
In addition to the above mentioned points, organizations can also propose re-employment and retention of old workers as a part of their systematic HR practices. All these approaches can facilitate Indian SME’s to ensure success.