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HR Ideas: 16-20: Revenue Focus, MyPlan CEO’s, Hiring References, Hiring Skill, On-Job-Hiring

WISH YOU ALL A VERY HAPPY AND PROSPEROUS NEW YEAR 2013. We do hope that you take the advantage of Human Resources for betterment of your Business in 2013.

At Husys we all enjoyed growth of our clients in the year 2012 and look forward to grow more with positive energy. We want to contribute more this year to SME’s in India and across the globe.

16.  Build Revenue Focus: Market today is for the fittest. Survival linked to the performance on business revenue. It’s always a challenge to measure every function in revenue terms to stay fit.  However, it is possible with the SME’s due to the size and arm length distance that you can see the last mile Sale/Cost/wastage.  All SME business owners must develop an attitude to help their employees to measure themselves in relationship to Business Revenue. Also always bring the focus on what the money you receive from your customer is the money you to consider as sale.

Idea: Build the Sales & Collection Target for the Sales Teams and focus only on the collections as benchmark for evaluation of performance. For other Functions its always saving cost is adding value to profit.  Hence, make sure that you create budgets which are very demanding and ask the support systems to execute with care. You may look at certain percentage of cost to revenue be spent keeping your promise to all stakeholders. Support functions would include – HR, Finance, Administration, Logistics etc.,

17. MyPlan: We find many a times SME’s do not grow beyond their capacity due to the bandwidth of the CEO/Owner. This is primarily due to the fear of loss - we noticed that in SME’s anything beyond a point of disclosure about business to employees may take away with the concept/IP/knowhow. Hence, many activities revolve around the business owner for want of clarity / approval / advise. This makes the SME restrict their growth and also face stiff competition from outside and struggle to survive.  In many cases the CEO/Business owner becomes the victim of No Growth / Medical Issues / Family Issues as he/she would not have more time to think and grow their business.  You may hear comments like “If I reveal this my employee may run away with the formula/knowhow”. It is important that the mindset is changed if one plans to grow.

Idea : Remember, If someone is willing to take your knowhow and start they would start in any case.  In such cases your business can never grow and would fail eventually. Developing your next levels and sharing the growth is the best answer.  When an employee sees a growth why should he/she go and start their own. Also not every startup that way is successful and they fail 99.99 times by going through the same thinking syndrome. You need to build an aggressive plan for growth and help them to achieve more by being with you. Business sustenance is all about generating wealth around in today’s market.

18. Recruitment by Reference: This is one of the most commonly used sources of recruitment in Indian SME’s.  The reason always seems to be that it’s cheaper and they do not need to shell out money on Hiring cost. We have noticed in many cases by over doing this has impacted business from growing in SME segment.   It’s also noticed that 80% of company sometimes came through one reference before even one realizes.  

Idea: Any over doing is not good. Either food for body or for Reference as Business practices. Please create some basic guidelines for such hiring internally (viz. hiring only one/two employee from one employee in the same location or not more than 30% of hiring happens from internal reference). Also another point of view is to reward for the recruitment on long-term basis for eg: pay no/lower reward when the reference Is hired. But, pay additionally if that employee contribution is more to business in long-term.

19. Hire the Skill: SME’s have the best advantage of not having stringent policies or procedures many times. However, we have noticed that there are standard habits during hiring. Some of the common approaches: Hiring the sales persons from the competitors or someone who sold the same products earlier. Want person only with specific background like the job/jobholder with in your system. We have noticed in many cases the CEO do not use his/her discretion in identifying the alternative skill to bring newness to the business. Also SMEs suffer from hiring the same kind of profile from other organizations and the employees hired comes and rubs the culture & approach of competitors/job handled.

Idea: Thinking alternative source and expertise but can execute the job requirement at hand effectively should be the goal. Here is an example: Pick a certain %age of sales persons from different product/service line/industry with excellent history. This would help challenge your assumptions of doing business or developing customers with newness in execution. Similarly, the application of this can be done in many areas of HR, Marketing, Operations etc., 

20. On-job Hiring: Today’s resources and businesses are so dynamic that hiring the right person is always a question even after so much of research gone in Hiring. Any best recruiter in the world would never say that this person fits well in this position with 100% accuracy. Especially at SME’s not many tools are available to measure the success of any candidate especially in case of fresh graduate/PG candidate.  However, hiring fresh talent is a business need to keep the cost lower and build one’s own cultural-centric teams for future growth.
Idea: It is evident that the fresh graduate/PG candidate is yet to prove on the job. Many a time’s most of the SME’s do not have practice of campus hiring. SMEs can adapt to a methodology of hiring where they give the new entrants from college a choice to work on 2-3 days on-job to measure the fitment.  This would require a preparation of common set of works to be assigned to the candidate before joining. This is the effort/investment that the candidate and organization need to put. Ideal if the college graduates work on project/internship before joining.  This would help as a Realistic Job Preview in many cases.

About Husys:

Husys - HR Function Management Company ( ) is striving to build HR Department for Start-up, Small and Medium businesses since 2002. Husys strive to help in managing to stream line the change that organizations go through during their growth phase. Husys addresses the key Human related issues to support organizational Growth. We integrate the Hiring, Inducting, Performance Measurement, Policies, Employee Bonding and Development. Reach for any support in HR Services / HR Outsourcing / HR Function Management / Customized HR Outsourcing in India.

We truly live our Vision: "Synergizing Human Potential for Business & Society".

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