HR practices need to adapt to suit small businesses, research shows
Human Resource (HR) practices can increase development and growth in small firms but the way in which they operate are often different to larger firms, new research shows.
There is growing evidence that HR practices can be effective in small businesses, which typically lack internal specialist HR support. However, little is known about how this best functions.
New research by experts at Manchester Metropolitan University analysed findings from the People Skills programme - a Chartered Institute of Personnel and Development (CIPD) project that offered free external HR support to small firms - to find out what type of HR practises existed and how they operated. The study was published in the Human Resource Management Journal.
Researchers at the University’s Decent Work and Productivity Research Centre used the findings to create a new HR model designed specifically for small firms and to inform policy makers.
The model focuses on the importance of both external HR support and owner managers in the implementation of HR practice.
Carol Atkinson, Professor of Human Resource Management at Manchester Metropolitan University, said: “Many small firms access external support services to assist their business, but these support services typically emphasise finance and marketing above other aspects of business function.
“Relatively little is known about how small firms obtain HR support, yet people management is a vital aspect of business operations, particularly for small firms who are highly dependent on their workforce.
“We have found that the way HR operates in small firms is very different to those of large firms and support services and policy makers need to consider these before offering advice.”
Current HR models and policies have a wholly internal focus, targeted at progressive HR practices rather than routine practices. However, researchers say that these routine practices can have a much bigger and more important effect on small businesses, while providing a platform for a more progressive approach later down the line.
The study found that in small firms, most owner managers wanted the outcome of any HR interventions to create a good place to work and was seen by them as being as important than the introduction of any formal HR practices.
Researchers say policy makers should consider implementing support that that is designed to support both routine and progressive HR practice.
Prof Atkinson added: “We all deserve to work in an organisation where we feel safe, have equal opportunities and chances to develop. It’s important that small firms understand the type of support they need and where to find it.
“Through our research we aim to shape a bright future for the world of work by engaging with and working alongside organisations and policymakers.”
The University’s Centre for Enterprise hosts a number of programmes aimed at supporting small businesses, local economies and student entrepreneurship.
