Ā
Ā
Ā
Ā
Ā
Ā
PART I
THE TRUTH ABOUT HUMAN RESOURCES
Ā
Chapter 1
Defining HR for Entrepreneurs
Ā
What is human resources?
In my twenty-five years of experience, most people Iāve encountered often define human resources as the āgatekeepersā of any company. I get it when people call us the gatekeepers; however, human resources is so much more than the ābad guyā in any organization.
Iāll tell you a little story about how my twenty-five-year journey began. Picture this: Memphis, 1984. It was my senior year in high school, and, as with all seniors, I was embarking upon a decision about which path I would take in college and in life. My hometown always held a college event called College-a-Rama, where all the tristate area schools would convene to share information about their respective schools with all the seniors who were attending. During my visit, I talked with several representatives, and I landed on a school called MTSU and their business degree program in office management with an emphasis on human resources. I was intrigued and eventually hooked. So, when one of my senior year teachers asked me what I wanted to do when I graduated, my seventeen-year-old self said with unknowing conviction, āIām going into human resources.ā At the time I didnāt know what human resources really was, but my understanding, and the thing that attracted me, was that it had something to do with helping people. That was the extent of my knowledge. Although that wasnāt far off the mark, it didnāt encompass all of what human resources is.
With all that said, allow me to formally define human resources, a.k.a. HR, a.k.a. human capital management, to set the stage for what you will read in this book. One of the most common questions is, what exactly is human resources? In laymanās terms, human resources are first and foremost the people that make up the workforce within your company or business sector. They are often referred to as human capital, although that relates more to the skillset and knowledge an individual has, as well as their economic growth. Other terms you probably have heard of describing human resources are people, talent, and manpower, just to name a few. A couple more modern terms would be calling your workforce either team members or associates. And, for all of us who have been in corporate America before, we think of human resources as a division in terms of its functions, like recruiting, hiring, firing, benefits, and training.
Human resources has been through its own evolution. The precursor to todayās HR used the word personnel for the functions they performed, which were described mostly as paying employees and managing the benefits they received. However, the evolution of human resources identified people as being the greatest asset and resource of a company, and now, instead of a company only paying and providing benefits to their workers, employees are hired, motivated, developed, and retained. HR is no longer like the days of old; it now has a seat at the table and is considered a strategic partner to decision makers.
Why is HR necessary for small businesses?
Many small business leaders wonder why human resources is even necessary. In my professional experience, I have often discovered that their view of human resources is a little too narrow. On many occasions when Iāve been asked what I do for a living and I share a little about my background, he or she always summarizes it as hiring, firing, and payroll. Trust me, itās so much more than that, as the above formal definition provided a glimpse of. Providing a little more insight into what HR does encompass helps to increase a small business ownerās viewpoint, and as a result heightens their understanding in how it can and will play a part in their ability to grow and expand over time.
Why should small businesses care?
A savvy small business leader takes risks every day. Itās just the cost of doing business. However, that cost can be much greater when there is no infrastructure in place, such as processes and systems to create a semblance of efficiency. Well, that describes in short why small businesses should care about human resources and all that establishes it. HR has a huge effect on the culture and environment in your workplace, setting the tone for how employees communicate with each other, settle disputes, and work with each other.
Some small businesses prefer to outsource various components of human resources, but there is no getting around it completely. Human resources management plays an integral part in how to appropriately direct people and develop a workplace culture and environment. When effectively implemented, your companyās overall direction, goal, and objectives become increasingly clearer.
The elements of human resources donāt just establish structure inside small businesses so that you are able to scale up; just as important is how it aids in the development of business culture. At the root of every successful business is a culture that was established from its beginning; this is why itās important to go a little deeper into what business culture looks like and how itās implemented, whether you are brand new or considered a more established business.
Ā
If youāve ever wondered what it takes to transition from an entrepreneur to a small business CEO mindset, HR Is Sexy! is the book for you. I cannot tell you the initial panic I felt trying to overcome my fear around building a team and systems that will be sustainable. Delmarās passion for the success of small businesses, for them to be competitively positioned in the marketplace, is evident. From the cold hard facts of the power of human resources to the implementation of its strategies, this passion shines through and through. As an up-and-coming entrepreneur, this book provided me with practical step-by-step guidance on developing more CEO-like characteristics while implementing employer best practices that contributed to my profitable business success. This book will be a game changer for you, too!
Ā
Dr. April J. Lisbon, CEO
Running Your Race Enterprises, LLC
www.advocacycoaching.com
Chapter 2
Determine Your Company Culture Early
What is business culture?
Business culture, your company personality, is the starting point every entrepreneur should build as their foundation. The culture you develop as a leader becomes the driving force behind how you operate your business long-term. Many times, entrepreneurs consider culture as something that is to be established after they have a team in place or after they are making a certain amount of profits, which is not true. It doesnāt matter how long youāve been in business, because culture is unique to every business. Whether your business is an offline or online operation, the core values you implement and how they communicate your culture are equally important.
You may ask, what is this talk about culture all about, and why is so much importance placed on it? Thatās simple; ask yourself, how do you want your business to be perceived amongst your team and in the marketplace? Also consider this: in a company with no definitive cultural values demonstrated through the efficiency of their operations, the way their team is treated, or the things customers say about the level of service received, the companyās reputation can and will suffer. Your reputation could potentially make or break what youāre building.
When businesses shy away from investing either time or money in their culture, the consequences can be detrimental to their ability to grow. To help make the concept of culture a little clearer, letās look at five ways you can begin to incorporate or tweak a culture that will attract the kinds of customers and team that you need and will create a work environment that thrives.
1. Be clear on your values. Companies have different values that they embrace and different ways to express them; these can include:
⢠Vision: This is a short description of what a company forecasts they will achieve or accomplish in the mid-term or long-term future. Itās intended to be a compass for the actions the company will take now and in the future. Example: Nikeās vision is āto bring inspiration and innovation to every athlete in the world.ā The company includes everybody in this statement; according to Nike founder Bill Bowerman, āIf you have a body, you are an athlete.ā (panmore.com/nike-inc-vision-statement-mission-statement)
⢠Mission: This is a short, written statement of your business goals and philosophies. It should describe your companyās key functions, the markets you operate in, and your competitive advantages. A mission defines what a company is and why it exists. A mission statement has three main componentsāthe companyās mission and vision, core values that drive workplace behaviors, and key goals and objectives. Example: Facebookās mission is to āgive people the power to build community and bring the world closer together.ā (www.facebook.com/pg/facebook/about)
⢠Core Values: Core values are simply the beliefs of an individual or an organization. These principles are vital in creating a work environment that your employees want to be in and where they can thrive; they help us to clearly see the difference between whatās right and wrong. Core values also help a company to determine if they are headed in the right direction to meet their short-term and long-term goals and objectives. Example: Core values can be defined by words such as dependability, reliability, loyalty, commitment, open-mindedness, consistency, honesty, efficiency, innovativeness, and creativity.
⢠Purpose: The statement of purpose for your small business defines your companyās core goals and purpose. Example: Whole Foods declares that āOur purpose is to nourish people and the p...