Our motto at Acacia HR Solutions is that small businesses can do anything big businesses can do – they only have to know how to scale. Often, when I say that to people I get a nod in agreement. I’ve learned however, that nodding in agreement and believing are two very different things.
I spoke to a group of HR practitioners at the California HR conference last week. I had an inordinate amount of small business HR leaders in the room. I consider small business to be 250 employees or less. Most of these practitioners were HR Departments of One or leaders with only an admin or one other support person not solely dedicated to HR. One of the slides in the presentation talks about technology and how lack of technology for small business is no longer a valid excuse for not functioning like a business partner. While the small business market is still an under served market in the HR tech space, it’s so much better than it was even 10 years ago. With freemium and monthly subscription options, there is tech out there that even the smallest of budgets can afford.
Whenever I say this in this presentation, the questions immediately come back asking me for a list of resources. I push back and ask why they haven’t researched any of this themselves and the answer often remains the same.
We assumed there wasn’t anything out there we could afford.
This, and two other beliefs held by small businesses, hold leaders back from being able to serve the business in the way they should. The idea that small businesses can’t do the same things as big businesses is rubbish. They may not be able to do it as fast or at the same level, but that’s not the same as not doing it. Further, small businesses often don’t need to do things at the same level as big business because doing so would be overkill. A performance management system with 18 steps and triggers using artificial intelligence is just not necessary in a 72 person firm.
Small businesses get stuck because they believe there is nothing they can do until they get bigger. Until they have a larger budget. Until they have more resources. Let’s explore three beliefs based on this idea that hold small businesses back, starting with the one I already mentioned.
Lack of Budget Means No Technology/Resources
As mentioned, HR tech available to small businesses is growing. There are companies in nearly every category; payroll, ATS, HCM, documentation and more that either cater solely to small businesses or are lowering their minimum employee numbers allowing small businesses to buy at a much earlier stage. I will be doing an entire series or ebook (yet to be determined) on HR Tech for small businesses to be released around the time of the HR Technology conference (join our mailing list below to receive those posts before they go public).
The same is true for resources. I will often have HR leaders from a 150 employee business reach out and say, “we probably can’t afford your help, but I wanted to ask anyway” only find out that they can in fact, afford our services. Depending on need, and the fact that we work solely in this space, we can usually work within the budget available. There are resources like us available for small businesses that are affordable.
Because We Are Small, We Don’t Need X
In speaking to a potential client recently, I went over how our services provides small businesses a complete HR team. That is, working with us is like having a Chief Human Resources Officer, generalist and recruiter on your team. The CFO responded with, “but I don’t think we need all that.” When I explained how it works, he realized he did need all that and actually could afford it.
This way of thinking is the easiest to fall into. I do it myself with my own business. We’re small so I don’t need an ATS, I can just use spreadsheets. We’re small so we don’t need admin support, our (insert random employee here) can handle it.
The reality is being small doesn’t mean you don’t need certain infrastructure and support systems in place. And being small is definitely not a reason to delay building or growing the people side of the business.
Size is a Disadvantage Instead of an Advantage
I hear this one most when discussing recruiting challenges. “We are small so we can’t pay the most and our benefits aren’t that great so we have a hard time hiring.” If you think that your size is a disadvantage, it’s going to be. There are many candidates who want to work in a small business environment. Many who thrive on the chaos of a startup. If leaders focus on the advantages that small businesses offer instead of the negative, their recruiting and retention programs would change forever.
Again I’ll say and forever I’ll stand by the idea that small businesses, can in fact, do anything big businesses can do. I do have to preach to the choir a bit because I catch myself thinking some of these things myself. But I know when I think about what I can do with the budget and resources I have and that are available to me, I can make it happen.
And so can your business.