Winston Churchill said, “He who fails to plan is planning to fail.” You can’t afford to not plan if you want your small business to survive and grow. Making your employees’ work rewarding is an effective way to motivate them to improve their performance. Addressing human resource needs in your strategic business plans can help your company succeed.
Compensation
Tying performance to compensation makes employees accountable and helps them feel responsible for the company’s success. An essential part of HR planning includes examining and evaluating employees’ performance, telling employees whether they met your expectations and developing a system for rewarding achievement so that high performers receive high rewards. Knowing how much the market pays and providing a competitive wage and benefit package boosts morale and helps employees understand how their contributions move the company toward achieving its strategic objectives.
Succession Planning
Ensuring a continuous flow of leadership talent is a core function of the human resource organization. Succession planning involves identifying potential leaders among the ranks and developing their skills so they can eventually replace today’s leaders. Using mentors to coach rising stars, providing them with the education and training they need to succeed and demonstrating management’s confidence in the new leaders can help them make the transition from operational or middle management positions to senior-level roles.
