Small Business News | SME’s not taking HR planning seriously

According to HR Magazine, more than 50% of small and medium businesses are failing to take HR planning seriously. This is despite HR planning being identified as being one of the keys to business success.

Warwick Business School and Royal Mail conducted research in which HR planning was highlighted as one of the six principles that small and medium sized businesses must follow in order to succeed in today’s harsh economy. This study revealed that small firms with comprehensive plans for staff development and future employment were 35% more likely to increase profitability and secure longevity for their business. But the report also revealed that less than half of all small and medium-sized enterprises (47%) are currently undertaking effective HR planning. Small and medium businesses in Northern Ireland were considered the worst with only 31% of firms stating they addressed staff planning issues. On the other end of the scale, firms in the North West of England are the most likely to put staff growth are the centre of their business at 58%.  The other five principles highlighted in the study were:

·  Flexibility

·  Business process efficiency

·  Marketing

·  Growth ambition

·  Research and development

To read more about the study’s results, please visit the HR Magazine website.

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