Human Resource Best Practices
According to the U.S. Small Business Administration, 50% of all small businesses fail within the first five years of operation. This result is troubling in that small businesses accounted for over 50% of the GDP in 2017 and were the major civilian employer. I found that there were several reasons for this high failure rate. A majority of the reasons were related to implementing Human Resource Best Practices.
There are many studies that indicate what Human Resource best practices are necessary for your business to succeed. These studies are mainly aimed at large businesses that have the financial capital to implement them. There was a consensus among researchers that SBEs have a lack of HR knowledge as well as limited budgets to implement Human Resource best practices.
To determine why some businesses fail and some succeed, I created a two-year study examining what HR best practices successful small and medium-sized businesses, those that made it past the five-year mark, implemented.
The results of the survey were surprising in many respects. The results indicated that successful small and medium-sized businesses surveyed did implement most of the recommended HR best practices; however, they did not fully implement all of the dimensions of those HR best practices. The implementation was also based on business size. Business size determined whether they implemented an HR department or HR manager.
I am compiling the results in a book and video course and will share many of the results on my website.
For more information visit the articles page Articles
For more HR articles visit SHRM