Rethinking HR for Small Businesses

Before I opened my own consulting practice in October, the organizations I worked for ranged from 800 employees to 7,000 employees. They all had HR departments with people that specialized in specific HR disciplines. We had plenty of policies and procedures. 

Now, I'm primarily working with organizations that have 300 or less employees, sometimes way less. When I'm talking to a person that built their business from the ground up, I mean like they worked for themselves and funded start-up costs with credit cards and family loans, they have a different orientation when it comes to watching their expenses. 

The small business owners I have worked with are hyper-focused on the practical reality of each situation. I've had to adjust the way I think about business and definitely rethink what "best practice" really means. In the world of big corporations, we often get caught up in the theoretical. We craft elaborate policies and procedures, imagining every possible scenario. But in small businesses, it's all about what works right now, today, with the limited resources at hand.

These entrepreneurs don't have time for a 20-page employee handbook that covers every conceivable situation. They need quick, actionable guidance that helps them solve immediate problems without breaking the bank.

I've learned that sometimes, the "best practice" is simply the practice that keeps the lights on and the employees paid. It's not always pretty, but it's effective.

This shift in perspective has been both challenging and refreshing. I've had to strip away layers of corporate thinking and get back to basics. What's the core issue here? What's the simplest solution that addresses the problem without creating new ones?

In big companies, messages often get distorted as they pass through layers of management. But in small businesses, the owner is usually right there in the thick of it. There's no room for miscommunication or misalignment. On one hand, decisions get made quickly and efficiently. On the other hand, there's less room for nuance and careful consideration. It's my job to help these business owners find the right balance. I've come to appreciate the creativity and resilience of these small business owners. They're not afraid to do whatever it takes to make their vision a reality. 

In many ways, this new chapter in my career feels like getting back to the roots of what HR is all about: helping businesses and their people thrive. It's not about following a predetermined playbook, but about adapting and evolving to meet the unique needs of each organization.

So while I may have left behind the world of comprehensive HR departments and elaborate policies, I've gained something invaluable: a renewed appreciation for the grit and determination it takes to build something from nothing. And that, my friends, is a lesson worth its weight in gold.