Posted in:HR Governance
Business Owners are an adaptable group of people full of ideas and dreams, which they turn into reality. It is an amazing feat to witness, because entrepreneurs are continually hit by unending crises, challenge, and demands along the way. Yet, only a handful succeed against all odds to rise and shine as industry leaders.
Many scientists, academics, and theorists have studied the factors of success. Collectively, they have produced huge volumes of knowledge. Yet, knowledge without action does not make a difference. We believe it takes a combination of planning, luck, and action to succeed. People must act and apply their knowledge to produce great outcomes. Hence, we would like to explore how a business owner can create success by embedding thoughtfulness into every facet of their business. In particular, we will focus our writing on sharing some ways that business leaders can empower themselves from the human resources perspective to pivot and adapt to changing environments.
First off, they must have the right structure. If your organizational framework does not allow you to respond to market fluctuations, then you have not achieved an optimal company structure. Fortunately, you can fix this problem by returning to the drawing board. If you end up with a static image, you are just repeating yourself. There is a real methodology behind building your company structure, so if you need help it is a good idea to ask. Oftentimes, a subject matter expert can see the gaping problems within your current company structure very quickly. Their ability to recognize your potential downfall can become a saving grace to change the course of your future and put you on the path of success.
Flexible Employment Agreements
Another area where we see business owners struggle focuses on the employment contract. Oftentimes, managers are more focused on filling job vacancies than thinking about how they will manage their employees after the hiring is completed. We regularly see poorly written contracts and outdated agreements. Your employment agreement should be the tool used to manage the employee-employer relationship, not a simple formality to complete during the hiring process. Do not hurt your future competitiveness by placing your business into overly restrictive and inflexible employment agreements. Take the time to ensure you have effective contracts that allow you to sustain your competitive advantage.
Intelligent Pay Plans
Further, we are also seeing many business owners being crippled with excessively expensive labour costs. The reason being, they did not take the time to design pay plans and programs that are intuitive and fiscally responsible. It may be time to take a very close look at employee compensation programs to redesign it for sustainable growth. There is much talk around connecting pay to performance, but it takes a lot of hard work to make that phenomenon a reality. There is also the risk of doing it wrong and eliciting unintended results, which could hurt your business. We would strongly encourage business owners to seek assistance from our subject matter experts before launching compensation redesign initiatives.
Effective Change Management
Lastly, we would like to mention that making the three changes above without effective change management can bring a lot of headache. There must be effective procedures to help you strengthen your business in a sensible way, so you are paying constant attention to your competitive position. Small iterative changes are much better than large abrupt changes that will shock your business ecosystem. We would encourage business owners to revisit their company culture and employee appetite for supporting business growth, internal communication channels, methods for leveraging the talent within their teams to effect positive change.
Overall, the ideas that we share here are not new or novel. There are many successful businesses that do follow the practices that are we highlighting. If your business is lagging, don’t worry. You have taken the first step to educate yourself. Continue learning by reaching out to our team for one-on-one attention to set you on a path of success.
Here to Help
If you need assistance figuring out what steps you need to take in order to propel your business forward, we can help. Our team can be reached for a free confidential consultation at +1-403-470-5350 or [email protected]
For further details on how Honiva can help you strengthen your company, please view our service offerings.