For SMEs, outsourcing HR activities is the future | SupportBiz

Human Resources

For SMEs, outsourcing HR activities is the future

With over 40 years experience in the area of HR, management and operations, Ashok Grover, director of HR consultancy Skillscape, believes that outsourcing of HR activities is the way to go in the future.

Speaking with SupportBiz, Grover highlighted the trends in the HR industry and how the HR function is evolving among SMEs. Edited excerpts:

What is the status of HR best practices among India’s SMEs?

Unfortunately, in most cases, HR is becoming more of a fashion statement; people tend to ignore the actual utility of HR practices. It is very common to come across business managers, business heads and even entrepreneurs themselves having wrong the perception about HR policies. This is getting common in the SME domain.  Another observation in the SME space, which is tampering their business growth and growth of their brand as such, is their tendency to hire low cost manpower. SME entrepreneurs are not willing to invest in people.

But we cannot rule out the undercurrent as some SMEs are working towards this and making sincere efforts to establish effective HR strategies.

What should be the approach towards HR policies?

Apart from the supreme boss of the company, but respective business heads too have to be aware of the best practices in the HR space.

The main intention of HR policies must be on simplifying processes. Also, viable business sense has to be considered in the HR scenario. Clarity of information is very important in this area, if the entrepreneur is working with a small-team. In this case, he / she must have a basic knowledge of HR. Entrepreneurs can also look at outsourcing the HR activity.

Is the trend of outsourcing HR activities growing among SMEs?

This trend is the only solution to many problems related to the status of HR practices among SMEs. This trend is gradually picking up among Indian SMEs. But it is important to acknowledge that the future of HR activities lies in the outsourcing model only.

What are the must do’s for an entrepreneur with regards to HR?

Apart from proper monitoring and direct connect with employees, the entrepreneur must have to make sure that his employees are well aware of the fact that their company has well defined HR oriented policies.

Entrepreneurs in the SME segment typically have a engineering, sales or marketing background. Does this factor hamper the adoption of best quality HR practices?

Yes, this is often a challenge in most cases. According to me, whenever any engineer or other subject matter expert grows and become an entrepreneur, he or she must have to develop their skillset in the HR domain. The other way to deal with this problem is to outsource non-core activities. HR falls into a category where it can be outsourced to an external expert, who can manage the same for the company.