8 minute read
Influencing small businesses
The power to shape opinions, drive change and establish great relationships is just as essential for HR professionals working with small-sized businesses as it is for large organisations. Editor Kathy Catton explores how HR consultants can leverage their influence to guide and empower these businesses.
Although no official definition exists of a small business in Aotearoa New Zealand, businesses with fewer than 20 employees have traditionally been used and referred to in some legislation.
According to Ministry of Business, Innovation & Employment, New Zealand’s small businesses comprise 97 per cent of the total businesses in Aotearoa New Zealand (2022). If we break that down further, that’s a little under 700,000 employees working in companies with fewer than 20 employees.
So how do we reach these people and ensure, from an HR perspective, they are contributing safely, ethically and wholesomely to their organisations? One of the core competencies to make a difference is influence.
At its core, influence is the ability to spark change or action in others by effectively communicating ideas, inspiring confidence and establishing credibility. When applied to HR consultants working in the small-business space, this means supporting businesses towards achieving their goals, fostering growth and optimising their workforce.
Credibility Is The First Step
Small businesses want practical, inexpensive ways to reach their goals. So, for HR matters, they don’t need working parties and committees. They need quick, accurate and timely advice.
Mike Johnson, Director at Essential HR, based in Canterbury, has been working to provide HR advice and guidance to small businesses since 2006, and understands the unique environment of managing people in small businesses.
“Mostly, small business owners need guidance as to when they need you – and mostly they think they can manage more than they can, because they don’t know what they don’t know,” says Mike. “I long to get involved in their strategic planning, but usually they do this at home. So I try and get them to bounce ideas off me before they say anything – once a manager has told an employee they are going to disestablish a role, it is very difficult to create a fair consultative process!”
It’s essential that HR professionals demonstrate expertise in all aspects of HR management. Staying up to date with industry trends and understanding legislation, regulations and best practices are vital for the toolkit. Supporting small businesses from an HR perspective makes it a truly generalist role.
“A crucial way to show your influence is to develop a deep understanding of the unique challenges faced by each small business. Actively listening and engaging with clients, asking thoughtful questions, explaining how it relates to the way they run their business and providing transparent and accurate information (like legal references) will help build trust and credibility over time,” says Mike.
Tailored Communication
Effective communication is one of the essential skills for influencing any client and stakeholder. As an HR consultant, your ability to articulate ideas, goals and strategies clearly and concisely will enhance your influence. Tailoring your communication style to the audience, whether directors or shop-floor staff, is crucial to effectively conveying your message.
“It’s a bit like writing a cover letter for your CV – you have to persuade them to consider what you want to say, so it’s got to be interesting!"
“Communicating with small business owners is hugely challenging because they are all so busy doing a range of different tasks,” says Mike. “You have to be concise and get the timing right. I try and communicate critical things in a short update with short, relevant examples of how action will help. But I still have to hope they make time to look at the update. It’s a bit like writing a cover letter for your CV – you have to persuade them to consider what you want to say, so it’s got to be interesting!”
One Size Does Not Fit All
Because every small business is unique in its operations, in the values of its owner and in the personal complexities of its few staff, advice and guidance need to be tailored. That means staying flexible and adaptable in your approach and considering the owner’s values and objectives (often not clarified in writing) alongside their budgetary constraints and resource limitations. “It’s primarily about helping business owners realise we are on their side,” says Mike. “Although we may not give the advice they want, any advice is given for their own protection and benefit in the long run.”
“I find I am often trying to get business owners to understand the benefits of working with their employee – often, the HR problems they identify turn out to be communication issues. When we can identify what the employer really needs and link it to the employee’s thinking we are halfway to resolution. I have had a series of issues where the employee has simply resigned once the situation was fully explained. No aggro, no PG and a quick process,” says Mike.
“I have had a series of issues where the employee has simply resigned once the situation was fully explained. No aggro, no PG and a quick process."
Agent Of Change
No more so is your influence required than when supporting businesses through periods of change, whether that be restructures, mergers or shifts in business strategy.
Auckland Business Chamber offers support to small businesses on all aspects of change. It provides a Members’ Lounge, where business owners can access templates, checklists and other resources. “All our resources are designed to streamline processes, as we know time is often of the essence with small businesses,” says Josh Beddell, Advocacy Officer at Auckland Business Chamber. “Often it’s about providing highquality support that is both timely and cost-effective, as legal assistance is not always financially viable.”
Recruiting And Performance Managing
Broadly speaking, recruitment and performance management are the two areas that take up most of an HR consultant’s time in small businesses. “You’d be amazed how often we receive distressed calls from business owners wanting to sack a staff member instantly,” says Mike. “Something has gone wrong, and they don’t have the time to run formal processes and the cost of two weeks’ pay can be significant. Issues are usually many and overlapping and take time to work through.”
Josh agrees, saying, “It’s often about emphasising with small business owners the importance of strategic hiring from the beginning, and helping them find the best-fit employees who align with their culture and values.”
By encouraging employers to invest in their own and their employees’ professional development, implementing performance management systems, and facilitating regular feedback and coaching sessions, HR professionals can foster a learning culture that drives organisational growth and leads to a more invested and motivated workforce.
Although working as an HR consultant in small businesses can be challenging, it also provides huge exposure to many diverse businesses. Great job satisfaction is had from seeing happy clients who have built a strong relationship with you and trust your advice. “I have a range of clients who say things like they just want to talk to me and are happy to pay,” says Mike. “It’s so easy to make a difference for others – and that motivates me more than I can say. Plus, I know that staff working for me have found the breadth of experience and learning in business that they have gained is enormous.”
Grow Your Role
Operating in a small business environment provides HR professionals with the opportunity to gain exposure to a range of domains of knowledge, as detailed in The Path, HRNZ’s new Capability Framework. As Jessica Yardley from Essential HR says, “I don’t think that I would have had even nearly as much exposure or transferable experience working for the last four years anywhere else!” with their culture and values.”
Check out the range of professional development courses available from HRNZ, as well as webinars and mentor opportunities provided. HRNZ also provides a Knowledge Hub (eLearning platform) based on the Capability Framework.
TOP TIPS TO INFLUENCE IN SMALL BUSINESSES
Build your credibility by building relationships and demonstrating your knowledge.
Upskill in all matters ER-related.
Get a good understanding of the business’s numbers, so you can influence from the point of data.
Share real-life examples with managers of how other companies have successfully dealt with similar issues.
Build trust through empathy and active listening.
Support and encourage the leader’s own development through coaching and other professional development.
Use your networks for your support and growth and to better serve your clients.
