Tom Thackray, Head of Enterprise Policy at the CBI - grow your business - employ the right people.
EMPLOYING THE RIGHT PEOPLE
In order for SMEs to grow and prosper it is essential that they are employing the right people.
In the UK at the moment we have a lot of businesses, a lot of business creation over the last five years or so, but a lot of those are just one-man band businesses.
So thinking about the challenges that they’re going to face as they grow and start to employ people is quite a salient topic at the moment.
I think the first thing is that there’s associated costs with employing people that go beyond their salary. There’s a lot of employment regulation that employers need to be aware of. If you’re thinking about employing people then you have to factor that in.
The second thing about employing people is just to be aware of the fact that the culture of a business changes when people join it. When you’re a very small business, you’re just three or four people, it’s very easy to build that culture because you have a relationship amongst all of the people there and you can get your ideas across as a business leader.
When you grow a bit bigger than that, sort of 30, 40 people, that becomes more tricky and you need to think about the type of people you’re recruiting who are going to uphold the culture you’re creating rather than cut against it.
And then finally when you’re a 100 person business it’s about getting the structures right and getting the HR team set up, getting your Board set up. They’re really going to make a difference in terms of keeping that culture alive and taking the business where you want it to go.
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