INSIGHTS

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Data Diving in SMEs: Small Data, Big Insights

Data Diving in SMEs: Small Data, Big Insights

In the vast ocean of BIG DATA, where giant companies swim with their armies of analysts uncovering quirky correlations (like jelly beans consumed versus rest breaks*), smaller businesses might feel like they’re paddling in the kiddie pool when it comes to people-data.

But let’s talk about the might of ‘Small Data’ in the world of SMEs.

Contrary to what many think, SMEs aren’t data deserts. In fact, many SME HR pros are data ninjas in their own right, using what they have to make smart decisions. They may not have flashy dashboards, but they’ve got the knack for spotting trends that spell either triumph or trouble.

You don’t need a data scientist’s hat to make the most of small data. It’s all about starting simple and focusing on what matters most to your business.

So here are some top metrics for SMEs to start Tracking:

  1. Time to Hire: Speed matters, but it’s not just about being fast. A swift hiring process could mean you’re a hot ticket employer.
  2. Quality of Hire: After six months, ask yourself, “Would I rehire this person?” It’s a simple yet telling metric.
  3. Recruitment Channels: Think of it like customer feedback. A high referral rate might feel great, but it could also hint at a diversity drought.
  4. Voluntary Turnover: If people are leaving in droves, it’s time to look at what’s influencing this by doing a bit of a deep dive on engagement.
  5. Involuntary Turnover: High numbers here could signal a mismatch in hiring or management skills.
  6. Performance Issues: These nuggets of insight can reveal a lot about skills and expectations within your team.
  7. Complaints (aka. Grievances): Track these from the get-go. They’re like canaries in the coal mine for engagement and management health.
  8. Time Spent on ‘Noise’: This underrated metric can show how much time is spent on people issues, reflecting the overall vibe in your business.
  9. Absence Rates: Use this carefully, as it’s most meaningful over a longer period. It’s a barometer for both obvious risks and subtle engagement issues.
  10. Costs and Customer Data: Blend these with the above, and voila! You’ve got a treasure trove of insights to boost productivity.

Remember, you don’t need to track everything under the sun. Just pick what resonates with your business, and soon you’ll see patterns and stories emerge that can guide your decisions.

Want to find out how you stack up? Contact us via hello@thehrhub.co.uk or call on 020 3951 1208

*About that jelly bean study… nope, never happened (but in the world of big data, stranger things have surfaced!).

Have you got the MAGIC touch?

Have you got the MAGIC touch?

Here at HRHub towers, we’ve long believed that great HR can scale your business and over the past few years we’ve worked with over 250 companies to do just that. So we have been working out how to distil our knowledge and experience down to share with others in an easy way.

Our MAGIC Scorecard will help you identify some key areas to focus on if you’re serious about your team’s success.

Everyone has the capacity to inject some MAGIC into their team and be on the road to success. So if you’re setting out your plans for next year try our new easy tool to help identify any gaps.

Whats your MAGIC Score?

Distilled from over 20 years plus experience of working with fast growth and successful businesses, we’ve summarised 5 key areas which will help boost a companies chance of success whilst growing:

  • Meaning: Everyone goes into business for a reason. What’s yours? And how does this comes across to your team? Your purpose, vision and values are all critical to how teams feel about their work. 
  • Accountability: Accountability leads to a strong culture of trust & engagement in business.  It’s therefore key that all team members are clear on ownership & responsibilities in order to achieve this.
  • Growth: No-one wants to stagnate & development is a core need we all share as human. Personal growth is a key  driver of motivation and engagement for team members, which will in turn help your business grow.
  • Inclusion: Having a strong culture of diversity, equality and inclusion is essential in any successful business. It creates a myriad of benefits, including increased creativity, happiness and (ultimately) greater revenues.
  • Care: Everyone wants to feel valued in life and showing care and interest in the wellbeing of your team ensures this as well as leading to a healthier, happier workforce.

This scorecard has been developed to quickly and painlessly produce a score based on your answers. In under 2 minutes you will generate results with tailored tips on how to create the MAGIC in your HR practices.

No gimmicks, no time-wasting, just some simple yes/no questions to set you off on your personal growth journey!

Drop us a line via hello@thehrhub.co.uk, give us a call on 0203 6277048 or pop in a diary meeting in here

HR Horrors: Are you forking out more than you should be on fraudulent expense claims?

HR Horrors: Are you forking out more than you should be on fraudulent expense claims?

4 in 10 respondents to a recent survey (by software company webexpenses) admitted that they had fiddled their expenses. This is maybe not a HUGE surprise to you,  however, shockingly the total sum of those amounts could relate to as much as £100 million a year lost from businesses across the UK.  

Many employees made little tweaks to their actual expense claims, some completely false but mainly it seems, exaggerated, with them citing travel as an area where they didn’t feel guilty elaborating on the truth (almost 50% of respondents said that they had claimed for more miles than they had actually travelled).

Surely a little bit doesn’t hurt right? Of course, the individual exaggerations may be relatively small – which is perhaps why 8 in 10 workers had never had their claims challenged or denied – but if you don’t watch it they can really stack up, and be a real cash drain for many businesses. Adam Reynolds, CEO at webexpenses, mentions that there had been a “shift to more subtle methods” that didn’t raise big causes for concern, and that the culture of fraudulent claims was changing.

So it is likely that you may have the same issue so with the new year approaching, now might be the time to do a bit of an update on your policy, make your expectations on expenses clear and do a bit of scare mongering to throw a bit of caution out there to those that may have been abusing the system slighty. After all, what’s the point in working furiously to achieve your revenue goals, when you’re wasting cash unnecessarily? Take a look below at our top tips for combatting fraudulent claims…

Create a robust policy so your employees know exactly what the process should look like

Do your members of staff really know what’s expected of them when it comes to claiming for expenses? Does your policy clearly state what they can claim for, and how they should do it? Are your current processes clear and well communicated, or are they vague and not really adhered to?

Creating a policy that’s fit for purpose is often the first step towards stamping out any future problems. Everyone from your staff to their line managers should be aware of how they should claim, and what they’ll be entitled to.

Conduct regular checks

The survey found that very few companies carried out adequate checks when claims were submitted. This inevitably means that mistakes are being made – sometimes, even because of genuine human error – and a culture of over claiming can be the norm.

You might decide to give line managers responsibility for carrying out checks at stipulated intervals, or do monthly checks on random claims.  What’s important is that there’s a process in place, and someone really owns it.

Keep things simple

Many companies have long winded expense-claiming provisions that are time consuming for everyone involved (seriously – do you need that many people signing things off??). Improving how you do things isn’t about adding in more hoops to jump through, or making things more complicated. It might even be the case that you need to go back to basics, and take out unnecessary steps in the process .

Use technology. This is definitely one of those areas where tech can definitely save you bucketloads of time. Requiring staff to keep track of receipts can turn into an administrative nightmare, and there are now tonnes of apps on the market that can make your life a load easier: many of our clients use FreeAgent, Xero and Concur to manage without the piles of paper receipts weighing down drawers everywhere…..

It’s important to recognise that many of your staff members will be making accurate expense claims, and are simply being suitably compensated for costs that they’ve genuinely incurred. It’s never wise to start throwing around accusations or making your staff feel like their honesty is being questioned. But in order to ensure that fraudulent expense claims don’t damage your business, get started with considering how you can implement these key points. 

TheHRhub is the ultimate online HR support service for Startups and SMEs – providing software, templates, expert advice, whitepapers and up to date news and views, straight to your mobile or tablet. It’s like having an HR director in your pocket but without the price tag!

Call us on 0203 627 7048 or drop us a line at hello@thehrhub.co.uk for a no-strings chat about your HR needs.

Image : Twenty20

HR helpdesk – Policies every SME should know

Everyone realises that you are meant to have some kind of ‘HR’ function, but when you are busy growing an sme, all the focus is on just that, so stepping back to write policies and procedures tends to get pushed to the bottom of the list.

Then you have a little freak out moment and realise your HR framework could make or break you. The information age gives everyone knowledge at their fingertips and if you haven’t thought about it, you can be sure your employees will be quick to point out their rights if anything goes awry.  In the early days this could be even more crucial as any hiccup in those early hiring stages could be enough to cause a financial hit you simply can’t take.

Luckily for you, we’re here to tell you which ones you need and which ones are considered best practice.

Writing policies and procedures can be a minefield in this day and age so where do you start? 

Legal requirements

Surprisingly there are only 3 policies you should provide that are required by law. They are:

  • Disciplinary and Dismissal Policy
  • Grievance Policy
  • Health and Safety Policy (needed by law if you employ over 5 employees)

Best practice

There are also a number of other policies that you should provide because they have legal minimum requirements – these are…..

Pay Legally you must pay your employees at least the National Minimum wage and ensure Equal Pay; you must also provide an itemised pay statement and not make any unauthorised deductions from employees pay
Equal Opportunities Legally you must not discriminate against staff or allow harassment and bullying and you must make reasonable adjustments for staff in the work-place if they are disabled
Working Hours and Overtime including rest-breaks and holidays Legally you must comply with Working Time Regulations provisions for employees and workers
Sickness policy and unauthorised/authorised absence  Legally you must make statutory sick pay payments to employees and allow them time off for dependant emergencies, Jury Service etc.
Maternity, Adoption, Paternity Leave, Parental Leave and Shared Parental leave You must make statutory maternity / adoption / paternity payments to employees and give the appropriate leave
Flexible Working You must consider all employees flexible working requests

Finally you may wish to consider additional policies to ensure consistency within your business, for example:

  • personal e-mail / internet usage
  • alcohol/drugs in the workplace
  • dress codes
  • data protection
  • Expenses
  • Smoking rules

There are no legal guidelines for these policies and they can be designed around the needs of your business (e.g, no smoking – including vaping – other than during lunch hour).  

You should only put policies in pace that are going to be used.  Having a policy just for the sake of it is pointless! Focus, keep it simple and write policies which are meaningful to your business. Then stand by them.

TheHRhub is the ultimate online HR support service for Startups and SMEs – providing software, templates, expert advice, white papers and up to date news and views, straight to your mobile or tablet. It’s like having an HR director in your pocket but without the price tag!

Call us on 0203 627 7048 or drop us a line at hello@thehrhub.co.uk for a no-strings chat about your HR needs.

Image : Pixabay

It’s no longer Sci Fi, the workplace really is going AI

Alexa and Siri have appeared in our homes, now the workplace looks set to embrace the world of artificial intelligence (AI).  With Apple making moves to build up its artificial intelligence talent this week, it’s safe to say that this is now very much on future business radars.  

Many have speculated that its increasing popularity and sophistication will replace human workers, and employees should be concerned. In fact, recent research from Bersin by Deloitte found that 33% of workers expect their jobs to be augmented by AI in the near future.

It surely does sound a bit far fetched but it’s certainly true that many businesses could benefit from considering how to better harness AI and use it to support and refine existing processes. But how exactly? And what will the future really look like?

Interestingly, it’s been suggested that AI could rid the recruitment process of human bias. It could screen the characteristics and qualifications of those who exceed in certain roles, and assess candidates through screening and selection activities. Choosing the right member of staff doesn’t get much more scientific than that, although on the flip side how often have you seen the perfect candidate on paper then realised they just wouldn’t fit in with your company culture.

AI could also allow leaders to be just that – leaders. When admin tasks are largely automated, it frees up time to focus on motivating a team of staff. So whilst many are worried about technology replacing people, it could be argued that it will allow individuals to really hone in on their soft skills and their ability to lead.

Of course, much of this is speculation. If one thing’s for sure though, it’s that we’re entering a new frontier in the world of work and employment, and opportunities and challenges will exist that we probably haven’t ever even considered before. According to The World Economic Forum 65% of children entering primary school today will ultimately end up working in new job types that don’t even exist yet.

Are you excited about what the future holds? And will you be looking at ways to automate more of your operations? 

theHRhub is the ultimate online HR support service for Startups and SMEs – providing software, templates, expert advice, whitepapers and up to date news and views, straight to your mobile or tablet. It’s like having an HR director in your pocket but without the price tag!

Call us on 0203 627 7048 or drop us a line at hello@thehrhub.co.uk for a no-strings chat about your HR needs.

Credit: Photo by Alex Knight on Unsplash

SMEs & HR Data – The Top Ten Metrics You Should Be Tracking

A lot has been written recently about BIG DATA. And I’m not surprised. It has revolutionized the way many companies approach decision-making regarding their people in the quest to improve their bottom line. But what about the data which comes out of businesses who don’t have an army of analysts sitting in their backrooms, frantically researching the important correlations between the amount of jelly beans consumed in a day versus time spent on ‘rest breaks’*? Those who don’t have the volume of data required for this activity, and/or can’t afford to hire the skill set to do this? What about small data?

While most SMEs don’t have the same abundance of people data as the Big Girls and Boys, that doesn’t mean that predictive analytics and deriving meaning from data is totally out of reach for them either. ‘Small Data’ can be useful too; it’s just a question of cutting your cloth accordingly.

The good news is that there are lots of HR experts in SMEs around the country who love gathering data and have been doing so on a small scale for years, using it to influence decision making and track what’s working and what’s not. Sure, they may not be able to create a dashboard which looks like Joseph’s Technicolour Dream Coat. But they sure as hell know what data signals things are about to go belly-up. The even better news is that this type of data and insight is accessible to all SMEs even without an in-house expert: just work with the data you have whilst you build it all up. And go back as far as you can to spot the trends.

Start simple. And think about the things you really care about.

After some debate within the team, these are our top ten HR baseline measurements for SMEs:

  1. Time to Hire: Not to be confused with cost-per-hire (a related but distant cousin in efficiency metrics). A low time to hire affords minimum business disruption and can indicate a strong employee brand.
  2. Quality of hire: There is no one standard metric here. Productivity, cultural fit and 360 view can all play a part. A very crude way to look at it is at the end of a 6 month period (no less), answer the question “Would you hire this person again?”.
  3. Recruitment channels: In the same way the ‘ultimate’ question for your customers is “would you recommend us to a friend?, the referral rate reveals the same from your internal customers – your staff. Too high and you risk having a diversity issue, but too low, and it can indicate your people just ain’t believing in you…
  4. Voluntary Turnover (they walk out of the door): High turnover can indicate a lack of engagement, leadership and/ or poor recruiting process.
  5. Involuntary Turnover (you push them out of the door): High figures here can indicate a lack of management skills and/ or poor recruiting process.
  6. Performance issues: I use the term ‘issues’ rather than disciplinaries, as often they never get to become a formal disciplinary case. Tracking these at management level can give incredible insight into skills and expectations of staff.
  7. Complaints (aka. grievances): Starting from when these are voiced, rather than when they become responded to as a formal grievance, the number of complaints can be an indicator of engagement, organisational health and management skills.
  8. Time spent on ‘noise’: Not a traditional measure you see in many Business Balanced Scorecards, however I would argue that given how significant the time taken to discuss issues with people can be (restructures, rumblings, pay etc.), this is one you should start tracking to show how smoothly (or not) things are going in the business.
  9. Absence rates: Either as a percentage of time or a score such as the Bradford factor (the premise of this being that a high volume of short days is more disruptive to a business than long periods of singular absence), these can be an indication of the obvious workplace risks but the less obvious engagement and management skills and should be used carefully as they really only give you any meaning once you go above 12 months of data.
  10. Employee happiness score: I put this one last but for many this is the only employee score considered. A happiness score should not be taken as the ‘employee magic’ score (there are other surveys which can measure that & are the sum total of all of the majority of these metrics listed here), but at its most basic, feedback from your team should be taken at regular intervals (better to ask 1 question once a month and score it rather than 50 on an annual basis) and acted upon immediately. This builds trust and keeps the involvement high.

You don’t need to measure all of these – I have seen firms disappear up their backsides trying to cover every eventuality. But if you get into the hang of doing just a few at least once a month when totting up all your other numbers, then in just a few months time you will already have some pretty powerful insight to feed into your decision-making going forward. Wondering if that staff jolly ‘did it’ for the team who went to Tenerife? Or whether your reiteration of the vision and values had any impact? Look no further… Add in some costs around average salary (for managers and all staff) and relevant customer data and very quickly you’ve got yourself several nifty ways in which to work out how you could influence your costs and, more importantly, your bottom line.

*A joke. I have never seen such a study (although it honestly wouldn’t surprise me if there had been one…..)

Photo Credit: Analysing Financial Data by Dave Dugdale