The Key Trend for SMEs Looking Ahead to 2023
Posted on 22nd November 2022 at 10:06
As 2022 draws to a close many of us are firmly looking to the future. It's the time of the year for budgeting, annual appraisals, and making plans for the New Year Ahead, From a HR and People Perspective, we predict 2023 will be the year to develop resilience.
With the increasing economic pressues, it’s vital that SMEs to develop robust people practices that will allow employees to adapt and thrive through the coming months. Sadly, for some this will mean redundancies; but for others, it might mean realigning resources to adapt to new markets or investing further in keeping key people.
2023 is the year to build clear frameworks that boost productivity: The formal framework (contract, policies) and the informal practices (quality and frequency of conversation) between the employee and their manager are key, especially in times of change.
Performance and engagement are inextricably linked, and great performance management leads to engaged employees, which will directly boost the bottom line.
What does building a clear framework mean?
Clear frameworks are twofold.
It starts with the written contract – which sets up the expectation between the employee and employer. But not outdated, dusty, and incomplete contracts and policies, usually contained in an “employee handbook” made up of hundreds of pages of legal jargon sitting on a shelf somewhere. They are rarely used and seldom support simple, honest communication. But some written documentation is essential (especially since the advent of Day 1 Rights made law in England in The Good Work Plan in April 2020). It’s vital that contracts and policies are fit for purpose, easy to read, understood, and crucially, followed.
Secondly, SMEs must improve the quality of conversations around performance. As the Clearview Performance Management report 2022 reports, HR can’t sit in on every conversation, but it can act as a facilitator of better interactions between managers and employees. People are having regular conversations about performance with managers, but there are real concerns around the quality:
“We ask employees how meaningful the conversations they have with their managers are, and 31% of them said they feel the conversations they have are basic or bad, with little or no focus on wellbeing or development.”
If the conversation isn’t wandering into the territory of ‘which performance goal are we trying to reach and how can I help you get there, it’s unlikely to drive real impact. HR can provide guidelines and frameworks that ensure performance conversations are covered.
Does your organisation have accidental managers?
The UK has, it is estimated, over 2.4 million “accidental managers” who have been promoted without any training in people management. Typically, these individuals are technically competent, and often high performers in their field; the classic assumption is that they will then make good leaders of teams. According to People Management Magazine, unqualified managers are a principal cause of poor productivity in the UK. Good management is a skill that can be learned. It is best learned through a combination of:
Formal training: SMEs can take advantage of fully funded training from the ILM or CIM, to name a few.
Coaching / mentoring from the best leader in the organisation.
One-to-one coaching and support from a trusted HR partner.
As you look towards 2023, If your business needs support creating clear frameworks to boost resilence and productivity, take action today. Booking our complimentary breakfasts here
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