SETTING A PEOPLE STRATEGY FOR UK SMES WITH AN INDEPENDENT ADVISOR
 Setting a people strategy is critical for UK SMEs to attract, retain, and develop talent in a competitive market. Engaging an independent advisor in this process can offer SMEs specialised insight, objectivity, and strategic guidance. Here’s a comprehensive guide on how to approach this:
Why Use an Independent Advisor for People Strategy?
Objective Perspective: Advisors bring an outside view, free from internal biases, which can be vital for identifying overlooked opportunities or issues.
Expertise: They often have deep knowledge in HR, organisational behaviour, and current employment trends, which can be particularly beneficial if the SME lacks an in-house HR team.
Cost-Effectiveness: For SMEs, hiring a full-time HR strategist might not be feasible; advisors offer strategic input on a project or consultation basis, making it more budget-friendly.
Steps to Set a People Strategy with an Independent Advisor
1. Initial Assessment:
Audit Current State: With the advisor, assess the current HR practices, workforce composition, and organisational culture. This might involve reviewing employee satisfaction surveys, turnover rates, or performance metrics.
Identify Needs: Determine what the business needs in terms of workforce skills, leadership development, and employee engagement.
2. Goal Setting:
Define what you want to achieve with your people strategy. Goals might include reducing turnover, improving recruitment, enhancing productivity, or fostering a culture of innovation.
3. Strategy Formulation:
Recruitment: An advisor can help design a recruitment strategy that aligns with business goals, perhaps focusing on talent pipelines, diversity hiring, or specific skill sets needed for future growth.
Development and Training: Establish training programs that are not only compliant but also forward-thinking. Advisors can recommend or even provide training in areas like leadership, technology adoption, or compliance.
Retention and Engagement: Work on policies that improve job satisfaction and employee loyalty, like flexible working conditions, recognition programs, or career progression paths.
4. Policy and Procedure Development:
Advisors can assist in drafting or revising employment policies, handbooks, or contracts, ensuring they support the strategy and comply with UK employment law.
5. Implementation Plan:
Communication: Roll out the strategy with clear communication to all levels of the organisation. Advisors can help craft messages that resonate with employees.
Change Management: They can provide guidance on how to manage the transition to new practices, ensuring buy-in from staff.
6. Performance Metrics:
Set up KPIs to measure the success of the people strategy. An advisor can help define these metrics, which might include employee satisfaction scores, retention rates, or productivity benchmarks.
7. Ongoing Review and Adaptation:
People strategies should evolve with the business. Regular reviews with the advisor will ensure the strategy remains relevant, perhaps annually or when significant changes occur in the business or external environment.
Practical Considerations
Integration with Business Strategy: Ensure the people strategy aligns with the broader business objectives, whether it's scaling up, diversifying, or enhancing customer service.
Scalability and Flexibility: The strategy should be adaptable to the SME's growth phases. Advisors can help design scalable policies that remain effective as the business grows.
Cultural Fit: The advisor should also help in defining or enhancing company culture, which is particularly crucial for SMEs where culture can significantly influence business outcomes.
Conclusion
By leveraging the expertise of an independent advisor, UK SMEs can craft a people strategy that not only meets legal requirements but also drives business success through an engaged, skilled, and satisfied workforce. This strategic approach can turn human resources from a cost centre into a competitive advantage, paving the way for sustainable growth and innovation.
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