One of the biggest challenges for any small business owner is acknowledging areas of needed improvement. In order to be successful, every company has to its gaps as well as it strengths, so the management team can address potential and existing weaknesses while emphasizing existing capabilities. It’s a balance many organizations never find.
The same holds true in the IT industry. VARs and MSPs often employ some of the sharpest minds in the tech community, able to design or solve virtually any computer or networking issue, but go blank looking at balance sheets or sorting through tax codes. IT entrepreneurs are not alone in that challenge, but owners face similar challenges.
One of the greatest concerns is the personnel side of the house. While financials are crucial in the long run, a vast majority of businesses will never even get off the ground without a solid comprehension of human resources. The key to IT services success is putting the right people in the right positions at the right time. That requires an effective plan for hiring, training and retaining qualified and motivated employees ̶ which always sounds simpler than it is.
Many small businesses have little or no human resources strategy. In the channel, sole proprietorships are quite common and the majority of IT shops have less than five employees. Hiring is usually sporadic, with little planning, and recruitment efforts are often last minute and reactive. Some simply bring in friends or family members to fill roles they may (or may not) be qualified for. Other providers struggle to attract the types of skilled professionals they need to move their business to the next level. That’s what happens when an organization lacks an effective HR strategy.
The VARs and MSPs who are most successful at growing their business understand the importance of proactive personnel programs and policies. Some hire experienced professionals to develop and run their HR activities, while others tap in to the skill sets of outside practitioners to fill this crucial role. This is one area where IT firms need to be extremely cautious. Small businesses tend to ramp up slowly, often bringing on an entry level admin person to handle backend operations such as customer service, billing and general office management. But when it comes to advanced HR responsibilities, you need professional support.
Personnel specialists could be compared to IT security experts. A respected professional knows more than the basic processes. They understand their company’s or their client’s end game (what goals they hope to achieve) as well the laws and regulations that apply to that specific organization. That allows them to design the right plan and develop a proactive approach to address potential threats and issues, while minimizing the legal risks associated with hiring, firing and managing employees.
- Recruiting: skilled HR specialists can help VARs and MSPs identify the best prospective candidates, where to find them and how to reel them in. They also understand the importance of job descriptions to a company’s recruiting and retention efforts. On the hiring side, those documents highlight requirements and detail the responsibilities so potential applicants not only know what to expect, but understand which positions they should (or hopefully shouldn’t) apply for. A good job description can be used as a template for employee reviews, allowing managers to measure employee performance based on the key criteria outlined during the onboarding process.
- HR policy development: As with any business function today, managing employees can be fairly complicated without the proper processes and standards in place. IT services firms with remote or mobile workforces need to focus even more on their policies and procedures, which serve as a guide when the management team isn’t readily available. Of course, rules mean nothing if they aren’t written down and readily accessible to everyone in the company. Policies and procedures need to be properly documented and compiled in an employee handbook and distributed throughout the organization. This information should be completely covered during the new hire onboarding process, and discussed periodically in company meetings, luncheons and other employee gatherings. Review and reinforcement is crucial. CompTIA has made that process a lot easier for its Premier members. They can create their own human resources employee handbook in minutes using this simple step-by-step, customizable template. Learn more about the benefits and costs of becoming a CompTIA Premier member here.
- Training: this is a crucial activity for any organization, but is critically important in the IT due to the complexity involved and the speed of change. The role of the HR team is to ensure that each employee understands his or her career path expectations and options, and to provide or facilitate the programs or exercises that will get them there. That typically involves scheduling on and off-site, as well as online training classes, or, in some cases, simply communicating the details of local programs or industry sessions that are available. The HR team should be a valuable resource here; charting opportunities, facilitating education and ensuring employees attain the certifications required for current positions and future roles.
- Retention: The HR professional’s role with employee job and career satisfaction is often overlooked. Most successful IT firms offer some type of incentive or enrichment program to their workers who perform at or above their expected performance levels. As VARs and MSPs grow, employees expect career paths and opportunities to advance based on merit. Programs that address those expectations, with the full support and understanding of each member of the management team, are essential for a thriving IT services firm today.
The HR function is becoming an increasingly critical role in the IT channel today. Whether your firm has just one employee, or more than one-hundred, each of the responsibilities listed above needs to be handled by someone in the organization if you wish to scale the business. Skilled professionals have choices, and the best companies know not only how to attract them, but how to keep them satisfied and productive. That’s the goal of any good HR program.
Brian Sherman is Chief Content Officer at GetChanneled, a channel business development and marketing firm. He served previously as chief editor at Business Solutions magazine and senior director of industry alliances with Autotask. Contact Brian at Bsherman@getchanneled.com
