In our 2023 HR survey, we collected responses from 2,065 small businesses, ranging from micro businesses to those with a few hundred employees. The survey covered eight crucial areas of HR, spanning from pre-employment to post-employment processes. We aimed to identify the best practices and patterns of successful HR management in these organizations.
You can download your copy of our 2023 Small Business HR Benchmark Report at no cost here.
Understanding Business Growth
Before delving into the survey findings, it’s important to acknowledge that numerous factors influence business growth, such as pandemics, interest rates, consumer demand, and competition. We recognize that even organizations with exceptional HR practices can face down years due to external circumstances.
Clear Patterns Emerge
Upon analyzing the data from these small businesses, clear patterns emerged, shedding light on the HR practices of the fastest-growing companies in America. We will share insightful statistics that highlight the differences between these thriving companies and those that experienced a decline.
Examining the Areas of People Management
The survey covered essential aspects of people management, including recruiting, hiring, onboarding, compliance, development, performance management, retention, and post-employment processes. For each category, we posed five questions, aiming to uncover the best practices in HR throughout the entire employee lifecycle.
The Golden Question
Among the survey questions, one stood out: “How would you describe your business performance last year? Did you experience fast growth, remain flat, or encounter a down year?” This question allowed us to analyze the correlation between HR practices and business outcomes.
Importance of Compliance and Best Practices
While external factors undoubtedly influence business growth, the data demonstrated that companies with superior HR processes, compliance adherence, and implementation of best practices consistently outperformed their counterparts. Compliance plays a crucial role in HR, ensuring legal adherence and minimizing risks.
The Impact of HR Processes on Growth
The survey findings revealed that businesses with robust people processes, proactive HR management, and a strong focus on compliance were the fastest-growing companies in America. These organizations prioritized best practices, leveraging HR strategies to drive growth and maintain a competitive edge.
Conclusion
The data from our survey of 2,065 small businesses underscores the importance of effective HR management in driving business growth. While external factors cannot be ignored, the implementation of best practices and a commitment to compliance emerged as key differentiators for success. By investing in their people and HR processes, businesses can position themselves for sustained growth and enhanced performance.
Watch our video, Onboarding and Compliance Tips, where we analyze the data from our 2023 HR Survey.