Managing People Problems in Small Business: 6 Critical Solutions
Managing people problems in small business is one of the most challenging aspects of running a company. As a mastermind facilitator for the past five years, I’ve seen how these challenges consistently impact business growth and create unnecessary stress. Let’s explore the six most common people management problems and their practical solutions.
Managing Recruitment Problems in Small Business
One of the biggest people problems in small business is finding and keeping talented employees. According to the Learning and Work Institute’s research, the UK faces a projected skills shortage that could cost £120 billion by 2030. This makes your recruitment strategy more critical than ever.
Modern Solutions for Small Business Recruitment
- Traditional job boards and social media platforms (LinkedIn, Indeed)
- Professional recruitment agencies (more on this below)
- Network referrals from business contacts and current employees
- Direct approaches from potential candidates
Solving Retention Problems in Small Business
Managing people problems in small business often centres around retention. Our mastermind members have found these strategies particularly effective:
- Regular professional development opportunities
- Clear career progression paths
- Competitive compensation packages
- Strong company culture and values
Performance Management: A Critical Small Business People Problem
Small business people management becomes particularly challenging when dealing with performance issues. Here’s what successful business owners in our mastermind groups implement:
Key Strategies for Managing Performance
- Comprehensive standard operating procedures (SOPs)
- Clear onboarding processes
- Regular performance monitoring systems
- Defined company values and behaviours
When to Address Serious People Problems in Small Business
Sometimes, despite best efforts, an employee isn’t the right fit. Here are clear indicators it might be time to make changes:
- Consistent underperformance despite support and training
- Misalignment with company values
- Negative impact on team morale
- Resistance to feedback and improvement
Building Success: Small Business People Management Without a Large Team
A common question from growing businesses is whether they need to employ people to achieve success. The answer depends on your business model, but consider these alternatives:
- Outsourcing to specialists
- Using freelance professionals
- Implementing automation solutions
- Strategic partnerships
Creating a Strong Culture to Prevent Small Business People Problems
Culture isn’t just for large corporations. Small businesses often have the advantage of building and maintaining a strong culture more easily. Focus on:
- Clear communication of company values
- Leading by example
- Regular team engagement activities
- Recognition and reward systems
Real-World Success in Managing People Problems
Consider Chris Shaw, MD of Overview Studios. By effectively managing people problems in his small business, he’s created a situation where talented CGI artists actively seek to work for him. This demonstrates how strong company positioning can transform your recruitment challenges into opportunities.
Transform Your Small Business People Management
Managing people problems in small business doesn’t have to be overwhelming. The To Be Honest Mastermind offers unique support with two experienced facilitators, ensuring you get comprehensive help in addressing your people management challenges. Our members consistently report breakthrough moments in solving their people problems through the collective wisdom and experience of the group.
Ready to Solve Your Small Business People Problems?
Book a confidential chat with Peter or Paul to discover how our mastermind group can help you overcome your people management challenges and build a stronger team. We’ll discuss your specific issues and how our group can support your growth.