Stratefix Consulting, a business consulting firm, conducted a survey to gauge what MSME enterprises understand about the HR function’s role in an organization.
Chirag Patel, Co-founder of Stratefix Consulting, “Until recently, HR was considered a peripheral function to most small business owners. They were ignorant of this function and its necessity as most of them had completed their education before HR became mainstream, leaving them unaware of its importance.”
“Aside from the salary, employees are attracted to the facilities available, the culture of having fun at work, and their favourite roles in the organization”, Chirag Patel added.
Chirag further added, “Employees’ expectations from a company have also changed over the past few years. Furthermore, employees rely heavily on growth not only in the present but also in the future. HR plays an important role in managing all of this.”
The survey has the following findings:
- More than 93% had limited or zero knowledge of the HR function.
- The survey says that in 20 percent of cases, business people are not clear about the exact role of human resources.
- In the survey, 58 percent of company owners said that the HR department does not need information on the company’s financial statistics.
- 71 percent of MSME Business owners opine that HR departments are more about employees’ interests and less inclined towards the company.
- 15 percent of the respondents, HR has two important roles: resolving employee grievances and handling benefits.
- In the opinion of 54 percent of the respondents, staff training is the second most important role.
- While 67 percent of the respondents think that HR is responsible for recruiting employees.
- 34 percent of business owners believe HR’s primary role is to increase employee efficiency.
- Only 33 percent of business people released the goal of setting for the HR department.
Only a mere percent of the respondents believe that HR contributes to the success or failure of their company, whether in good times or bad times.
The survey of over 1000 entrepreneurs/leaders of MSME companies. As the Indian MSME sector has been the engine of economic growth for several decades but the results have different aspects.
