How To Redefine Performance Appraisal Policies In SMEs

Human capital management now does not only rely on the 'one size fits all' thinking. Talent related decisions in today's context rely on a plenty of factors like company size, diversity of workforce, transforming employee expectations among many other critical factors. Small and medium sized companies come with their own set of unique challenges and opportunities when it comes to talent management, which may not be always seen in conventional large organizations. 

Most small and medium enterprises in their initial growth phase do not have clearly defined people management practices and goals. SMBs often depend on non - formalized, temporary or existing resources to carry out Human capital management (HCM) processes such as recruitment, learning and development and performance management. 

The problem with yearly appraisal: 

The UK's Chartered Institute of Personnel and Development (CIPD) says that at its best, performance management is a holistic process which ensures employees' performance contributes to business goals. It brings together many elements of good people management practice, including learning and development, measurement of performance, and organisational development. 

Performance Management is a continuous process. It involves ensuring that employee performances contribute to both team goals and those of the business as a whole. The target is to continuously improve the performance of individuals and that of the organisation. 

Click to read

Jet Airways to launch E-Marketplace for SMEs

Riding the digital wave, Jet Airways is planning to launch a marketplace for small and medium enterprises, making it the first airline in the country to launch such a platform.

The marketplace, to be launched in the next 3-4 months, will help SMEs buy/sell products online.

“We need to create an ecosystem that allows SMEs to leverage digital technologies, as they would not be often investing in these areas. SMEs generally focus on their own businesses and profitability,” Belson Coutinho, Vice-President - Marketing, E-commerce and Innovations, Jet Airways.

Mumbai-based IT firm DigiVation Digital Solutions has been contracted to build the marketplace.

The platform will be part of Jet Airways GlobalLinker, a digital travel and business networking portal for the SME sector. For the airline, this is however an attempt to increase the registrations on the portal, rather than an attempt to take on the digital majors.

“We produce a lot of content on GlobalLinker, ranging from financing a business to insurances, mostly written by experts and related to SME business. This content is free, while there are tools to integrate all e-mails — this a one-stop shop for SMEs,” he added.

Launched in 2014, GlobalLinker has about 50,000 registered SMEs with presence across sectors such as construction and real estate, agriculture and Agri products, healthcare, medical supplies and pharma. SMEs from business services and consultancy, banking, finance accounting and taxation are also on the portal, registration for which is free.

Jet Airways, India’s second-largest airline in terms of passenger traffic, provides a flat 10 percent off on flight tickets for SMEs registered with GlobalLinker, in addition to discounts that are on offer.

Targeting millennials, the carrier also intends to increase its focus on social media and introduce artificial intelligence and chatbots to provide assistance on a real-time basis.

Google to train business leaders from SMEs

Google has announced its plan to work with leading global training providers to equip 1,000 business leaders in the small and medium-sized enterprises (SME) sector by 2019 in a collaboration with UK-based digital transformation and leadership training company AVADO, Spring Singapore and the Infocomm Media Development Authority (IMDA).

In its announcement on Wednesday (19 April), Google stated that the course, Squared Online, is conceived as a digital leadership and marketing programme to foster the next generation of digital leaders in Singapore.

Google's regional director for South-east Asia, global marketing solutions, Ghislain Le Chatelier, said that Squared Online for SMEs is aligned with the Singapore government's "SMEs Go Digital Programme".

He stressed that Squared Online for SMEs equips businesses with the knowledge and skills to boost their in-house digital marketing capabilities, adding that the programme shows businesses how to reach global consumers online, building off the established Squared Online programme for large enterprises.

Click to read more

Managing Business Risks In SMES

Business by its nature involves taking risks. However, the level of risk taken must be proportionate to the rewards of the enterprise.

As a business owner, it is important to understand the risks that your business faces every day, so that you are then better prepared to manage them. The first step in implementing a risk management plan for your business is in identifying all potential risks your small business faces. Successful risk management is not just about the prevention or avoidance of losses, but includes the proper assessment of risks, measurement, thereof, mitigation and transfer of risk through tools such, as insurance for example, training and contingency planning for loss situations.

What are some of the business risks faced by SMEs and what can one do to mitigate against them?

Failure to manage cashflow is one of the biggest risks facing small and medium scale businesses. This risk usually leads to business failure. Every business must carefully understand where the money to sustain the core operations of the business is coming from every day. Critical issues such as rentals, bills, wages and payments for supplies are the lifeblood of a business enterprise and these commitments must be met timely for a business to be sustainable.

Click here 

7 things the new tax year will bring for SMEs

Personal Allowance Increase :

This April will see the personal allowance increase to £11,500 and the higher rate income tax threshold to £45,000. The Treasury says this means the amount someone can earn tax-free in 2017-18 will be over 75 per cent higher than in 2010.

How will this affect me? This is good news for employees of SMEs, as they will take home more of their monthly salary than in the previous tax year. Businesses will need to ensure they have the correct tax code for their employees.

National Living Wage :

Keeping in line with Philip Hammond’s Autumn Statement pledge, the National Living Wage is set to rise to £7.50 an hour from April 2017.

How will this affect me? SMEs will need to ensure they are paying all employees the correct new hourly wage from 6 April 2017.

Cash Basis of Accounting for Trading Income :

From April 2017 the entry threshold for the cash basis will increase from £83,000 to £150,000.

How will this affect me? The measure will increase the cash basis entry threshold to give more SMEs the choice to benefit from the cash basis simplification, which is an optional and simplified method for calculating taxable profits for trading businesses with straightforward tax affairs.

Read More