Good HR Practices Equal Growth for Small Businesses
Christopher Collins, Jeff Ericksen, Matthew Allen
School of Industrial and Labor Relations, Cornell University, May 2006
Small businesses profit by hiring workers who fit into their company culture, creating a "family-like atmosphere" where employees are trusted to manage themselves. That is the finding of a study by Christopher Collins, Cornell University associate professor of human resource studies at the School of Industrial and Labor Relations.
Collins found that small businesses that follow such strategies reap 22 percent more revenue growth, 23 percent more profit growth and have 67 percent less employee turnover than companies that do not have such hiring criteria. The successful hiring strategies include:
The findings are based on surveys of owners, managers and employees of 323 small businesses that employed between eight and 600 employees from across the country, with Florida having the most participating companies.
The findings are the fourth installment on a two-year, multiphased workplace study sponsored by the Gevity (soft "g") Institute, a human resources outsourcing and consulting company for small businesses that supports research at universities and businesses.
