New or old, big or small, workplace fairness is every company’s business.
In the midst of immediate challenges that SMEs may face, such as managing costs and growing their business, preparing for the upcoming workplace fairness legislation may not always be at the forefront of their agenda.
However, it is essential to recognise that ensuring workplace fairness offers benefits to all organisations, including SMEs. Here are some reasons SMEs should prioritise workplace fairness and start factoring it into their core business objectives.
More engaged and productive staff
As the saying goes, “Take care of your employees, and they will take care of your organisation.”
In SMEs with a lean workforce with limited resources, maximising the potential of each team member is even more important for achieving sustainable growth.
When employees are treated fairly, they will be more motivated to do their best for the organisation. As a result, they feel more meaningfully engaged and productive, both with the work they are doing and with the colleagues they work with.
Creating a fairer workplace can include putting non-discriminatory hiring practices in place, implementing transparent performance management processes and ensuring fair and sustainable wages in accordance with the National Wages Council’s guidelines.
Better staff morale and a more harmonious workplace
Workplace conflicts are inevitable, but how they are handled and resolved lies in your hands.
A potential misconception in small close-knit teams is that a grievance handling process may be deemed unnecessary, as communication channels are relatively more open, and issues can be worked out informally.
But when miscommunication and misunderstandings occur, they can negatively impact staff morale and productivity if they are not managed properly, which could have even more far-reaching consequences in a small team.
A strong culture of fairness reduces conflicts, prevents negative emotions from building up, and improves cooperation within teams in the long run. When conflicts are minimised, employees can focus their time and energy on delivering good quality work and achieving business outcomes.
The Grievance Handling Handbook and the Implementation Guide for SMEs to Adopt Tripartite Standard on Grievance Handling offer helpful information for implementing the grievance handling procedure.
Better access to the best talent
A 2022 report by the World Economic Forum found that 48% of SMEs cite talent attraction and retention as their biggest challenge. In today’s increasingly competitive labour market, what makes companies stand out are their culture and values. Those who prioritise and intentionally build a workplace culture based on fairness have a distinct advantage when it comes to attracting and retaining top talent and can reduce turnover rates by up to 27%.
This can result in cost savings in the long run, helping SMEs – who already grapple with a tighter budget – save on the cost of hiring and retraining new employees.
No dedicated HR team? No worries
Despite limited resources, it is good business sense for small firms to strengthen their HR capabilities. This can include fractional HR, where companies engage HR professionals on a part-time basis rather than hiring dedicated staff to save costs.
You can also appoint an existing employee – such as a trusted manager or supervisor – to be the dedicated person handling staff feedback or grievances and send them for relevant training workshops to equip them with the necessary skills for the role.
Prioritising workplace fairness
Achieving a balance between immediate priorities and proactively preparing for workplace fairness legislation is crucial for organisational success. SMEs need to cultivate a culture that embraces workplace fairness along with business growth, as neglecting it can prove costlier in the long run.
Not sure where your organisation stands in terms of workplace fairness? Take a quick self-assessment via the Fair and Progressive Employment Index (FPEI).
This article is contributed by the Tripartite Alliance for Fair and Progressive Employment Practices (TAFEP). To learn more about Grievance Handling and the Tripartite Standard on Grievance Handling, visit tafep.sg
