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Building quality HR system can take years for small and medium-sized companies – and that is totally fine

  • SELECTIO Grupa
  • 11. February 2025.
  • 7 min read

Organizations with many employees usually have complex HR systems and well-established HR practices that allow them to focus on key HR activities and build a high-quality work environment. However, medium and small companies often do not have developed human resources departments but rather have a single HR generalist who, in addition to all administrative tasks, struggles to develop a strategic HR function.

Attracting new talent and building a supportive organizational culture in which employees feel motivated and engaged are challenging tasks for small and medium-sized companies that lack financial and human resources. Retaining key talent usually becomes the responsibility of managers who do not have the time or tools to take a strategic approach to planning onboarding processes and employee development. A particular challenge is employee turnover, often directly linked to low investment in HR development.

In addition to small and medium-sized companies, organizations with many employees opening branches or expanding into new markets also face challenges in building a high-quality HR system. Although such processes can be complex and demanding, companies need to include an HR development strategy in their planning to empower leaders at all levels.

How can small and medium-sized companies improve the quality of HR processes? Where to start?

When companies decide to build an HR system from scratch, they usually anticipate that the entire process could take a few years.

The foundations for building a high-quality HR system are set through a strategic approach to HR development, which is time-consuming. Before building even the most basic HR processes, it is necessary to conduct an evaluation and benchmarking against the market and best HR practices. Additionally, a detailed analysis of the organization's needs, goals, and strategy is crucial to ensure that HR operates as a strategic partner and supports management from the very beginning.

Before creating a strategy for developing key HR practices, the first step is to determine where the organization currently stands in terms of HR maturity, what its strengths are, and which HR practices need to be built from the ground up. To achieve this, companies often seek expert assistance. The SELECTIO Group helps organizations build a strategic HR function using the same proven methodology that organizations go through during the Employer Partner certification process. The main tool in this process is a comprehensive digital questionnaire that covers all HR processes within the organization, as well as a broader overview of the company's operations.

What does the HR system analysis look like according to the Employer Partner methodology?

During the completion of the questionnaire, companies have access to strategic support from SELECTIO consultants, who analyse the submitted data in the context of the Employer Partner standard. This standard is based on 20 years of consulting experience in implementing regionally sustainable HR processes. In this way, consultants can realistically and fairly assess the quality of existing HR processes and identify areas that need improvement.

In addition to a detailed analysis of the HR system based on the Employer Partner methodology, companies receive a market and industry comparison, with benchmarking based on an evaluation of the highest-quality HR systems in the region. This includes a comparison of quantitative indicators of employee management efficiency with a group of companies similar in size, type, and industry.

Based on the evaluation, SELECTIO experts create recommendations and guidelines for the further development of the HR system, highlighting priority areas in an action plan. It is also possible to request the creation of an HR strategy proposal. These development guidelines are presented to the HR department, management board, and team leaders. This is crucial because the development of a high-quality HR system requires active participation and support from all management levels. In this process, the management board plays a special role, as its understanding and support of HR initiatives enable alignment with business objectives and the creation of a more efficient work environment. The entire process, from the start of collaboration to the final report, takes no more than eight weeks.

What does the "To be certified" badge mean?

Companies that do not yet meet the highest HR system quality standards required to become certified Employer Partners receive a clearer vision of the HR areas that need more attention after evaluation. Therefore, in the final report, these companies receive detailed conclusions from the certification team and an action plan. The action plan is structured within a defined time frame with an overview of the responsibilities for implementing the proposed processes and changes.

For such companies, SELECTIO Group experts assign a transitional Employer Partner "To be certified" badge, which signifies the company's readiness to invest in its HR system and retain motivated and engaged employees. This designation signals that companies are on the right path to establishing a high-quality HR system that will serve as a link between the company’s strategy and employee needs. These companies might experience greater employee engagement and will retain talent more easily. For candidates looking for new career opportunities, the "To be certified" designation signals that the company’s management and HR nurture a structured approach to building a high-quality and sustainable work environment.

"Through the certification process, we received a detailed analysis of our HR system, insights into our strengths, and concrete suggestions for improvement to enhance our system. This year, we started expanding our retail network to the Slovenian market, which has higher standards, so the Employer Partner certification has been extremely helpful in attracting talent," said Mirjana Radić, Head of Human Resources at Prima.

Prima is the holder of the new "To be certified" badge and one of the companies participating in the HR system assessment project according to the Employer Partner methodology.

How much time is needed to build an HR system that meets the highest quality standards?

Companies holding the "To be certified" designation typically need one to two years to implement all necessary guidelines and introduce changes that will elevate the quality of their HR system to the Employer Partner standard. An HR expert team is available as a strategic partner providing support for long-term development as well as internal and external promotion.

Once companies with the "To be certified" designation obtain the Employer Partner certificate, they must renew it annually. Through yearly recertification, companies continuously prove the quality of their HR system, encouraging them to view the development and maintenance of HR quality as an ongoing process that requires constant effort. Given that 94% of companies improve their HR systems during the annual reassessment, this approach has proven effective in creating high-quality workplaces and a supportive organizational culture.

If you want to start the certification process and prove or improve the quality of your existing HR system—or build it from the ground upcontact us.

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