Breaking news – your one-stop shop for human capital management is soon to open a separate division, just for you! Yes, the human capital needs of SMEs in PNG will be packaged up and tailored to suit the particular challenges SMEs face. Who is this one-stop shop? Human Capital Management Solutions (HCMS), and Linda Paru in particular whose enthusiasm for the SME sector is infectious.
After 30 years working internationally and in PNG, initially in psychology which somehow morphed into HR, Linda is one of many quality-approved Business Link Pacific advisors across the Pacific Island countries supported by BLP. Returning to PNG and setting up her own business after many years studying and working away, Linda soon realised she had more to learn.
Six years ago, Linda found out about BLP through her accountant, a BLP Advisor – Akae Beach of Beach Accounting Advisory. At the time Linda did not know how to translate what she knew about providing services for medium to large organisations to a smaller SME-sized business.
Just two years ago Linda reached out to Akae Beach who suggested she apply to become an approved advisor. Working for a small fee for 18 months with five SME clients gave Linda a chance to learn and she’s now created her own model which is proving successful for smaller businesses.
“I wanted to understand the mindset of SMEs in terms of the changes taking place in their organisations. I found there are usually 1-3 people involved in a startup; if there are up to 10, they will generally be family members plus friends and a couple of specialist hires. For businesses with more than 10 people involved, the framework is often fluid, with friends, former colleagues and specialist hires, and part-time workers.” This is very different to the structured, corporate world Linda was familiar with.
“I insist any SME who arrives at my office undertake diagnostic testing, either through the Centre for Excellence in Financial Inclusion – CEFI – or by making use of BLP’s free online business diagnostic tools. Without this, I can’t be certain HR advice is what their business needs. Financial literacy is not enough; they need competency in terms of understanding the labour laws, salaries and benefits.”
Recruitment is the core HR need of SME businesses, and Linda has pivoted her own business to focus on recruitment. This forms the basis of her SME package, designed for three sizes of SME, ranging from businesses with less than 10 employees to those with up to 40 employees. Most customers referred from BLP fall into the 1-10 employee category, and these are the most vulnerable and most in need of help to grow.
“We look at the business overall and build a transitional structure in terms of finance and administration, leading the finance, administration and human resource portfolio with an HR Officer reporting to the Finance and Administration Manager for the first couple of years, and it is this which allows the business to grow. As they do grow, the business then needs a separate human resources division. During our advisory we develop job descriptions for all positions, and a standard employment contract template for management and a letter of engagement for other staff. We also provide staff with a handbook which explains employee and employer rights, leave entitlements and minimum pay.” This package includes an offer to recruit one specialist position for the SME as is needed.
Linda is passionate about ensuring her clients achieve proper success, and not just financial success. “I want them to be competent and find their place in the SME world.”
Alongside this is Linda’s passion for women in business. “Embarrassingly, all my leadership team are women at the moment!” On that theme, her side hustle is rapidly gaining momentum: a social enterprise with 36,000 women members, of which 6,000 are SMEs. Later this month Linda has arranged a meet and greet for this group and has arranged several of BLP’s other business advisors to showcase how they can help these women in business.
“I know the rigorous process BLP put their advisors through, so I know I can recommend these people to my women’s group.” High praise, and absolutely correct. BLP advisors must be excellent in their field. Like Linda.
BLP facilitates access to business advisory services and financial support. To start your journey with BLP, you can self-assess your needs by using the free online tools available to help small and medium-sized businesses diagnose areas in their businesses that an advisor could improve.
The first step can be the online Business Health Check. You can also check your business’s resilience to respond to crises or climate change challenges on the Business Continuity Planner and the Climate Action Sensor. If you prefer to meet a local BLP representative in person to discuss your business, get in touch with our local partners to arrange a face-to-face Diagnostic.