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World HR Day: Shaping the new future

World HR Day: Shaping the new future

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Running a small business is demanding. Each day presents challenges that can affect your cash flow, your customers, and your ability to grow. Amid these demands, it is easy to lose sight of long-term financial priorities. However, businesses that last are not only those with good products or strong customer service. They are often the ones with better financial habits. This article outlines seven essential points that will help SMEs manage their finances more effectively, reduce risk, and plan for growth. 1. Start with a Clear Financial Plan A good financial plan gives direction to your business. It helps you set targets, allocate resources, and make informed decisions. Start by defining your financial goals. These should be SMART - specific, measurable, actionable, realistic, and tied to timelines. For example, you should determine how much revenue you need each month, what level of production or service delivery is required to meet that target, and how you intend to achieve it. Once your targets are clear, you will need a working budget. A good budget helps you monitor income and expenses, manage cash flow, and ensure that your business remains on track. It also provides a basis for deciding what to prioritise and what to postpone. At its best, your financial plan should help you answer key operational questions such as what resources are required to operate or grow, where those resources will come from, what they will cost, and whether your business is in a position to take them on. Planning in this way reduces uncertainty and allows you to run your business with greater clarity and confidence. 2. Maintain Accurate Financial Records Accurate financial records are essential for any business. Whether you are managing day-to-day operations, planning for future growth, or applying for funding, clear and reliable financial information allows you to make sound decisions. Many small businesses struggle in this area due to time constraints, limited expertise, or a lack of systems. However, proper record-keeping should never be overlooked. It supports internal decision-making, strengthens external credibility, and improves your ability to respond to opportunities or risks. Business owners can start by gaining basic knowledge of accounting principles and tools. Training employees in simple record-keeping practices also helps to build internal capacity. In some cases, it may be worthwhile to engage professionals who can help you put the right systems in place and prepare essential reports at a cost that makes sense for your business. 3. Choose a Banking Partner Aligned with Your Goals The right banking relationship can make a real difference to your business. A bank like Absa Bank is more than a place to keep your funds. It is a partner that can support your operations, guide your financial planning, and help you take advantage of growth opportunities. Begin by understanding your business needs. These might include working capital support, payments and collections services, or trade finance. Once your needs are clear, assess whether your bank offers the right mix of services, accessibility, and expertise. Your banking partner should make it easier to run your business, not harder. They should share your ambition to grow, be responsive to your concerns, and provide solutions that are tailored to the stage your business is in. A strong banking relationship will give you confidence and peace of mind as you build your enterprise. 4. Deploy Effective Payment Solutions Revenue is the foundation of every business and the way you go about collecting it is key. In today’s economy, customers expect fast, simple, and secure payment options. If your business only accepts cash, you may be turning away potential sales without realising it. Providing customers with flexible payment options is no longer a luxury. It is a necessity for growth and long-term relevance in a digital economy. Offer customers alternatives such as instant bank transfers, mobile money, card payments through point-of-sale devices, or more innovative solutions like Absa Mobi Tap to improve your customer experience and increase your reach. These methods reduce delays, enhance transaction security, and demonstrate professionalism. 5. Meet Statutory Obligations Promptly Every business has legal and regulatory responsibilities. These include filing and paying taxes, submitting Social Security and National Insurance Trust contributions, and meeting other sector-specific requirements. Complying with these obligations on time helps you avoid penalties and disruptions. It also builds your business’s reputation and improves your standing with financial institutions and regulators. To stay compliant, you should adopt a legal structure that suits your business model and goals. You may also wish to seek legal or tax advice at key points in your journey. Planning ahead for obligations such as annual tax payments or quarterly filings ensures that you are not caught off guard. Meeting your statutory responsibilities consistently is a mark of a well-run business. 6. Manage Your Risks Running any business involves risk. These risks may include delayed payments from customers, unexpected costs, economic downturns, or even natural disasters. For small businesses operating with limited resources, such events can be difficult to absorb. This is why risk management must be part of your financial routine. Start by identifying the main risks that could affect your business. Put in place basic measures to protect your operations. This could mean setting aside emergency reserves, purchasing insurance, or diversifying your income streams. Being proactive about risk does not eliminate uncertainty, but it helps you stay in control when challenges arise. It also signals to lenders, partners, and customers that your business is prepared and resilient. 7. Separate Business and Personal Finances It may be tempting to treat your business account as your personal wallet, especially in the early stages. However, failing to separate your business and personal finances can lead to confusion, tax problems, and credibility issues. As a business owner, you should pay yourself a fixed salary. Avoid withdrawing funds at random or covering personal expenses with business income. If you invest personal funds in the business, document it properly as a loan or equity contribution. Keeping your finances separate helps you maintain clear records, assess business performance accurately, and present your enterprise in a more professional light to partners, banks, and regulators. At Absa Bank, we believe that strong financial habits form the backbone of every successful enterprise. Our commitment is to walk with our clients and customers at each stage of their journey, providing guidance, tools, and solutions that help SMEs grow sustainably and with purpose.

Financial Habits Every SME Must Adopt: The 7-Point Check List

September 25, 2025
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World HR Day: Shaping the new future

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World HR Day: Shaping the new future
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Expects share critical areas for development amidst the growth of Artificial Intelligence

It’s World HR Day and we are all elated for yet another annual celebration that is gaining ground among HR practitioners especially in Ghana. Today, HR is a science with formulae and methods to measure the productivity or performance of the workforce, their output, return on investment, revenue, and business progress.

In today’s world, we see the increasing rise of Artificial Intelligence (A) which has become inevitable in society. The presence of AI is perceived by experts with varied lenses; as a necessary blessing and also a curse to humanity.  AI is seen as a means to greater productivity but also a threat to jobs being done by humans. Many industries will achieve a breakthrough in research, invention, and creativity with the use of AI and will boost both a higher level of productivity and a return on investment but with a price to pay in job cuts.

Many are worried that the invasion of AI will lead to a lot of job losses however, this may not be immediate communal and relationship based societies where a lot of the interactions are more human and based on the development of personal interactions and relationships. The Human Resource (HR) practitioner must draw up, implement and insist on policy adherence, rules, and processes which at times leads to application of sanctions. Training is also critical in the growth and career development of the person ultimately achieving company goals and plans and it is the responsibility of HR to work with Line Managers to make this possible. Deloitte’s study (2020) shows that investing in employee training can improve retention rates by 10%.

In marking World HR Day, this article seeks to provide insight into some core activities that are critical to the Human Resource function.

COMMUNICATION

In any business operation, effective communication is crucial, and the HR department is no exception. Communication plays a critical role in managing employee relationships, resolving conflicts, and promoting employee engagement in an organisation. Communication in HR can take various forms, including face-to-face meetings, written correspondence, digital messaging, and training programs.

Effective HR communication is crucial for engaging employees. The Chartered Institute of Personnel and Development (CIPD) found that good communication is crucial for employee engagement and well-being. HR professionals can foster engagement by providing regular updates, responding promptly to concerns, and ensuring that employees feel valued. Social events, recognition programs, and training opportunities can also boost engagement. HR must communicate to engage employees, resolve conflicts, provide training and development opportunities, and ensure legal compliance. As such, HR professionals must continually develop their communication skills to be effective in their roles. Effective communication is critical to the success of HR operations.

EVENTS IN HR

HR events are critical in promoting the overall success of an organization. These events are designed to support the development and growth of employees, facilitate team-building, and foster a culture of collaboration and inclusivity. This is to highlight the importance of HR events and provide examples of events that are commonly held in organizations. Apart from employee engagement and bonding which fosters unity, successful team building takes place leading to better understanding and collaboration among workers irrespective of their level on the work structure or reporting lines. This leads to learning and development of careers, upgrade in skills and mentorship sometimes without the people realizing it. Training on the job take place developing workers into leaders of the future business.

ENSURING HEALTH AND SAFETY AT THE WORKPLACE AS AN HR PRACTITIONER

Ensuring safety and a healthy work environment is crucial for the well-being of employees and the overall success of an organization. A company that prioritizes health and safety not only reduces the risk of illnesses and injuries but also enhances employee morale, productivity, and job satisfaction. Protection against accidents, injuries, and illnesses: A well-implemented health and safety environment prevents workplace accidents, reduces the risk of injuries, and illnesses and safeguards employees from occupational hazards. Establishing clear communication channels for reporting (potential) hazards, injuries, and illnesses is encouraged leading to problem solving.

PERFORMANCE MANAGEMENT

Performance management is a corporate management tool that helps managers monitor and evaluate employees’ performance. Performance management’s goal is to create an environment where people can perform to the best of their abilities and produce the highest-quality work most efficiently and effectively.

In practice, performance management means that management is consistently working to develop their employees, establish clear goals, and offer consistent feedback throughout the year.

For the HR department, performance management is an important system for developing and retaining employees, as well as reviewing their performance.

Additionally, it provides an opportunity for exchanging feedback between a staff and the line manager fostering communication and feeling of inclusiveness. It increases employee retention because higher performers are identified and rewarded. Those staff who need help would then be assisted with training initiatives to help build them up. The goal is to boost productivity and instill the right feeling of values in the staff member that they are appreciated and encouraged to improve their skills thus growing in their careers.

ANNUAL LEAVE & ITS RELEVANCE TO WORK

The concept of leave is one that has been around for a very long time, and its importance cannot be overstated. In many countries, including Ghana, laws have been put in place to ensure that workers are entitled to a certain number of days off work each year. In Ghana, the Labour Act 651 (20) clearly states that employees should be given some days from work. There are several types of leave, including annual leave, sick leave, maternity leave, and paternity leave and the number of days differ from one organization to the other. Many studies have shown that overworking can lead to burnout, which is a state of emotional, physical, and mental exhaustion caused by excessive and prolonged stress. When employees take time off work, they are able to recharge and rejuvenate their minds and bodies, which allows them to return to work with renewed energy and focus. This, in turn, leads to increased productivity and better overall performance. Taking leave from work also provides employees with an opportunity to spend time with their families and loved ones, pursue hobbies and interests, and travel. All of these activities help to promote a healthy work-life balance, which is essential for maintaining good mental health. It is imperative for employers to understand the relevance of providing their employees with adequate leave entitlements and employees must adhere to their organizational processes on taking leave to ensure that leave days are fully observed without interruptions and work flow is smooth.

The future is bright for HR practitioners and we have to improve our skills, re-examine the way we function in our various organizations so we get involved in the various businesses, understand the core business of the organizations we work in order to provide better service to the line managers and the departments that need it. This will ultimately make the organization build a better culture and be an employer of choice.

As we celebrate the HR practice, let’s aim to touch lives, businesses and communities.

Article by Global Media Alliance’s HR Team: Fafa Gbeho, Benjamin Coffie, Vida Osei Bonsu, Sweety Stella Aklika, Christiana Berko & Portia Laryea .

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