What All Small Employers Need to Know, a Rant, from an HR Expert
Hello Dear Reader,
I am writing this letter not to alarm you, nor to vent my frustrations, but rather to address a question I am frequently asked: "What do I wish all small businesses knew about labor law and HR?" Please understand that I could easily spend an hour discussing each of these points if given the opportunity.
Here are the top 12 things I wish every small business employer knew:
"AT WILL" employment doesn't actually shield an employer from potential repercussions. While it's true that you can terminate someone at any time for any reason, they still have the right to file for unemployment or even take legal action against you. That's how the system works.
If an action or incident isn't documented, it's as if it never occurred. When dealing with an employee's poor performance or misconduct, it's crucial to document the situation. Consider sending an email to yourself or, better yet, to the employee, summarizing the conversation. This documentation will be invaluable if you need to terminate the employee and want to provide evidence to justify the decision and avoid unemployment claims.
When hiring, focus on qualities that can't easily be taught; hire for cultural fit first, then consider technical skills. While technical skills can be taught, qualities like respect for others, the ability to work independently, and a strong work ethic are more inherent. Prioritize hiring individuals with these qualities, as they can adapt to your specific processes.
A handbook serves as a rulebook, outlining how the game is played. Having a well-structured handbook ensures that everyone understands the rules and expectations, which makes managing the business smoother.
Correcting poor performance is more cost-effective and less stressful than recruiting new employees. With clear guidance, accountability, and regular support, it's possible to turn around an underperforming employee.
Transparency is a form of kindness. If an employee's job is at risk, they should be aware of it. Surprises should be avoided when issuing written warnings or terminations.
Supporting your employees pays off. Taking an interest in your employees' lives and well-being fosters a strong connection. Small gestures like knowing their families and caring about their personal development can go a long way in retaining employees.
Unicorns are rare, but valuable employees are not. Rather than holding out for a perfect candidate, if an applicant possesses 90% of the desired qualifications and the right attitude, consider hiring them. The last 10% can often be developed over time.
Your business already has a culture, whether you realize it or not. It's wise to shape your culture intentionally to align with your goals. Culture is a key topic candidates inquire about during interviews. Be prepared to discuss your culture and provide examples of how it's reflected in your daily operations.
Act swiftly in the competitive hiring market. If you've conducted a successful interview, reach out within 24-48 hours to move forward. Delaying your response could result in losing top talent, as job offers are sometimes extended on the spot.
Don't hesitate to leverage available resources. Recognizing your limitations is the first step. Regular interaction with HR professionals can prevent crises and address employee issues proactively.
Embrace the unique benefits of working in a small business. Offering benefits doesn't always mean providing traditional perks like health insurance and retirement plans. Simple benefits like a cell phone reimbursement can be highly appreciated by employees, acknowledging their contributions.
Thank you for your time and consideration.
Sincerely, Tami Parker CEO UNIcycle Business Consulting