When it comes to human resources for small companies, there is a lot more to consider than just creating a safe and happy workplace for your employees.
Of course, you want to build an environment where your employees enjoy coming to work, but the HR world is a little more complex than that. There are strict rules and best practices involved in setting up a proper HR solution for your business.
It goes without saying that your employees are your number one asset. From recruiting to developing competitive employee benefits, you’ll be well on your way to understanding some of the crucial ins and outs of HR with these HR Success Factors.
Know and Understand Employment Law
Understanding employment law is by far one of the most important HR success factors for small businesses. Regulations cover nearly every aspect of hiring, retaining, and terminating employees, including factors such as compensation, benefits, and safety. To start familiarizing yourself with employment law, read the Federal Employee Handbook.
Hire and Retain Good Employees
Everyone wants to become an employer of choice, but you have to earn that title first. Focus on what matters most to your employees, such as compensation, company culture and opportunities to move up. Next, develop a competitive compensation and benefits package. And last, but not least, focus on creating a positive and supportive culture, where your employees can grow and advance their careers. Build it and they will come (and stay!).
Network With Other Small Companies
You’re not the only one navigating the HR scene. Join a professional organization or chamber of commerce to network with other small business owners. When you create a community, you can share your experiences and learn from each other’s successes and mistakes.
Document, Document, Document
Documentation is important in almost all areas of business, but especially important when it comes to HR items. HR can get complicated when serious employee matters come into play, like performance reviews and other more serious complaints. To keep a small business compliant, having proper documentation in place about employees and company policies is necessary. One of the most beneficial ways to do this is to provide an employee handbook that specifically defines all primary processes of the business.
Mismanaging payroll is a fast track to losing your employees’ trust. Every paycheck must be correct. Paying them on time is critical, too. Set a strict payment schedule and stick to it. Also, make sure you are compliant with the rules around correctly classifying your employees—such as exempt or nonexempt—and paying them based on their appropriate classifications.
Performance Management Focus
Performance management involves providing your employees with a clear path toward success, by developing personal and company goals that they can work toward. It’s a solid tactic for retaining your staff because when you recognize and reward your employees, they feel more valued. Alternatively, it can also help weed out under performers within your company.
Whether you are an HR department of one or ten, don’t be overwhelmed by this list. You don’t have to manage HR alone. Not just small companies are pondering the value and need for HR outsourcing services.
Whether you are a startup or a growing company with 50+ employees, HRO has the tools you need so you can focus on guiding your team to success.