Having a firm foundation for your business’ human resource can save your business money and set it up for success.
Although, human resource management can be a challenge for small businesses, like yours especially, which typically may not have an HR department to rely on. You may be limited to one HR person, or this responsibility may still belong to you, the CEO.
Regardless, you need to understand as a small business owner, the challenges facing your business so you’re prepared to tackle Human Resource issues as your company, and workforce grows.
Unfortunately, there are no shortcuts when it comes to effective human resource management. So, if you are an entrepreneur who plans to hire employees, you might want to do yourself a favor.
Consider these five Human Resource challenges and how to tackle them, in ensuring you are compliant in all aspects of your business.
1. Staying up to date on all current laws and regulations
The legal landscape of the workforce is constantly changing. If your small business isn’t keeping up with laws surrounding wages, taxation, medical leave, and safety regulations, you could find yourself in a world of trouble. Not only would governing authorities have grounds to impose fines, but employees may file lawsuits.
To ensure you are keeping in compliance, regularly check in with local, state and federal regulations for any changes that may affect your business. Consult with a lawyer who can give you advice on areas you need to improve on. They will help you avoid costly fees and reduce your likelihood for employee lawsuits.
2. Having a solid plan for employee hiring and retention
Employee hiring and retention is a vital part of any business. However, with limited funds, small business owners can’t afford to bleed employees. To keep employees, you not only have to find the right talent, but give them a reason to stick around.
Before interviewing, make sure you know what you are looking for. What kind of experience should the candidate have? Ask questions to get to know their personality and character. Getting along with your coworkers is just as important as their expertise. Competitive wages and benefits packages will also go a long way.
3. Neglecting conflict resolution
At some point, the people in your business will not get along. To protect your employees and your business, you must know how to handle conflicts. Without proper conflict resolution, employees won’t feel supported and the results could be disastrous.
Not only is this another area that could lead to lawsuits, but countless small businesses face defamation from disgruntled employees. Neglecting this critical component of your business can prove costly.
As part of further development, consider a management training program for all members of management over conflict resolution. This will help give you the necessary skills you need to develop communication guidelines and handle problems as they come.
4. Having a vision for your company’s culture
You probably have a specific vision for your business. But how much thought have you given to your company’s culture? When joining a company, people want to know what to expect.
What are the company’s values, standards and expectations? Is this a place where new ideas and cultural diversity are welcome? Even if you set clear expectations for your employees, it is likely that you will still occasionally encounter someone who refuses to comply with company culture.
Whether they let in intolerance or their own personal beliefs get in the way, it is important you have a plan in place to handle these situations in an appropriate, professional manner.Maintaining a current employee handbook is a great place to start.
This provides a tangible reference for everyone to have access to the same set of standards. By updating the handbook annually, you will also make sure your business is staying transparent and compliant.
5. Having a clear understanding of the cost of benefits
One important deciding factor when people search for jobs is the benefits package. This is a vital part of employee retention you don’t want to overlook. However, it can be one of the most expensive aspects of your business.
Most people will expect your basic medical, dental and vision package. But many also want retirement options and vacation or leave time, too. You have to understand the cost benefit of these things before venturing in them so you don’t end up running your business at loss.
As a business owner, you already have a great demand for your attention. Making sure you address these Human Resource challenges properly could be one of the best decisions you make for your business.