When you started out on your own as an entrepreneur, there is likely one thing you hadn’t considered; managing real people. Most entrepreneurs tend to feel a bit over confident in their ability to be able to lead. They quickly find out there is more to HR management than just having the employee agreement in place. People, no matter how talented, despite their age, have their own minds and wills which can be acted on at any time. Despite your best efforts and no matter what books you read on the subject of leadership, from time to time you will have to deal with human behavior at your business. How you handle it will make all the difference.
No one ever expects to hire someone only to have them later sue you for something. The thought itself is a bit unnerving, especially if you don’t have much previous experience in dealing with adverse behavior from an insubordinate. But happen they do, particularly if you are unfamiliar with the law that protects them from unfair (perceived or otherwise) actions from you. Do you know what all the employment laws are in your state?
If you have been thinking of involving some kind of HR Management professional or solution, you might be reading this and thinking, “Well, I have this covered. I will just hire an expert and be done with it.” What does an HR Management professional need to know in order for you to know they are qualified? Have you ever hired an HR professional before?
If you don’t really have any idea what qualifies an HR professional as skilled enough to keep you out of hot water then how can you know what or who to hire as an HR management solution to be able to help you? Fair question, isn’t it?
You might think you don’t need to hire anyone to help you out with HR at all, citing that you are far too small to be concerned with such things. Here’s what you can expect when you are not expecting an HR Management solution or professional to help you with the people aspect of your business:
Trust that if you don’t have one right now, you will have an employee in the future who could practically quote your state’s employment laws by code number. There will always be a savvy person in your midst who will tell you exactly when you are not doing it right when it comes to HR management in your business. If you are lucky they will just be annoying to listen to. If they are nefarious you might be a sitting duck for a lawsuit. What you don’t know about HR law in your place of business will harm you. If not now at some point in your career as an entrepreneur.
One of the very best things you can have in your company and in the hands of every employee is your employee handbook. Do you have one? Having an employee handbook can single-handedly keep the peace with your employees more often than not. When employees don’t know what is expected of them or what the rules and consequences are they get frustrated. Why did you writet up Joe for chronically being late returning from lunch but not Celia? How come you only notice the performance of some employees but not all?
Having basic rules in writing for everyone to read and sign keeps everyone and you accountable to an office that wants to run smoothly. Having an employee handbook also helps with employee relations inter-departmentally as well. If you do not have an employee handbook, get one done as soon as possible.
Getting in with a company when it is small and being around to watch it grow to something the size of Microsoft is a thrilling thing for most recruits to think about. Everyone wants to be in on something big and be there when “it all happened.” Having employees willing to stick with you through the pains of scaling up will be nearly impossible unless you communicate to them a few things:
You might not have thought about these things if you have been running too fast in growing your business lately but they must be considered if you expect to keep employees for a while. Turnover is inevitable but chronic turnover is avoidable if job descriptions are clear and your employees know where the road ahead will lead them if they follow your map to success.
A PEO, unlike an HR management consultant or full time HR Generalist, is your partner in managing your employees. PEOs have a vested interest in keeping your business HR compliant because they co-employ your employees. In short, they are legally responsible for making sure you are doing what you need to do regarding employment law.
If you are considering an HR Management solution for your growing small business, it would be well worth your time to speak to a PEO broker like PEO Spectrum. You could also be saving a lot on your small business healthcare benefits and payroll processing as well. In any case, you could be going to bed with happier employees in the near future by considering a PEO for your full-service HR needs today.
If you’d like to find out more about how PEOs can help you provide great benefits and payroll management at less than you are paying now, contact us today for a free consultation.
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