Dear Informer

Consider elements
of local success
before expanding

bh******@*******st.us“>bh******@*******st.us

Bob Lapkin, Creative Corporate Catering: 763.512.1212; *****@***********************ng.com“>bl*****@***********************ng.com; www.meetingmeals.com.

HUMAN RESOURCES

DEAR INFORMER: I have 20 employees and am about to start hiring several more over the coming months. What sorts of things do I need to pay attention to?

DEAR HIRING: Small companies that are about to go on a hiring spree should put some systems in place first.

Stacey DeKalb, an attorney with Lommen Abdo in Minneapolis, says she often sees companies that have put a trusted employee in charge of human resources years ago, but that person isn’t necessarily trained in the discipline.

First, she says, make sure you look at your application. Does it include any illegal questions? For example, you can’t ask for date of birth, or whether applicants have used workers compensation, or whether they’re married, or whether they’ve taken sick leave. “There are many ways we can get information we need, but we have to ask it in a permissible way,” DeKalb says.

Second, those same rules apply to interviews.

What’s illegal?  “What we’re talking about is any question that goes to someone’s protected class status in age, race, creed, color, nationality, conviction record…” It’s a long list, DeKalb says.

Another area that often trips up employers is improper classification, whether the employee is exempt or non-exempt from Department of Labor overtime rules.

She recommends an offer letter, documenting the terms of the offer and the expectations of the job, and then attaching the job description.

“The good news is that more and more employers are understanding this,” she says, but so are more employees. They understand their rights, and they don't hesitate to call the Department of Labor — perhaps triggering an audit — or to hire a lawyer to sue.

Putting systems in place before you begin staffing up is a great way to avoid litigation problems down the road, DeKalb believes.

Stacey DeKalb, Lommen Abdo: 612.336.9310; ****@****en.com“>st****@****en.com; www.lommen.com

RECEIVABLES

DEAR INFORMER: It’s hard to get some customers to pay on time. Should I call them up the day that they’re late, or is that too heavy-handed?

DEAR CASH FLOW: The conversation should start long before the customer is late to pay, says Rick Wall, CEO of St. Paul-based Highland Bank. “When you first strike the deal you set the arrangement,” he says, when the customer is eager to do business with you. “Immediately make that expectation, and don’t let them not abide by that agreement.

“Sometimes it works the other way: The business owner doesn’t set the tone, so the customer does,” Wall says.

“Don’t give any leeway. Don’t allow any time to go by” before calling. “Nicely, politely, let them know you’ve noticed that the payment hasn’t come in,” and keep pursuing it.

“Pursuing receivables doesn’t have to be nasty,” he says, but it has to be done. And if the customer won’t pay, you may have to end the relationship.

But isn’t it tough for small-business owners to possibly give up a customer who isn’t paying? “It can be tough,” agrees Wall. “But it’s tougher if you lose your employees or your vendor because you don’t pay them on time.”

Another option: Charge the customer more for late payment. “You have the opportunity to adjust the pricing. If a customer is supposed to pay in 30 days and doesn’t pay for six months, you’ll have to charge the customer more, because the fact is that customer is costing you more.”

Rick Wall, Highland Bank: 952.858.4753;  *******@***********ks.com“>ri*******@***********ks.com; www.highlandbanks.com