Jay Sachetti joined Jeff O’Brien, partner at Husch Blackwell and Dyanne Ross-Hanson, president of Exit Planning Strategies talked about the market for mergers and acquisitions, exit planning opportunities for companies that don’t end up for sale and how companies can maximize their eventual sale price during an early October panel at the first Upsize on Tap event at Summit Brewing Co. in St. Paul.
When the state Legislature passed a law requiring employers to provide paid leave and safe time for employees, Justin Bieganek started hearing differing details from friends, colleagues and peers.
Bad human resources practices also can have a negative impact on a company’s bottom line. Neglecting key areas such as recruitment, employee relations and government compliance can be detrimental even to those with an otherwise solid business plan.
So, let’s tackle these head-on. Here are some of the top HR-related mistakes small businesses make and how to avoid them:
More than 30 percent of all business failures can be linked to bad hiring practices, according to the U.S. Department of Commerce. When a position needs to be filled immediately, many managers tend to make quick and often poor hiring decisions. That can then turn into a difficult and sometimes prolonged termination process.
With about 450 employment lawsuits filed every day, firing someone should not be taken lightly. When handled improperly, business owners can find themselves tied up for long periods in frivolous lawsuits.
It’s crucial for a small business to devote the time and resources necessary to make sure the most qualified candidates are hired in the first place. Careful consideration should be given before selecting just anyone who walks through the door.
Managers, even before the initial interview, should pre-screen candidates and verify information on their resumes. And keep a long-term perspective: A company needs to have qualified employees in place now to be in a competitive position when the economy rebounds.
It’s tough and takes considerable time to stay on top of the growing number of ever-changing government regulations. But small businesses, in particular, can’t afford to look past them.
Research shows companies with fewer than 20 employees annually pay 45 percent more, or an additional $2,400, per employee to comply with regulations compared to a company with 500 or more employees.
All in all, employers with fewer than 20 employees should expect to pay approximately $7,500 per employee to comply with government regulations, according to the Small Business Administration.
While smaller companies are dealing with increasing regulatory burdens, fines and penalties for not complying can mount and easily cost tens of thousands of dollars and sometimes the business itself.
It’s absolutely necessary to keep up with local, state and federal regulations. on an ongoing basis. There are many resources available to help business owners stay informed and compliant. Many local and national organizations, including small business advocacy groups such as the National Federation of Independent Business (NFIB) in Minnesota, have information and support available (www.nfib.org).
When businesses don’t have written policies and procedures that are accessible to all employees, problems can result in the workplace. Tensions can rise when employees don’t know what is expected of them, oftentimes leading to conflict.
All companies, regardless of size, need an employee handbook that clearly outlines the company’s expectations of the employee and provides clarification on important business operations from how to request time off to maintaining client confidentiality.
Make sure to give each employee a copy and have them sign an acknowledgement upon receiving it. Without an employee handbook, businesses are setting the stage for employee relations’ disasters and potential employment litigation.
But don’t stop there. Actually using the handbook and being consistent in how it is enforced is as important as having one. Often, managers will allow certain things to slide, but keep in mind, when one employee receives preferential treatment others may expect to receive the same.
Not providing employees with a way to hone their skills is wasting a chance to improve productivity and job satisfaction. To stay ahead of the competition, employees need to be up-to-date on the latest developments in their respective fields. And now is the perfect time to help employees advance their skills.
During good economic times and bad, businesses need to invest in and support training and development efforts. Whether through continuing education, leadership or skills-based training, it’s important for employees to bring fresh ideas and new approaches to their jobs. It also can give low performers a boost, accessing new skills that otherwise would have been left untapped.
Whether a company has one or 50 employees, it’s important that every person knows his/her value to the business. Implementing a solid performance management system can help improve retention by providing employees with incentives to achieve written goals.
More than three-quarters of employees say one of the most important factors for happiness in their job is feeling valued, according to the 2008 World of Work survey conducted by Harris Interactive Inc.
Many employers may neglect to recognize this important component of employee relations, when really it can be effortless to implement. But it doesn’t have to be about giving away bonuses or prizes.
Even a simple verbal compliment can go a long way toward making employees feel valued, further boosting morale. Such verbal compliments are best given often and publicly. And, when things pick up again, companies can also recognize employees through financial incentives.
