HR for Small Business: Top 4 HR Concerns for Entrepreneurs
HR for Small Business: Top 4 HR Concerns for Entrepreneurs

HR for Small Business: Top 4 HR Concerns for Entrepreneurs

Operating a small business can be overwhelming and difficult to manage. Entrepreneurs probably prefer to place their emphasis on developing a brand and sharing it with potential customers, but instead, they often spend more of their time struggling with HR issues that can cripple a business and halt momentum. Here is a list of HR concerns entrepreneurs face and tips to combat the potential problems.

Finding the Right People

Internal referrals are your best and most cost-effective recruiting source, so start by asking your employees if they know anyone who would make a good candidate for your organization. You may even want to financially incentivize current employees who bring you successful new employees. If recruiting internally does not work or does not yield enough volume, consider using your professional organization’s job listing service, rather than a general one. Also, be prepared to invest substantial time reviewing and sorting job applications and resume submissions when seeking prospective candidates. In your interviewing process, remember that the best predictor of future job performance is past performance. Don’t forget to run a background check as well as verify the candidate’s references.

Losing Top Performers

With the job market tipping toward top talent, many employers have expressed concern about losing their most valued and productive employees. While different surveys report varying results, generally the top five factors impacting employee workplace satisfaction are:

* the employee’s relationship with their direct manager,
* the employee’s salary,
* the employee’s benefit plans,
* the employee’s opportunity to use their skills and abilities, and
* the employee’s opportunity for advancement.

We recommend completing an audit of your workplace and giving yourself a grade on each of these factors as they relate to your top performers. You may need to consider making some adjustments to your organization’s pay structure, benefit offerings, management style, job duties and/or career planning based on the outcome of your workplace audit.

Being Sued by a Disgruntled Employee

This fear is always in the back of an entrepreneur’s mind. Always go above and beyond to ensure that your workplace is free from discrimination and harassment. Your best chance at successfully defending an employee lawsuit is to secure documentation that would prove to a reasonable person that the employee was treated fairly and consistently with company policy. Remember, juries are made up primarily of employees, not employers. Having the documentation to demonstrate that the company treats its employees impartially and consistently goes a long way in terms of reducing an employer’s exposure to liability.

Department of Labor Audits

It is crucial to stay informed on federal and state labor laws that impact your business. Performing internal HR audits is beneficial in preparing an organization for any claims or workplace incidents. It is also essential to have a Human Resources professional readily accessible to whom you may field your labor law compliance concerns. Complying with immigration laws, wage and hour laws as well as benefit laws is complex, but a knowledgeable HR professional will provide you guidance and ensure that your organization remains compliant.

Are you an entrepreneur looking for your own expert HR advice and assistance? Look no further than Paycor’s HR Support Center and HR Support Center On-Demand to address your concerns and mitigate compliance risks. Click here to learn more; we’d also love the opportunity to share the benefits in person.

Be sure to take our online HR audit! It only takes 2 minutes.


Related articles:

The Entrepreneur's Guide: 4 Ways to Use Technology to Grow Your Business
Why Do Small Businesses Incur So Many Payroll Tax Penalties?
An SBA Guide to Setting Up Your Payroll

Source: HR Support Center

More to Discover

2019 Compliance Changes

2019 Compliance Changes

It’s critical that you’re aware of all the tax changes that could affect your organization in 2019. This session will include frequently asked questions, an overview of federal and state withholding updates and trends we are seeing in areas of Tax and ACA compliance. Speakers: Arlene Baker and James Schwantes Arlene Baker is a Senior Compliance Analyst with over 40 years of payroll and tax experience. She’s a member of the National Payroll Reporting Consortium focusing on IRS compliance, and she’s been a member of the national and local APA for 25 years. In 2003, Arlene was awarded the Ohio Payroll Professional of the Year award. James Schwantes is a Compliance Analyst with a legal and tax background. Prior to working at Paycor in the...

Proposed Department of Labor Rule to Update Regular Rate Requirements

Proposed Department of Labor Rule to Update Regular Rate Requirements

In late March, the Department of Labor (DOL) announced a proposed rule to clarify and update the regulations governing the regular rate requirements under the Fair Labor Standards Act (FLSA). Unless exempt, an employee’s regular rate of pay is used to determine how much he or she should be paid for working overtime. The FLSA generally requires overtime pay of at least 1.5 times the regular rate for hours worked past 40 hours per week. The proposed rule details what forms of payment employers can exclude when determining an employee’s regular rate of pay. The cost of the following items would no longer apply: Tuition programs Discretionary bonuses Payment for unused paid leave Wellness programs, fitness classes, gym access, onsite...

FLSA Law Update

FLSA Law Update

What new cases and issues are arising regarding FLSA? We’ll discuss the change from a narrow interpretation to a fair interpretation of exemptions by the U.S. Supreme Court and what other courts and the DOL think of it. We’ll also discuss the recently reintroduced opinion letters and the possible increase in the salary level threshold. Speaker: Brian Dershaw BRIAN G. DERSHAW is a partner in Taft Stettinius & Hollister’s Labor & Employment practice group. Brian has broad experience serving as counsel for companies of all sizes. He has appeared in state and federal trial and appellate courts in discrimination, harassment, retaliation, wrongful discharge, non-compete, trade secret and contract litigation. Brian works closely with...

Taking the Guesswork out of Employee Pay - Part 1

Taking the Guesswork out of Employee Pay - Part 1

Deep Dive - External Equity and Market Pricing Feel more comfortable with how you determine employee pay at your company by learning how to align market pricing with your business strategy, understanding survey data and market pricing steps. Speakers: Christine Ippolito & Joanna Hall Christine Ippolito, SPHR, SHRM-SCP - Christine is the Founder and Principal of Compass Workforce Solutions, LLC, a consulting firm providing strategic human resource expertise to small businesses to reduce exposure and increase profitability. She has served clients in a leadership capacity for 25 years in multiple industries and environments within Fortune 250, venture capital and equity-backed companies, as well as privately held and family-owned...