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.
Source: HR Support Center