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

Labor Law Compliance Statistics - Infographic

Labor Law Compliance Statistics - Infographic

In 2020, the Department of Labor (DOL) released stats on total violations and penalties that would make your head spin. With record numbers being recorded, many HR and finance leaders wondered if their organization was at risk for penalties and violations. Here are the labor law stats you need to know: Equal Employment Opportunity Commission (EEOC) Last year, more than 72,000 discrimination charges were filed with the EEOC.Here’s a breakdown of the most common discrimination charges last year: Race Sex Age National Origian Religion Disability 23,976 23,532 15,573 7,009 2,725 24,238 These numbers add up to more than 72,000 because some charges allege multiple bases.States with the most EEOC discrimination charges: Texas – 7,448 Florida...

Remote Work Equipment Checklist

Remote Work Equipment Checklist

Equipment for Working Remotely If any company is serious about remote work long-term, they need to make sure that employees have all the equipment they need to stay as productive as they were the workplace. The basic equipment required for working remotely might be obvious, but there’s a long list of additional tools to consider. Download Remote Work Equipment Checklist Providing Remote Work Equipment for Employees The Coronavirus public health emergency meant that many Americans suddenly found themselves unexpectedly working from home. With limited time to prepare, employees have often found themselves getting by with just a laptop and an internet connection. But for remote work to be sustainable long-term, businesses need to consider...

Paycor’s PPP Dashboard: Track Your Paycheck Protection Loan Spending

Paycor’s PPP Dashboard: Track Your Paycheck Protection Loan Spending

UPDATE June 05: On June 4, the Senate passed the Paycheck Protection Program Flexibility Act, extending the ‘Covered period’ and reducing the percentage of loans that must be spent on payroll.After a successful application for a PPP loan, the next step is to spend the money. But you need to watch out—loan forgiveness isn’t guaranteed. The PPP Flexibility Act allows payroll protection loans to be used within a 24-week period and at least 60% of funds must be spent on eligible payroll costs.To help customers track these qualified expenses, Paycor created a PPP dashboard. Requirements for PPP Loan Forgiveness When applying for loan forgiveness you can’t simply claim “payroll costs”. All costs all have to be accounted for and you need to be...

Creating a Coronavirus 2nd Wave Contingency Plan

Creating a Coronavirus 2nd Wave Contingency Plan

While we’re all doing our best to keep ourselves, our businesses and our communities safe, there’s still a lot we don’t know about Coronavirus. The sudden shift to remote work and everyone’s efforts to maintain social distancing have made a big difference, but another wave may be inevitable, according to scientists. And if re-opening isn’t done right, scientists worry a second wave could come soon. Put Long Term Business Continuity Plans In Place Many businesses are in a fight for their lives and though focus will understandably be on short-term survival, it’s also crucial to plan for the future. A study by Gartner found that 42% of CFOs have no contingency plan for a second wave of COVID-19. However, even as America recovers there may...