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HR/ADMINISTRATIVE

Administrative/HR overlaps a bit when it comes to getting organized and systemizing your operation. Some of the things we will cover in this zone are employee emergency forms, employee warning forms, vendor forms and basically all the paperwork and forms that you should be using to make your operation more efficient and profitable. It also protects you from disgruntled employees in the event that you ever encounter a situation like that, which hopefully you never will. First and foremost, KEEP EVERYTHING IN WRITING! In the unlikely event that you ever have to go to court, you will be always be covered so long as you have everything in writing...first, second, third warning then termination...I realize we’re starting off with a negative example, but it’s reality. Bottom line is...just have all your I’s dotted and T’s crossed.

So here we are, “Getting organized”...what does this mean? What will we cover? Emergency contact, employee evaluation, vendor forms, employee written warning forms and all of the paperwork required for interviewing, hiring, sustaining and firing. In the Extra Point Zone you’ll find several downloadable templates that will be helpful for you to use in this area of your business.

Human resources is probably one of the more complicated aspects of running a small business. The complexities of working with people don’t fit nicely on a spreadsheet. Yet HR is incredibly important; employee salaries and benefits make up a huge chunk of your operating expenses.

Your employees are one of your greatest assets, always remember that. You must protect and manage that asset.

What Is Human Resource Management?

Human Resource Management (HRM) deals with your employees, whether in regards to recruitment, management, or other forms of direction and assistance. HR will often be in charge of (among other things):

  • Hiring
  • Performance management and reviews
  • Employee development, motivation, and training
  • Safety and wellness
  • Benefits
  • Communication between employees and/or management

HR carries a big responsibility. They have a huge effect on the culture and environment in your workplace, setting the tone for how employees communicate, settle disputes, and work with each other. Some small businesses prefer to outsource a large component of human resources, but there is no getting around human resources completely.

Human Resources: The Three Basics

HR is rife with laws and regulations, which is part of why small businesses often put off dealing with it. Generally, for businesses with fewer than 50 employees, there are three basic things you must implement to cover the bases, according to HR expert Jack Hayhow.

1. Employee Files

You must keep three specific files for each employee in your business. These files are:

  • I-9 File: This form is used by the U.S. Government to identify and verify that your employees are eligible to work in the U.S. Keep all of your employee I-9 files together, in one file, instead of under individual employee names.
  • Employee General File: This is a file you create for your own benefit. It contains any documentation associated with that employee that you’ve collected during their time with you. This includes resumes, reviews, disciplinary action, training verification, evaluations, W-4 forms, payroll details, and so on. You’ll use this file often.
  • Employee Medical File: These files will contain notes from doctors, disability information, and any medical information that you have on an employee. Because you are dealing with medical information, you must protect and secure these files from others. That is why these are separate from general files. Be sure to keep them in a locked and secure place.

2. Employee Handbook

Having an employee handbook is a must. Your handbook serves two important purposes: letting your employees know what you expect of them, and protecting your business in case there is a dispute.

An employee handbook can be as simple or as complex as you want, but there are some general approaches, depending upon the nature of your business, that you need to consider. According to the Small Business Administration, your handbook might include:

  • NDNA: Some industries will benefit from having employees sign non-disclosure agreements, but it isn’t applicable to all businesses. If you have trade secrets to protect, use it.
  • Anti-Discrimination Policies: If your business is in the U.S., discuss how you will comply with the Americans With Disabilities Act, as well as with other employment discrimination laws.
  • Safety and Security: Lay out your policies on how you will keep employees feeling safe at work, both physically and emotionally. U.S. businesses should discuss compliance with OSHA, as well as your own policies on bad weather and emergency situations, video surveillance, and so on. You should also include what you expect from your employees in this regard, including using passwords on computers, locking doors, using mobile devices to take photos of co-workers or in the office and publishing those photos online, or reporting threatening behavior.
  • Compensation and Benefits: Define the benefits that you provide your employees, both those required by law and others that are unique to your business. Let them know how to receive the benefits, and what is required of them. Outline salary or compensation levels, and what it takes to get there.
  • Work Schedules, Vacation, and Leave: Outline your business’s policy on schedules, absences, lateness, vacation and leave, absenteeism, special requests, and so on. If you allow telecommuting, indicate clearly what is acceptable. Even if you have a “flexible” work schedule, you need to write down any expectations you have of your employees.
  • Standards of Conduct: This might include dress code, behavior, online and computer use during work hours, use of mobile devices during work hours, ethics, legal aspects, and other similar topics. Outline the repercussions of breaking the standard of conduct so employees see it in writing. This is necessary if an issue arises later.
  • General Employment Information: Your business will have its own policies and procedures apart from what the law requires. Clearly define what your policies are on work ethic, promotions, employee reviews, termination, referrals, employee records, and so on.

Be sure your employee has received a copy, reads it, and signs a statement acknowledging that they received, read, and understand the employee handbook. Put that statement in their file. Make a copy of the handbook, either digital or paper, readily available to all employees for reference when they need it.

3. Display Required Posters

Depending on the laws of the country and/or state your business is in, you may be required to post information in an easily accessible place. These vary from place to place, so you will want to work with a local government agency or legal counsel to make sure you have met the requirements. There are also companies that provide packets of posters depending upon your location to help make this process easier.

Human Resources Mistakes To Avoid

There are five common HR mistakes businesses make, according to author Margaret Jacoby. These mistakes can cost your small business in the long run, both in money and wasted time.

  1. Wrong Hire: Small businesses fall victim to filling open positions with any person they can. They don’t have the money or ability to do extensive background checks or hiring procedures. There’s no other way around it: the wrong person will cause problems and eventually have to be replaced.
  2. No Job Definitions: Business culture now seems to like the idea of “open ended” job descriptions, but you’re better off telling your employees specifically what you expect of them. You can’t possibly hire the right person if you don’t know the specific job you want them to do.
  3. No Performance Documentation: All performance reviews, meetings, and issues need to be documented, whether good or bad. If there are performance problems, discuss it with the employee, outline an improvement plan, and document it. You’ll need this if you end up firing an employee, or you put yourself at risk for legal action.
  4. Ignoring Employment Laws: You are responsible to follow the employment laws where your business is located. Ignorance or purposeful disregard will not protect you from problems that may arise.
  5. Improper Classification: Does your small business use contract employees? Are you sure you are complying with the laws in regards to how you’ve classified them? Many businesses use contract employees to save money and headache, but actually treat them as if they were full or part time employees. The IRS has strict guidelines that could come back and haunt you.

Mistakes like these set you on a serious path towards big problems.

Human Resources And Technology

Technology has changed the face and scope of human resources. Online and social media activity of employees has added entire new categories of rules and restrictions for small businesses, and opened the doors to understanding employees more than ever before. Check out their social media activity, you’ll be surprised what you can learn about your employees.

Human Resources: Basics

HR is all about laws and regulations, which is part of why small businesses often put off dealing with it. Generally, for businesses with fewer than 50 employees, which most of you are, there are a few basic things you must implement to cover the bases.,

According to HR expert Jack Hayhow...

1. Employee Files

You must keep three specific files for each employee in your business. These files are:

  • I-9 File: This form is used by the U.S. Government to identify and verify that your employees are eligible to work in the U.S. Keep all of your employee I-9 files together, in one file, instead of under individual employee names.
  • Employee General File: This is a file you create for your own benefit. It contains any documentation associated with that employee that you’ve collected during their time with you. This includes resumes, reviews, disciplinary action, training verification, evaluations, W-4 forms, payroll details, and so on. You’ll use this file often.
  • Employee Medical File: These files will contain notes from doctors, disability information, and any medical information that you have on an employee. Because you are dealing with medical information, you must protect and secure these files from others. That is why these are separate from general files. Be sure to keep them in a locked and secure place.

2. Employee Handbook

Having an employee handbook is a must. Your handbook serves two important purposes: letting your employees know what you expect of them, and protecting your business in case there is a dispute.

An employee handbook can be as simple or as complex as you want, but there are some general approaches, depending upon the nature of your business, that you need to consider. According to the Small Business Administration, your handbook might include:

  • NDNA: Some industries will benefit from having employees sign non-disclosure agreements, but it isn’t applicable to all businesses. If you have trade secrets to protect, use it.
  • Anti-Discrimination Policies: If your business is in the U.S., discuss how you will comply with the Americans With Disabilities Act, as well as with other employment discrimination laws.
  • Safety and Security: Lay out your policies on how you will keep employees feeling safe at work, both physically and emotionally. U.S. businesses should discuss compliance with OSHA, as well as your own policies on bad weather and emergency situations, video surveillance, and so on. You should also include what you expect from your employees in this regard, including using passwords on computers, locking doors, using mobile devices to take photos of co-workers or in the office and publishing those photos online, or reporting threatening behavior.
  • Compensation and Benefits: Define the benefits that you provide your employees, both those required by law and others that are unique to your business. Let them know how to receive the benefits, and what is required of them. Outline salary or compensation levels, and what it takes to get there.
  • Work Schedules, Vacation, and Leave: Outline your business’s policy on schedules, absences, lateness, vacation and leave, absenteeism, special requests, and so on. If you allow telecommuting, indicate clearly what is acceptable. Even if you have a “flexible” work schedule, you need to write down any expectations you have of your employees.
  • Standards of Conduct: This might include dress code, behavior, online and computer use during work hours, use of mobile devices during work hours, ethics, legal aspects, and other similar topics. Outline the repercussions of breaking the standard of conduct so employees see it in writing. This is necessary if an issue arises later.
  • General Employment Information: Your business will have its own policies and procedures apart from what the law requires. Clearly define what your policies are on work ethic, promotions, employee reviews, termination, referrals, employee records, and so on.

Be sure your employee has received a copy, reads it, and signs a statement acknowledging that they received, read, and understand the employee handbook. Put that statement in their file. Make a copy of the handbook, either digital or paper, readily available to all employees for reference when they need it.

3. Display Required Posters

Depending on the laws of the country and/or state your business is in, you may be required to post information in an easily accessible place. These vary from place to place, so you will want to work with a local government agency or legal counsel to make sure you have met the requirements. There are also companies that provide packets of posters depending upon your location to help make this process easier.

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