Running A Better Small Business: HR Management

HR management is a crucial factor in the success of a small business. Employee turnover is incredibly expensive and time-consuming, so making the effort to start off on the right foot is a key to success. HR management is no easy task, but it is completely feasible when you start with the mindset that your employees are your most important asset. Keep in mind, there are tons of great resources out there for small business owners, so you don’t have to go it alone. Here are the key points for improving your HR management:

• Hiring. In the rush to hire, small businesses often go through a hurried hiring process that fails to bring in the best talent. Creating a clear, thorough, and detailed hiring process is the first big step in better HR management. This means writing clear job descriptions that include important and accurate information about the job at hand. Bring one or two of your current employees in on the hiring process to help you make this crucial decision.
• Onboarding. After you have found a person who is a great fit for your small business, set aside quality time for onboarding. One of the biggest HR management mistakes is made at the very beginning of this budding relationship. If there is training needed, make sure there is ample time for a complete training session. Additionally, if there are forms to sign, workstations to set up, supplies to gather, people to meet, etc., make sure there is plenty of time to cover everything properly. Having a stressed and confused employee on day 1 does not bode well for anyone.
• Handbook. Part of the onboarding process should be spent reading the employee handbook. If you don’t have one, make one! A rookie mistake in HR management is not having an employee handbook but still expecting everything to run smoothly. Keep an updated handbook available to all employees (this can be kept online), making sure they understand all of the business policies. As new things come up, you may need to develop new policies or adjust current policies to adapt.
• Evaluate. An unfortunate reality of owning a business and having employees is the inevitable performance or behavioral problems. It is important to both the employee and you, the employer, to have documentation of any problems that arise. Make sure you have a clear evaluation policy outlined in your handbook, with room for employees to correct problems or seek assistance when necessary.
• Law. From accurately classifying your employees to dealing with health insurance and compensation, take the time to know the law. Stay informed about changing laws and regulations and don’t be afraid to hire a lawyer to help. Taxes are a complicated part of owning a business and hiring employees, and we know how busy business owners are every day! Hiring an experienced lawyer now could save you headaches and trouble later.

Whether you started your own business or bought your small business, HR management skills are essential to everyone’s success. Are you in the market to sell your small business or are you looking to buy a small business in another industry? Sunbelt Business Brokers can help with both! As the world’s largest business brokerage operation, we have the people and the resources to ensure a quality experience for our clients.