6 HR Tips For Small Businesses

When you are running a small business, navigating the HR side of the business can feel complicated and confusing. Small business owners often fall behind in employee development and HR practices due to their initial focus on sales and customer acquisition.  To help, we’ve compiled the top six human resources tips for small businesses:

1. Research Federal, State, and Local Employment Law

One of the biggest (and most expensive) HR mistakes that small businesses can make is not following all applicable employment laws. Your business is required to follow federal, state, and local laws. Such laws will govern required breaks, pay, paid and unpaid leaves, reasonable accommodations, employment classification for workers, safety standards, and more. They also vary by region, so if you have employees working at different worksites, it’s important to research applicable laws for each work location. Not complying with mandated employment laws can result in large fines or civil action.

2. Conduct Regular Performance Reviews

Performance reviews can be daunting for employees and employers, but don’t be afraid to schedule them! Performance reviews give you the opportunity to address performance concerns with employees and offer suggestions for improvement or additional training opportunities. However, they’re just as useful for checking in with your high-performing employees.

 It’s important that employees know that you notice and value their hard work. If an employee is doing well, use the performance review as an opportunity to recognize their efforts and understand their interests in career growth. Discuss what their interests are, what roles in the company align with those interests, and what they would need to do to get there.

3. Put Your Policies in Writing

Investing the time into putting your policies and procedures in writing can help prevent misunderstandings or confusion. A lot of small businesses fail to create or update written policies or employee handbooks due to time constraints, not seeing the necessity, or lacking the skill or legal knowledge to create proper handbooks. However, putting your expectations in writing helps new employees understand what is expected of them, gives other employees something to reference throughout their employment, and aids in disciplinary processes.

4. Develop an Organized Onboarding Process

A disorganized or rushed onboarding process starts new employees off on the wrong foot. Many small businesses lack a standardized onboarding process and that can lead to a lot of frustration and performance issues later on. It’s important to give employees the proper time and training to learn about company policies, best practices, what tools are available to them, and who to go to for help. Consider pairing them up with a mentor and be sure to have regular check-ins.

5. Don’t Rush Recruiting

Finding the right person to join your team can take time. Try to allocate enough time for the recruiting process. You can often save yourself some time and hassle by developing a thorough job description targeted towards your ideal candidate. Also allocate enough time to allow applications to come in, conduct meaningful interviews, and find the right fit rather than the first available person. The right candidate should have a combination of skills, experience, enthusiasm, and be a good cultural fit for your organization.

 If you need more time to find the right hire, consider using short-term labor to fill in the gap. Finding on-demand labor for your business shouldn’t be a hassle. Faveo makes hiring short-term help easy so you can operate with flexibility and efficiency.

6. Work to Retain Talent

Finding great employees can be challenging, so it’s in your best interest to retain them! Make an effort to keep staff happy and engaged in their job. One of the most important things that you can do is listen to employee feedback and address concerns quickly. Open communication goes a long way in building positive relationships with your staff. Of course, ensuring that you are offering competitive compensation and employee benefits also goes a long way. 

Doing a yearly employee engagement survey can be a quick and simple way to gain insight into how your employees are feeling about their work and the company. It can also offer an opportunity for them to anonymously provide suggestions, feedback, or express concerns.