Tag Archives: HR

Six Lessons Every Company Should Learn from Start-ups

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At Bedrock HR Ltd we work with a growing number of start-ups and we’ve been thinking about what businesses at any age and stage can learn from the new kids on the block. These are some of our thoughts which we hope you find useful……

  1. Consider different employment types: Zero-hours contracts can come with a bad reputation, but in some cases they can really help fill a gap in your team, particularly with professionals looking for flexible employment; or local parents with young children who need a few hours a week. Timewise is one example of a marketplace matching businesses seeking part-time talent or try local Facebook groups of Gumtree for local resources.
  1. Grow with direction and purpose: Don’t fall into the trap of hiring just when things are busy and your team seems too small to cope. Make sure each new-hire fits with your longer-term strategy, your team shape and skills that you already have. Also consider the paths for promotion for the people you already employ, what future do they have in your company.
  1. Demand flexibility but give people some boundaries: People need to be flexible in their roles, but clarity on their responsibility is still important. As a minimum, make sure each employee has 5 key responsibilities; a long-term goal, a short-term goal and clarity on what they deliver themselves and how they deliver through others. 
  1. Be innovative with your support functions: when you’re small you don’t need in-house HR, IT or accountants and there are lots of people offering outsourced professional solutions to save you money. But you’ll also be surprised by the other favours you might be able to pull in from your networks, like PR, marketing or events management. Local business networking groups like BNI or local chambers of commerce are a good place to start. 
  1. Have an ideas culture, but also know when to make decisions one of our clients gets this just right. They have an open-dialogue in workshops that involve the whole team, but at other times they’re clear that some decisions are made just by the senior leadership. Your team will thank you when they’re not asked for an opinion on everything!
  1. Don’t neglect development: it’s tempting in start-ups to run as fast as you can for as long as you can. But to be sustainable, you have to stop and give energy to training and team-work. And this isn’t just for junior staff – CEO’s need development too. Consider using a coach or mentor if you’re a CEO, and find someone who you trust to challenge and support you when you’re feeling frazzled.

Bedrock HR Ltd works with businesses at all stages, typically with between 5-50 employees to provide a cost-effect outsourced HR solution. For a free initial consultation please contact us via www.bedrock.co.uk

 

 

Small Business Entrepreneurs: 5 Steps for Running Your Own HR Department

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Turning a small business venture into a successful, profitable machine is a difficult thing to achieve.  According to the U.S. Bureau of Labor Statistics, 34 percent of new business ventures fail within two years and 56 percent fail within 4 years.  Assuming a business venture is properly planned and funded, the single biggest error that small business owners make is neglecting management.

Things like managing payroll, hiring employees and tracking their performance, taking the proper steps prior to terminating employees and complying with local, state and federal laws may seem like tasks better suited for large companies.  But if entrepreneurs wish to become big business owners, they should act like a big business owner from the outset.

1. Create an Employee Handbook

An employee handbook is one of the employer’s best tools to inform employees regarding workplace policies and procedures, prohibited conduct, potential grounds for termination, clarification of employee status and handling of grievances.  Small business entrepreneurs may have rules in mind, and they may even have conversations with employees regarding workplace rules.

Without a handbook, however, employees could argue that they were never properly informed of policies and procedures, making it more difficult for employers to justify discipline or termination based on violation of the rules.  Small business entrepreneurs should strive to create an employee handbook, regardless of the size of their workforce.

2. Don’t Hire Bad People

This seems straightforward enough, but many small business entrepreneurs are unfamiliar with the tools at their disposal to identify candidates with skeletons in their closets.  Employee background checks are essential toward bringing the right people into the company.

These checks may include a review of an applicant’s criminal history, credit history and references.  In so doing, however, business owners must comply with a litany of federal and state laws controlling how such checks should be performed and what information is permissible for them to acquire and use in the decision-making process.

3. Set Up an Employee Training and Discipline Program

While entrepreneurs need to hire the right candidates, they also need to retain the right employees and discipline the right employees. Proper training initiatives can result in increased productivity and retention, reduced turnover and the need to spend valuable time and money hiring replacements.

Similarly, performance improvement plans, applied fairly and consistently to employees, can produce positive outcomes or, where employees are unsalvageable, lay the groundwork for lawful discipline or termination.

4. Manage Payroll Like an Accountant…with a Law Degree

This is a complex area of the law, but the complexity is no excuse, even for inexperienced entrepreneurs.  Employers are obligated to pay their employees in a timely manner, deduct and remit the proper taxes to local, state and federal authorities, report accurate information and account for benefits.  Thankfully, automated payroll systems exist to take much of the guess work out of this process, but small business entrepreneurs must familiarize themselves with the regulations and take steps to implement procedures to comply with the law.

5. Don’t Act in Haste; Build a Case

Inevitably, employers will need to take action against problematic employees, whether the action is warning, suspension or termination.  In some cases, however, a hasty response can create additional problems for the employer, resulting in costly, time-consuming litigation.  To guard against this possibility, employers must fully and contemporaneously document all instances of employee misconduct, warnings, progressive discipline and the results of internal investigations.

When employers have built up evidence to substantiate a decision to warn, suspend or terminate, they must still be cognizant of state and federal laws that protect employees from discrimination or retaliation.  Only after employers have reviewed the evidence and the law should they take action.