Approaching HR in small business

Hindsight is often 20/20. At least that’s what we tell ourselves when we’ve just been run over by reality. Maybe something didn’t work out (at best) or trust is broken (at worst). We are essentially saying, “it seemed really disconnected or blurry until suddenly, it wasn’t!” Now, I’m secretly kicking myself for not getting ahead of this or taking advantage of it sooner “but whatcha gonna do… hindsight is 20/20.”

Sometimes we experience the onset of our “should-have-seen-this-coming” moment as a gut feeling. You know you need HR components, but maybe your business doesn’t feel large enough. When a dedicated HR person isn’t necessary, this function can be overshadowed by revenue-producing activities. As a business grows and increases its employee base, being proactive can prevent regret – and risk! People are a critical part of your success are a resource that needs as much attention and care as any other detail in your business.

If you are not in a phase where additional support, there are a few simple ideas to consider for a healthy HR set up. In the end, your goal is to lay the foundation ahead of issues and opportunities. Otherwise, you might misstep and land on shaky ground.

A business owner needs to have clarity on their strategy (link) and who they are as an employer in the community, set clear boundaries that feel right for the team culture, and be confident in protecting their resources. Break those out and answer them individually:

Consider employer experience.

As an employer, you are a part of someone’s livelihood and a part of a larger. Consider how your brand reputation will be reflected in your reputation as an employer. What do you want your employees, their families, and their community to believe about you and your business? Write it out.

Decisions you make the for the HR function of your business should align with these ideals. This statement should become the anchor for several other critical (and sometimes mandated) components.

Set clear boundaries that feel right for the business and its culture.

This is where it starts to get to into the details. I’m talking boundaries set by clear policies and procedures. However, when it comes to boundaries you want to think about this in the right mindset. These details should focus on answering the question “How do I succeed as an employee,” rather than “ what are all the ways I might get in trouble.” People want to do a good job. They want to get paid for doing that good job. And they want to be recognized… it motivates them.

You will need to outline:

- Policies: safety, attendance, attire, etc.

- Performance appraisal process: annual reviews, promotion criteria, feedback expectations

- Accountability: disciplinary actions, rewards and recognition

By outlining your guidelines, employees are able to focus on work rather than trying to figure out how to work for and with you. Simple documents can set the stage for alignment as well as productivity.

Protect your resources by understanding requirements.

People also want to understand how their employer is invested in them. You will want to make sure that employees understand any resources that you might be extending to them. You can protect your resources by making sure that you check with state and federal employment requirements. Think about:

-Document retention: requirements for personnel records including basic employment, medical, and mandated training.

-Benefits offerings including Investments and/or discounts and incentives

-Company provided equipment and expectations

-Continuing education considerations

-Community involvement

Starting the HR function in your business with a solid foundation can pay off for years to come. Understanding that most business owners aren’t HR experts, working with a consultant can help get you navigate this new territory. Depending on the need, a consultant can serve a small or large a role in starting your HR journey. They can provide insight, pull from experience, and connect you with other resources (like legal counsel). Just remember, right now ‘figuring out HR’ might feel like a burden. But - looking back with 20/20 vision - it is time that will be well spent to prevent confusion, loss, and risk. If you are curious about how we could partner to set up your business for success, please contact me through LBD Facilitation and Consulting.