5 Human Resource Challenges That Could Make or Break Your Small Business
Lyle D. Solomon, a principal attorney at Oak View Law Group, writes “there are no shortcuts when it comes to effective HR management.” His recent article in Entrepreneur Magazine summarizes some hefty challenges small businesses are facing when it comes to HR. They are:
1. Staying up to date on all current laws and regulations
To ensure you are keeping in compliance, regularly check in with local, state and federal regulations for any changes that may affect your business. Consult with an attorney who can give you advice on areas you need to improve on. They will help you avoid costly fees and reduce your likelihood for employee lawsuits. Our own HR expert, Lorein Brightwell adds, “Enlist the assistance of an attorney specializing in employment law and an HR professional... you wouldn’t want a podiatrist to perform your open heart surgery, would you?”
2. Having a solid plan for employee hiring and retention
Before interviewing, make sure you know what you are looking for. What kind of experience should the candidate have? Ask questions to get to know their personality and character. Getting along with your coworkers is just as important as their expertise. Competitive wages and benefits packages will also go a long way. Lorein says, “Comprehensive, well-written job descriptions are the best bang for the buck for any employer. A well-written job description captures the essential functions of the job, to include soft skills, like ‘works well with others’... it CAN be measured”
3. Having a vision for your company’s culture
Maintaining a current employee handbook is a great place to start. This provides a tangible reference for everyone to have access to the same set of standards. By updating the handbook annually with the most current labor and wage laws, you will also make sure your business is staying transparent and compliant. Lorein adds, “Everything published, every training given should have a direct tie to the company’s vision, mission, and values with integrated language that supports the desired culture.”
4. Neglecting conflict resolution
Neglecting this critical component of your business can prove costly. As part of further development, consider a management training program for all members of management over conflict resolution. This will help give you the necessary skills you need to develop communication guidelines and handle problems as they come. Lorein says, “Discipline comes from the same root word that gives us the word disciple. Intervene early and with a teaching, coaching, development manner to ensure the most success and acknowledgement of all parties in conflict.”
5. Having a clear understanding of the cost of benefits
Businesses with 50 (or fewer) employees can see if they qualify to participate in the Small Business Health Options Program (SHOP). This program was created as a result of the Affordable Care Act, allowing qualifying businesses to receive price breaks on health insurance. Participating companies partner together to pool risk, giving them the buying power of a larger company. It’s highly recommended you speak with a financial advisor to help you make the best decision for your company and employees. Lorein adds “A ‘hidden paycheck’ summary on an annual basis is a great way to enumerate ALL benefits and their associated costs to the employer. This annual statement is an impactful way to demonstrate to all of your employees your FULL investment in them... not just their wages.”
Hey, there’s nothing easy about effective and strategic HR management. That’s why the smartest employers look to PLB Resources as their guide to make sure the company is fully in compliance while building an AMAZING workplace!
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