4 Small Business HR Tips for Owners

4 Small Business HR Tips for Owners
Reading Time: 3 minutes

Author : Timmothy McDunnah

There is a common misconception in the business world that it is only the small businesses that may fail to face Human Resource challenges. In the real world, it has been found that even a small business can find it hard to hire, create or maintain a team of employee that complies with the laws and regulations. This is indeed very true. On the other hand, the number of employees does not matter and as such, careful planning and the execution of the plan is very crucial in order to realize optimal human assets for a small business. The following are the 4 small business human resources tips for owners.

1. Understanding the importance of laws and regulations
From the day and an employee is employed, there are always confusing laws and regulations governing the employee payroll, discrimination, harassment and termination. All this aspects must be adhered to; therefore, the small business owner must always seek the services of a lawyer in order to avoid constant wrangles and legal battles involving the employees. This is given by the fact that laws and regulations tends to favor the employees and may be a setback to a small business when a case is filed and executed in the courts of law.

2. Keeping the records up to date and consistent with the payroll
Normally, it is good for a small business owner update their records and consistent with the employee payroll. This is given by the fact that the Human Resource professionals and tax authorities usually make a follow up on these records. Whenever an inconsistency is found, it will be another setback for a small business because of ensuing law suits. Therefore, it is very important a small business owner to be updating the employee payroll every time a payment is made so as to prevent any legal battle that may be initiated. When all important records are made and updated, it will be very easy for the business to retrieve whenever it is needed to counter a false claim.

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3. Appraising the staff regularly
An effective appraisal system should be created for a small business so as to allow a realistic, but also challenging Human Resource objective. A small business owner should initiate frequent reviews in order to identify those objectives and give insights on when to start training developments to enhance the quality of the workforce. In many cases, a small business owner may need the services of a middle manager so as to accomplish this task.

4. Motivate and encourage employees
It has been found that well motivated and encouraged employees are the effective assets to a business. Motivation and encouragement are established through the creation of interesting and conducive work environment. The environment should be very flexible accompanied with incentives and recognition programs in order to boost their morale. While several financial rewards have their place in a small business, these businesses will benefit from non-financial awards to a great extent and eventually cultivate advancement, excitement and loyalty within the small business workforce.

Generally, small business owners should create very conducive environment for their workforce. Moreover, Human Resource strategies may help the small business to realize the full potential given the fact that the employees are satisfied with the efforts of their employer to meet their needs.


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