Human resources can be the most difficult position to fill and execute for small business owners but its importance is undeniable. In many cases companies with few employees lack the resources to employee a full time human resources director, let alone complimentary employees to round out the department. Small business owners wear many hats and often times human resources is one of them. While you may not have a educational background on the subject matter, there are some steps you can take to limit legal issues and employee conflicts.

1. Document Everything

Having a paper trail for every aspect of the business including applications, employee records, disputes, partnerships and wages is essential in maintaining a healthy work environment and avoiding legal issues with past and current employees.

2. Hire Quality Employees

One of the best ways to avoid conflict in the workplace is to perform meticulous research on prospective employees. The hiring process is expensive and excessive employee turnover can be detrimental to your bottom line.

3. Issue Employee Handbooks

The first step in onboarding a potential employee is to provide them with an employee handbook and have them sign a release acknowledging they’ve read and understand it. This should be done on an annual basis company wide as well.

4. Provide Proper Job Training

Providing detailed and ongoing training to your employees will give them the confidence to do their job at a high level and give them a chance to come together as a team. Well-prepared employees are more efficient and have fewer issues in regards to performance.

5. Give Feedback

Before negative behaviors or poor performances spiral out of control it is important to give constructive feedback. Employees are an investment and you need to provide them with the training they need to succeed.

6. Clearly Post Laws And Regulations

Signage outlining labor laws are required to be posted in your small business. Other regulations, safety hazards and health warnings may be required depending on your line of business.

7. Offer Incentives

Offering incentives for going above and beyond will help you get the most out of your employees and create friendly competition. Make sure there is a level playing field and everyone has an equal opportunity to cash in.

8. Be Mindful Of Wages

Ensuring that your employees are receiving a fair wage for their work and that all vacation and sick time is kept track of accurately is essential in avoiding an HR nightmare. Additionally, paying your employees at a set time each week without interruption is key in maintaining top employees.

9. Create A Complaint Policy

Listening to your employees is one of the most important things you can do as a small business owner. Be mindful of all complaints and be sure to follow up until the matter is extinguished. Having a policy that allows employees to submit complaints or suggestions anonymously will help you to develop a healthy company culture.

10. Harassment And Discrimination Training

Training regarding harassment and discrimination should be conducted by a professional on a recurring basis as well as when issues arise. This will help protect your company and educate your employees on what is, and what is not, acceptable.

With over 12 years in the business, Quikstone Capital Solutions has proven to be a trustworthy and knowledgeable lender specializing in small business funding. Over 60% of our clients are renewals looking to continuously grow their business. Whether you need cash to cover unexpected costs or if you’re looking to make long overdue improvements, Quikstone Capital can help.

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