Working With Employees
Employees add another layer of complexity to your business so think it through carefully before hiring. Hire the right people, train them well, keep them happy so they will stay, and be aware of taxes and legal requirements. Initially, you may want to consider hiring outside contractors or temporary help instead of employees. Make sure your decision to have employees fits in with your goals as outlined in your business plan.
Plan your hiring
Hire attitude...teach skills. Hiring employees is costly and shouldn't be approached casually. Write out a job description that indicates exactly what is expected of each employee. Interview several people and select the one you feel has the best qualifications. The majority of employers consider attitude of potential employees as the number one trait in their hiring decision. It is a good idea to have a 30 or 90-day trial period before taking someone on permanently. The wrong employee can cause a great deal of damage to your business.
Train employees well
Training is expensive but necessary. You want well-qualified employees who will do things the way you need them done. A well-defined company policy handbook plus a job description outlining duties, responsibilities, ethical standards, and criteria for success will be valuable. You may want to invest in your employees by sending them to special trainings. Small business owners should pay special attention to cross-training employees in areas other than those specifically defined in their individual job descriptions.
Retention
It's cheaper to retain employees than to hire and train new ones. After training your employees, you want to do what you can to encourage them to stay with your company. Employees who are satisfied, motivated, and involved with the business are more likely to remain. Keep the lines of communication open. Let your employees participate in the goals of the business and give them constructive feedback--positive as well as negative--on their progress.
Motivation
What can you do to motivate employees? It starts with your own attitude. You have to show that you value your employees and find ways to encourage their interest in the business. Training is one way to provide employees with confidence as well as to keep them challenged and involved. Encourage, respect, and listen to employee suggestions. Not only will they provide fresh perspectives, it will also give them a feeling of involvement. Regular evaluations can be an opportunity to sit down and talk to employees about their expectations as well as yours. Look out for employees with perks such as pension plans and wellness programs. Rewards are also important. This can be anything from highlighting an honored employee each month to financial bonuses to profit-sharing programs.
Legal requirements
Talk to your accountant and lawyer to make sure all the paperwork and legal requirements of having employees are met. Keep written records of personnel matters. There are many laws regarding working conditions, minimum wages, and safety considerations. Some of the areas you should consider include:
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