HR managment issues vital for small firms

Most entrepreneurs do not go into business to be pseudo human resource managers. However, handling the people aspect of your company is critical to attain sales and profit goals. To be effective, seven personnel functions must be performed.

?Recruiting and selection. Finding candidates is a major challenge because of the low unemployment rate. Start using creative techniques such as networking, the Internet and placing job openings with organizations. Think out of the box and you will get quality applicants.

To make the right selection decision, determine the education, experience and personality required to be productive in the position. Spend long enough in interviews to figure out if they possess the credentials you desire.

Avoid costly lawsuits by knowing the employment laws regarding legal and illegal questions. If you feel you are in over your head, seek a professional consultant. Who you hire and how you hire will make or break your business.

?Orientation. Specify what your new employee needs to know about the job and corporation. Spend whatever time is necessary to ensure they are completely instructed.

Otherwise, you will spend even more time down the road dealing with the problems that could have been easily avoided. Be sure to review duties in detail, along with your perception of acceptable performance.

?Employee handbooks. Every business, regardless of size, needs a written list of company policies and procedures. Typical areas to cover comprise benefits, attendance, dress code and employment laws. Include a disclaimer stating the handbook is subject to change, not all-inclusive and not a contract guaranteeing permanent employment. Have a form to sign that states the booklet has been read and your rules are understood.

?Retention. Earnings, customer service, morale and your sanity will be affected by too much turnover. You can increase retention by hiring good associates, providing adequate training, supervising exceptionally, ensuring subordinates are satisfied and furnishing competitive salaries and benefits.

?Performance evaluations. Analyze the performance of your workers yearly. Assess the degree to which they met your expectations in fulfilling assigned areas of responsibility.

Consider if they showed the character traits important for effectiveness in the job. Base their raises on the results.

?Discipline. Immediately address inap-propriate employee behaviors. Focus on the facts and assist them in turning around their conduct. Follow up often. Identify the number of chances you will provide. Provide formal counseling if they choose not to change. Make them aware of the severity of the situation. Be direct and honest without attacking the individual personally. Document all discussions.

?Termination. Missouri is an at-will employment state. You can fire anyone at any time for any reason, as long as you do not violate a law or contractual agreement. For example, you cannot fire someone because he or she is a minority, because of his or her religion, race, age, gender or disability, or because she is pregnant.

Depending upon the size of your staff, all of the laws may not apply to your organization. It is important to seek advice on termination because of the frequency of litigation concerning employment issues. The cost of one lawsuit could destroy your business.

Good, well-trained people who know your expectations lead to good business. Taking care of the people you employ, including getting rid of bad apples, creates low turnover. Reap the benefits of increased revenue and decreased headaches by properly managing your human resources.

(Lynne Haggerman is president/owner of Haggerman & Associates, an employment, management training, human resources consulting, and outplacement firm.)