Opinion: Mom-and-pop firm needs employee manual

Do you have any tips on hiring and managing a young person? This would be this person’s first job. Also, I wonder if a three-person operation needs an employee manual of any kind? We have a so-called “mom and pop” business.

Judy Holcom, Nixa

Dear Judy:

Question No. 1: The costs of employee turnover are very high. Often, small businesses do not consider these costs and go through a number of employees in a year. When you think of the time you take in interviewing and training, not to mention any advertising, your costs can be quite high.

Whether your employee is successful or not will depend upon whom you hire. I will never forget what I heard an entrepreneur say to the speaker at a small business seminar: “I can’t take the time to do all this.”

The response: “If you don’t take the time, you might not have a business at all. What if you don’t check references and your employee steals on the job? What if you don’t put your company policies into writing and then fire your employee? What if this person goes to an attorney and sues you for wrongful termination? What if your representative is rude to one of your biggest customers and you lose the account?”

The entrepreneur said little for the rest of the meeting. He was too busy taking notes!

Here are a few steps to help in hiring someone in his or her first job:

• Have the prospective employee fill out an application. It is easy for small businesses to skip this, as it seems cumbersome. Did you know that an application is considered a legal document and that a signed application may be used in a court of law? You can obtain “generic” applications on the Internet or from an office supply store.

• Check at least three references. Even if this person comes to you from a referral source, it is worth your time to check references. New workers have probably had some kind of work in the past such as mowing lawns, volunteering or being part of a church youth group.

• Take time to interview. A recent high school graduate will be a rookie interviewee, but you need to find out how this person thinks and how they will represent you. Give the applicant a little problem solving. “If you were leaving XYZ business and you saw a $20 bill lying on the sidewalk, what would you do? If a customer began yelling and cursing at you, what would you do? What would you do if the phone rang while you were taking care of another customer?”

• Set up a probationary period, which can last one to three months. In this time you will be able to tell if your new employee is making the grade.

Once you have hired Mr. or Ms. Right, your next step is training. You need to remember that your new addition has no frame of reference. NEVER ASSUME. You will need to train by using examples and even doing mock interactions. “OK I am the customer. How would you handle it if I did so and so?”

Business etiquette is a learned art. You can obtain business etiquette quizzes on the Internet. It is worth your time to print one out and give it to the team member. The score will show you where you will need to lead and observe. You also need to act decisively if there is an incident. If your employee shows up dressed inappropriately, send him or her home to change immediately!

Question No. 2:

Yes, you do need an employee handbook but it doesn’t have to be long to be effective. You mentioned you are a “mom-and-pop” operation, but also asked about hiring. I assume that there is at least one person outside the family employed.

Your “handbook” can be just a few pages. It provides an excellent guideline for your employee(s) and a back up for you in case (heaven forbid) you are charged with wrongful termination.

An employee handbook should include:

• Vacation and sick time policy. This needs to be spelled out. Many companies are combining vacation with sick days. Sometimes vacation is accrued. At other companies it is awarded after a certain period of time.

• Any benefits such as medical, dental, life and disability. You should have a description of when someone is eligible. Details would be found in the various company descriptions.

• Grounds for termination. This includes drug and alcohol policy, theft, etc.

• Eligibility for a 401(k) or profit sharing.

• Dress guidelines.

All these steps are done for the benefit of both you and your employee. The more careful you are from the get go, the more money you will save in the long run.

Sinara Stull O’Donnell is a professional speaker and writer through Springfield-based SinaraSpeaks. She is the author of “Be The Star Of Your Life: Are You Ready For Your Close-Up?”