Human Resources Management for Startup and Growing Companies

HUMAN RESOURCE TIPS

As a business owner, you know your product, service, market, and customers. But sometimes one of the most challenging aspects of operating a business is employees. What keeps most employers up at night is employees. How do I keep them, how do I get them to perform, how do I terminate the bad hire? Can I hire them as independent contractors and not have to worry about the employment relationship?
What the employer needs to do is develop HR infrastructure. Most employers start hiring without having a strategy for Human Resources. They are focused on developing their business. Developing your talent management strategy before hiring the first employee protects the employer. Here are some suggestions for your talent management.

1. Strong Human Resource Management is crucial for growing companies studies show that HR issues are those most likely to keep CEOs up at night. Companies are always struggling with the question of when to consider outsourcing the many functions of an HR department. Mishandling such a strategic decision can prove costly.
   The cost of not getting Human Resources right can bankrupt your business. Getting expert human resources advice is critical to developing your organization. Your organization needs an employment brand… You need a strategy for attracting and retaining your talent. The strategy connects the performance and engagement of the company. Your employees are your competitive advantage. They represent how you compete in your market. Your talent strategy is critical to your ability to grow and execute your business plan.
   “ You need HR Expertise to navigate, the challenges of managing employees, being in compliance, and developing the HR programs that will keep your talent.”
2. Pay Employees Properly: Not getting employee’s paycheck right leads to employee lawsuits and the Fair Labor Standards Act violation. Knowing which pay practices apply to your organization is critical to compliance. It is very common for employers to go to the department of labor and follow laws that do not apply to them. For example, California’s employment law is more employee-friendly and this law is the rule employers have to follow. It is also becoming a trend for cities to pass strict employment laws that are more favorable to employees. San Francisco has a minimum wage of $10.75 mandatory medical coverage, sick pay, and just added transportation subsidy.
3. Recordkeeping: The employer is the keeper of the record. Collecting and maintaining records is essential for employers. There are many agencies that enforce employment law, FEHA, FSLA, OSHA, ADEA, IRCA, & EEOC. Employers need to have records that show hours worked, meal breaks, overtime paid. Usually, employers not having accurate records results in employers losing lawsuits.
4. Developing Employer Strategy for Talent: Talent is the face of the business, and the employer’s success is being able to attract talent and keep talent. This requires knowing where your critical talent is and who you compete with for talent. Why does someone want to work for you? How are you going to help them with their career?
5. Worker Misclassification: Employee or independent contractor? On the surface, the question seems rather simple, but it represents one of the “stickiest issues” for business owners. “Employers who improperly classify workers can run into serious penalties with regards to taxes, withholdings and overtime wages.” A common mistake is the misclassification of workers as exempt from the FSLA and not paying them overtime and keeping records. To be exempt the worker must meet strict rules of the exemption. There is a salary test, as well as duties tests.
6. Handbooks: From a Human Resources point of view are necessary regardless of size. The Handbook provides the employer with a set of rules and policies that all employees need to follow. It tells employees that the company does not tolerate discrimination or harassment. It provides an open-door policy for employees to resolve differences. It clearly explains that employment is at will! This is an important reference for different situations that may arise. The handbook should be updated as the number of employees increases and the rules changes based on the number of employees.
7. Awesome Culture: Providing awesome culture is a good way to start! Tech companies have changed the traditional workplace. Employees spend a lot of time at work and want to have a campus type environment. Work-life balance includes providing employees with perks such as fully stocked kitchens, game rooms, lunches, training, the opportunity to work from home, and flexible working hours. Developing an awesome culture helps employers attract and retain talent. Employees do not want to be thought of as an expense… Treat them like an asset!