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Posts Tagged ‘employees’
Web.com Small Business Toolkit: Scavado (Talent Search Engine)
November 28th, 2012 :: Maria Valdez HaubrichPart-Time Workers Can Mean Full-Time Headaches for Small Businesses
November 12th, 2010 :: Rieva LesonskyBy Rieva Lesonsky
Are you adding part-time employees to your work force as a way to pick up the slack without having to provide the salary and benefits that full-time workers require? Or are you shifting formerly full-time workers to part-time status—either because your business’s workload has dwindled or because you simply can’t afford to pay them their full-time salaries?
If you’re doing either of these things, you’re not alone. More companies are turning to part-time workers to save money. But what many small businesses don’t realize is that sometimes part-time workers can open the doors to full-time legal headaches.
Part-time workers are often viewed as a less complicated option to full-time workers. But in reality, part-time workers are subject to state and federal labor laws, just as full-time workers are. And because small business owners may think part-timers can be treated more loosely, they often don’t take the same precautions they would when dealing with a full-time hire.
Here are some things to consider before you hire a part-time employee.
- Understand how overtime regulations and rules regarding mandated meal and rest breaks apply to part-timers. For instance, in some states, an employee who only works one day a week could still qualify for overtime if he or she works more than 8 hours in one day.
- Know what benefits are triggered and when. For example, if a part-time worker logs a certain number of hours in a year, he or she may become eligible for being included in your company’s retirement plan or for leave laws such as the Family Medical Leave Act.
- If the part-time worker is the first employee you’re hiring, it’s especially important to know the right steps to take. For instance, hiring just one part-timer means you have to buy workers’ compensation insurance to cover that person.
- Understand how the addition of a worker affects your company’s size status and what that might mean in terms of rules and regulations. Adding one part-timer might put your company into a larger size category, which could mean you have to comply with certain federal or state rules you didn’t before. It could also affect your eligibility under federal contracting opportunities, such as whether your business is considered small or disadvantaged.
Small businesses often get into trouble with employees when they decide to “wing it.” Even if your company is tiny and you’re hiring just one part-timer, it’s important to create an employee handbook and decide on specific benefits and policies before you bring that person on board.
Work with your attorney and/or a human resources consultant. Employment law is complex and varies from state to state, so it’s best to get help from an expert in setting up your plan. If you start off on the right foot with your first part-timer, part-time workers can be a source of help—not headaches.
Image by Flickr user Phillie Casablanca (Creative Commons)
Google+What Your Hiring Process Says About Your Company’s Brand
November 4th, 2010 :: Karen AxeltonBy Karen Axelton
As the economy shows signs of picking up, more small businesses are considering hiring employees. If yours is one of them, take some time to think about your hiring process and what it says about your firm.
While many of us think of the hiring process in terms of how our businesses can be hurt (for instance, if we neglect to do a background check, we might hire a criminal), few of us think about the point David Lee makes in this ere.net article: Creating a poor hiring experience can permanently hurt your business brand.
When you’ve weeded down job applications and resumes to a precious few, what do you do before you contact those candidates? You probably go online and search their names. Well, you can be certain that job candidates are doing the same thing with your company. And if anyone they know has had a bad experience applying or interviewing at your company, they’re likely to share those thoughts.
Before you place your next want ad or start networking for candidates, take some time to assess your hiring process with an outsider’s eye. Here are some basic questions to ask:
- Is it easy to apply for a job? Your ad should clearly state the process by which people should apply. Specify who to contact and what to do (and not to do). This saves time on their end, and on yours.
- Are requirements clearly explained? Any applications, tests or projects that applicants need to fill out or complete before a live interview should be clearly explained. The applicant should be able to contact a specific person at your business with any questions.
- Are interviewees treated courteously? The environment of the interview gives applicants a glimpse into what it’s like to work for you. I’ll never forget one job interview where I was kept waiting for two hours in a chair next to the office copier while my future boss kept postponing the interview because she was swamped. That should have been a sign to me not to take the job.
- Do applicants receive a response? It’s simple to set up an automated response by e-mail. Everyone who applies should get at least this courtesy. But you’d be surprised how many companies take employees through several interviews, then never contact them again. One of my friends recently traveled to another state at her own expense for a second interview with a major company. After an intense series of interviews with a team of executives, the firm never contacted her again. Not only that, but her voice mail messages and e-mails went unanswered.
No matter how busy you are, taking time to treat job applicants properly pays off for your business’s brand. More than that, it’s simply the right thing to do.
Google+How to Build an Awesome Team
November 3rd, 2010 :: Monika Jansen
“If you could get all the people in an organization rowing in the same direction, you could dominate any industry, in any market, against any competition, at any time.”
Though The Five Dysfunctions of a Team was written for people working and leading teams within a large organization, the advice in this book is perfect for those of us who are building teams at our small businesses as we grow into larger businesses.
The author of the book, Patrick Lencioni, has learned that genuine teamwork is elusive because many organizations fall victim to five natural, but ultimately dangerous, pitfalls or dysfunctions. Instead of getting into those, I’m going to instead share Pat’s list of how members of a functional team behave:
- They trust one another.
- They engage in unfiltered conflict around ideas.
- They commit to decisions and plans of action.
- They hold one another accountable for delivering against those plans.
- They focus on the achievement of collective results.
Trust
Pat defines trust as the confidence among team members that their peers’ intentions are good. If there is full trust among all team members, they will focus their energy and attention on their jobs (rather than political maneuvering).
As you build your company, you can encourage trust by demonstrating vulnerability first and creating an environment that doesn’t punish vulnerability.
Conflict
Ideological conflict, or conflict that is limited to concepts and ideas, results in the best possible solution in the shortest period of time. It’s OK if that conflict is passionate, emotional and even frustrating.
As you build your company, let your team engage in conflict and allow them to resolve the conflict naturally. You should also continually set an example of appropriate conflict behavior.
Commitment
Commitment refers to both buy-in and clarity around direction and priorities. A team that is committed to a decision understands the priorities, embraces common objectives, and takes advantage of opportunities before competitors do.
As you build your company, be comfortable with the idea that the decision could be a wrong one. Push your team for closure around issues, and make sure the team sticks to its schedule.
Accountability
A functional team is not afraid to point out performance or behaviors of other team members that might hurt the team. When team members hold each other accountable, they demonstrate respect and high expectations for each other’s work.
As you build your company, encourage your team members to build accountability among themselves, rather than you imposing it on them.
Results
Results are really about outcome-based performance, which drives profits. To perform well and achieve great results, your team needs to be focused on specific objectives and clearly defined outcomes.
As you build your company, set the tone for results. Be selfless, objective, and reward and recognize only those team members who make real contributions to the achievement of the team’s goal.
Google+Non-compete Clauses: 5 Problems You Can Face
July 15th, 2010 :: Thursday Bram
On the surface, a non-compete clause sounds like a great situation: you can make sure that if your employees leave your business, there’s no way that they can take what they know to one of your competitors or start up a competing business of their own. But, unless you have a particularly well-written non-compete clause, it may not be as helpful as you’d like. Non-compete clauses have their problems, and it’s important to be aware of them from the start.
- It’s difficult to enforce non-compete clauses: If you do find out that an ex-employee has gone to work for a competitor (and you may not always know), enforcing the non-compete clause may mean taking the matter to court. The cost in time and money may not be worth the benefit of keeping someone out of the game. And, even if it is worth the effort, a court may not automatically uphold your contract.
- Your non-compete clause may not be specific enough: Unless a non-compete clause is very specific, many judges will rule that the clause is too broad. It can seem like a clause is meant to put a leaving employee in a position where he or she cannot work. Unless you lay out very specific geographic areas where an ex-employee cannot compete, as well as set out a length of time (typically less than five years) that the non-compete clause will last.
- Your non-compete clause may not apply: Depending on how the clause is phrased, a job somewhat similar to what a departing employee used to do may still be fair game. Because a non-compete clause has to be specific for it to be enforceable, that leaves a lot of room that a non-compete clause can’t cover in terms of related jobs.
- Geography is becoming more of an issue: Is an ex-employee who is running a business similar to your own online competing with you? What about if he’s not targeting customers in your area? There are still some questions that are growing out of the way that online businesses deal with locality.
- You may not know about all the competition: Depending on where your business is based, you may not know that your past employees have joined another company (that may compete with yours) until it’s too late. Trying to keep track of every ex-employee is usually just not practical.
If you’re having trouble drafting a non-compete clause or any other part of an employee contract, it’s worthwhile to consult a lawyer. It can be tough to adequately address these issues, especially if you don’t have a background in employment law. The fact that you have to think about them before you even hire an employee in the first place just makes things more complicated. It’s also worth considering that agreeing to leave out a non-compete clause can turn into a bargaining chip when bringing in a new employee. It may be worth offering up that bargaining chip in exchange for something more important (and more enforceable) in a new employee’s contract.
Image by Flickr user calbeeb
Google+Setting Security Standards for Your Business: 3 Questions to Ask
May 25th, 2010 :: Thursday Bram
I’m in the middle of handing off a fair amount of my work-load to a virtual assistant. One of the questions I’ve been struggling with, though, is just how much I should trust her with. Don’t get me wrong — I trust my VA. But I’m still figuring out what the security standards for my business should be. How much access should she have to my financial records? What does she need to have a password for? Heck, should I let her set her own passwords?
- How secure is secure enough? Determining the steps you need to take to protect your business can be a difficult process. Depending on the business you’re in, you may have legal requirements you need to comply with. On top of that, though, you need to make sure that your information and office are secure to your satisfaction. That can require a little research — for instance, what makes up the measures that secure your company’s information in an online application? That research can lead you to set a variety of policies about how your business handles security concerns.
- How do you make sure your employees, contractors and other help stick to your security standards? For many small businesses, the biggest security issues stem from people you work with — not hackers specifically targeting your business. Not only do the employees, contractors and other individuals you work with need to be trustworthy, but you also need to make sure that they follow the security policies you set. One easy-to-crack password can provide access to an entire company’s computer system, no matter how good the rest of your security is. You have to educate the people involved in your company and make sure that they are familiar with the steps you expect them to take.
- How fast can you change passwords, keys and security settings? In the event that something goes wrong, you need to know what it will take to remove a particular person’s access to your business. If we’re talking about someone who has access to your physical office, that can mean changing the locks. If it’s someone who has access to your information online, that can mean changing passwords. Depending on the type of worker you may be having problems with, you may need to bring in some outside help to make sure something is secure — I’ve heard unfortunate stories of less-than-trustworthy individuals leaving back doors or copying keys.
These questions are just a starting point in determining how your business will handle security concerns, but they are crucial to the process. No matter what type of business you’re in, you need to set security policies. Even if it’s just you in the office at this point, your security policies will help you decide what tools you need to grow and how to choose the right people to help you.
Personally, my VA and I are moving slowly, since I didn’t set my security standards in advance. We both get frustrated with the speed, but we’re talking about my business: I’d rather be safe than sorry.
Image by Flickr user Brad & Ying
Google+Ready To Grow Your Business? Know Thyself Before Hiring
March 29th, 2010 :: Monika Jansen
From Aidan Jones on Flickr
I recently met a super cool CPA. I do realize that statement is (usually) an oxymoron, but this guy is pretty much the opposite of what I expect a numbers-loving, detail-oriented accountant to look and act like. Jason Howell is one of the nicest, funniest, most friendly people I’ve ever met. He is full of energy, quick to laugh, and very engaging. In other words, he’s my kind of people. After talking to him a couple of times, I realized that not only is he really smart, he is also overflowing with advice for small businesses. We sat down one recent warm, sunny afternoon to talk about small business finance and money matters. This post is the first in a series of three based on the wisdom that Jason so generously shared with me.
The idea of hiring my first employee, full-time, part-time, or temporary, is exciting and scary at the same time. I’m getting busy enough that I don’t really have time for networking anymore. In the next few months, I should also be on the verge of turning away prospective clients. In this economy, that’s pretty cool. On the other hand, hiring an employee strikes fear into my heart. Just thinking about the additional paperwork (we all know how much I love accounting/finance/tax stuff) and time needed to manage others stops me cold.
Jason said that before you or I think about hiring, we need to think about our business and what we most enjoy doing. Simple enough! He said all small business owners have varying levels of expertise in following three areas:
- Technical skills. We are technically proficient at whatever it is we do. We might not love everything it is we do, but we are good at doing it.
- Management skills. Some of us are very good at delegating responsibility and leading and managing others. You can hand over the aspects of your business you don’t enjoy to focus on what you do enjoy.
- Sales skills. Some small business owners think very strategically and are totally sales-focused. They have a long-term vision of how they can grow their company, and they are good at selling their company’s products and/or services. These people live for networking and closing the sale.
When you’re ready to hire people, simply figure out which skill it is you enjoy the most. Is it doing the work, managing others who will do the work for you, or networking and selling your products and/or services?
If you enjoy the technical aspect of your work…Hire a salesperson to network and drive sales. Train the heck out of that person so they know your business inside and out. They need to have several elevator speeches ready for different audiences and have the charm and persuasive skills to set up meetings and close deals. They will be out and about constantly, leaving you time to focus on doing what it is you do.
If you like managing others…Replicate yourself. Hire people who have the same and/or complimentary skills and pass work over to them. You’ll still get to do some technical aspects of your business if you choose—the ones you like doing best. Say you’re a bakery owner. You specialize in artisanal breads—it’s what you love doing and what you’re known for—but you also make pastries, which you don’t enjoy as much. Employee A can help you with the bread baking, while Employee B can make the pastries.
If you’re a born salesperson…Find technicians to do whatever it is your company does. This will allow you to be out networking, selling, and closing deals.
Google+Small Business Success Index — Workforce Dimension
March 2nd, 2010 :: Thursday Bram
According to the Small Business Success Index, small businesses are scoring, on average, a C+ when it comes to workforces — but that grade is trending upwards. Many small businesses are facing staffing issues as a direct result of the poor economy. Many small businesses have reported having to take steps like reducing employee benefits, shortening the work week or even reducing staff in response to the recession.
Morale
Despite the workforce difficulties facing small businesses recently, most remain moderately successful — few struggle to keep employees productive, especially in light of the high unemployment rates. Those businesses in a position to hire have no trouble finding the right employee. While employees in businesses that are struggling may experience lower morale, many small businesses are in a position to find out just how efficient they can make their businesses.
You may find that your workforce is stretching itself to cover projects with fewer staff members. While not all methods that you use to cover gaps in your business will be sustainable in the long-term, they can be useful in determining how to make your business more efficient overall. It also offers up opportunities to refine and focus your attentions on the most important aspects of your business.
The uncertainty surrounding many jobs right now does mean that keeping employees updated and working with them to improve morale is key for many small businesses. If you’ve been cutting back, it’s especially important to allow employees the opportunity air concerns — you may not be able to resolve them, but even a simple conversation can improve morale. No matter how things are going for your business, your employees’ morale can make a difference.
Benefits
One of the most difficult areas for small businesses, at least when it comes to managing a workforce, is providing benefits packages that can attract and retain employees. Recently, the issue of benefits has become more pronounced. In order to respond to the recession, 29 percent of small businesses reduced employee benefits. It may not be an option to attempt to improve benefits packages in the near future, either.
However, you can make effective use of those benefits that you are in a position to offer. It may be worth discussing with your workforce which benefits are particularly important to them. If something like health insurance is crucial, your employees may be willing to drop other benefits in order to keep insurance in place. It’s also worth thinking creatively about which benefits you can offer. If you’re in the position to allow your employees to telecommute, for instance, that sort of benefit may improve morale without breaking your budget. You’ll likely find that your workforce is more willing to discuss questions like which benefits are necessary currently, especially with the numbers of small businesses finding it necessary to make pay cuts, ask employees to take furloughs or shortening the work week in order to reduce workforce costs.
Image by Flickr user Steve Rhodes
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