Thursday, May 31, 2012

Marketing Methods & Vehicles 2: Provide Profitable Promotions

Promotion offerThis continues our series to increase profits through marketing methods and vehicles

Methods and vehicles is the 5th pillar of Bryan Waldon Pope’s the 7 Pillars of Successful Marketing. Methods are the processes (or procedures) that draw clients to your business, hopefully, to buy your product or service. Bryan outlines three methods: promotions, publicity/public relations, and advertising. Each one involves a different process. Today we will examine promotions.

Promotions Offer Something to Clients

Promotions are marketing activities that are designed to get the cash register ringing with a specific offer, a strong call to action, and a deadline. Those three elements create promotions.

The specific offer holds the key to a good promotion.

  • Your promotion may be directly related to your product or service. For example, a cosmetologist offers a free hair wash with the purchase of a perm.
  • A cross-promotion occurs when you offer a product from another company. For example, an auto mechanic offers a free meal at a local restaurant for those who get an oil change. Cross-promotions should provide as close to a balance as possible.
  • Your specific offer may have no relation to your own business or another one. For example, a certain retail, furniture store offers hot dogs and drinks to customers. The promotion brings people into the store without promoting another company and has nothing to do with furniture.

How to Construct a Profitable Promotion

A promotion is a popular marketing method that combines three important elements to create excitement and garner response. Those three elements are:

  • A specific, compelling offer should include a totally free offer rather than a discount
  • A timely and powerful call to action such as
    • “Call…”
    • “Come to the store to claim your…”
    • “Click here to receive your…”
    • “Join us at…”
  • A meaningful and compelling deadline
    • “You must claim your gift by this Friday”
    • “Offer only good for the next 4 days”
    • “Come to the store for you free hot dogs and chips this Saturday between noon and 3pm”

Saturday we will present how to increase publicity and public relations for your business

Tuesday, May 29, 2012

Marketing Methods & Vehicles 1: Overview

As Seen on TVThis begins a series on marketing methods and vehicles to improve your sales revenues

Last year we reviewed Bryan Walden Pope’s the 7 Pillars of Successful Marketing. One of the 7 pillars describes using various methods and vehicles in marketing. They provide variety to your marketing effort. Methods include promotions, publicity/public relations, and advertising. Vehicles include what you use to deliver your message. We will explore each of them in detail over the next few weeks.

Methods of Marketing

Merriam-Webster defines a method as “a procedure or process for attaining an objective”. You can summarize almost all the processes or procedures to invite people to your business or to purchase your product or service:

  • Promotions involve the process of enticing people to come to you by offering them a gift, sample, or something similar. Cross-promotions occur when the gift or sample you offer comes from another company you use to invite people to your company and theirs
  • Publicity/public relations use free stories or messages to raise an awareness of your business so that people buy your product or service. Publicity may also include paid events like sponsoring a community event or charitable cause.
  • Advertising follows the procedure of paying to place your message in front of potential, current, or future clients. You sculpt the message exactly the way you want it.

Vehicles to Communicate Your Message

Merriam-Webster defines a vehicle as a “an agent of transmission”. You transmit your message through a number of vehicles:

  • Print conveys your message visually through any printed medium: newspaper, magazines, fliers, mailers, coupons or more
  • Radio sends audible messages to potentially targeted audiences based on listening habits: rock, country, Latino, public radio, classical, or more
  • Television transmits your messages visually and audibly over the air: networks, locals, cable, or satellite
  • The Internet sends your message throughout the world using video, audio, print, interactive, and even games
  • Parties have become an increasing agent of transmission to market plastic containers, health products, kitchen products, clothing, and more

We will examine each in the next several posts.

Thursday we focus on marketing method of promotion and cross-promotion

Saturday, May 26, 2012

Human Resources 12: Avoiding Discrimination & Harassment Charges

discrimination in the workplaceThis concludes our series on human resource issues affecting your business. I wish to thank Dr. Lori Wadsworth for the content of this series.

Most business owners avoid discriminatory practices with employees or clients. Some remain unclear about which anti-discrimination regulations apply and when they do not. Regular changes require frequent updates.

Protected Groups Against Discrimination

Civil Rights Act applies to businesses with 15+ workers at least 20 weeks/year

  • No discrimination based on: race, color, religion, sex, and national origin
  • Relief if discriminated: legal costs, back pay, created by EEOC,

Griggs v Duke Power defined to two kinds of discrimination:

  • Disparate Treatment: direct discrimination, unequal treatment, prejudiced actions, different standards for different groups
  • Adverse Impact: indirect discrimination, unequal rules, decisions with racial/sexual consequences, same standards but different consequences for different groups

Gender discrimination of compensation was enhanced by the

  • Equal Pay Act prohibits discrimination for same skill, responsibility & working conditions
  • Pregnancy Discrimination Act of 1978
    • Prohibits discrimination of pregnancy, childbirth, or related medical conditions
    • Decisions about the welfare of future children left to parents not employers
    • Company’s responsible for OSHA standards & to warn employees of risks

Americans with disabilities act applies to employers with 15+ employees and:

  • Protects “physical or mental impairment that substantially limits employees in major life activities”
  • Requires companies to provide reasonable accommodations to help fulfill essential job functions

Other Rules and Regulations

Immigration and Control Act of 1986 covers employers with 4+ employees:

  • Prohibits discrimination based on national origin and citizenship
  • Unlawful to hire any unauthorized immigrant
  • Verify legal authorization to work with I-9 documents

Employers must prevent sexual harassment:

  • Quid Pro Quo: may not offer or refuse raises or promotions in exchange for sexual favors
  • Hostile work environment: frequency or severity of conduct, physically threatening or humiliating, interferes with work performance
  • Requirements: zero-tolerance, communicate to all employees, establish complaint procedure, act quickly to resolve problems, and provide training

Recent discrimination issues include:

  • English-only rules in the workplace
  • Discrimination based on sexual orientation and gender identity
  • Genetic information nondiscrimination act (GINA)

Tuesday we’ll explore methods and vehicles for marketing your business more effectively

Thursday, May 24, 2012

Human Resources 11: Employment-at-Will Issues in Your Business

Employment at willThis continues our series on human resources issues that affect your business. We recognize the contribution of Doctor Lori Wadsworth for the content of this series. We urge you to consult a legal professional before taking any action.

Some laws governing employment involves the nature of the contract between employers and employees. Unless you prepare a written contract or verbally imply a contract during the selection and negotiation phase of the employment process, your state laws may create a contract.

Pre-Employment-at-Will Rules

Some legal rules protected employees from harsh business owners. Protections outlined a disciplinary process of verbal and written warnings. It required business owners to establish a paper trail that documented reasons for termination.

Many times the rules protected employees from unjustified termination. Other times it prevented business owners from terminating employees that performed poorly or created problems in the workplace.

Employment-at-Will Law

Employment-at-will began with writings of Horace G. Wood in1877. He erroneously claimed that states had already established the at-will rule. Based on his writings several states implemented at-will statutes and decisions. To this day, you can find conflicting opinions both defending and criticizing the principle.

The American Journal of Legal History says “In almost every jurisdiction in the United States an employer can discharge an employee without notice and without cause unless the duration of the employment relation is specified in an employment contract. The employment at will rule has come under attack recently, but the rule is still generally applied to employees at all levels of work.”

Exceptions to Employment-at-Will

Some exceptions exist:

  • Employees represented by trade unions
  • Civil servants
  • Members of classes historically subjected to discrimination (CRA of 1964, ADEA, ADA)
  • Public Policy (Except in AL, DC, FL, GA, LO, MA, NE, NY, RI)
  • Implied contract (Except in DE, FL, GA, IN, LO, MS, MO, MN, NC, PA, RI, TX, VA)
  • Implied covenant of good faith (Except in AL, AS, AR, CA, DA, ID, MS, MN, NV, UT, WY)
  • Statutory exceptions (FSLA, NLRA, ERISA, CCPA, ELCRA, MCLA, MWPA,

Saturday we will explore discrimination legal issues that could get your business in trouble

Tuesday, May 22, 2012

Human Resources 10: Ending the Employment Relationship

Clearing Out Their DeskThis continues our series explaining how human resource functions may affect your business. I thank Doctor Lori Wadsworth for this information. 

Sometimes a disciplinary action does not create the improvements you seek. You may need to end the employment relationship. Sometimes you need to lay workers off to reduce costs.

Terminating or firing an employee  never feels good. You will probably find it a gut wrenching experience.

Most Common Manager Errors

  • Withhold the real reasons for termination
  • Failing to follow written policies and procedures
  • Failure to document employee’s misconduct
  • Withholding payment of employee wages

Effective Practices for Layoffs

The following will improve your layoff experience:

  • Plan thoroughly to identify who you need to layoff and how you will do it
  • Address the needs of those who be laid off
    • Retraining
    • Emotional impact
    • Severance pay, if available
  • Behave professionally

Prepare for the Termination Meeting

Your preparation will reduce problems with the termination:

  • Keep it private
  • Have documented warnings ready if the person contests your reasons
  • Prepare the exit letter explaining the reasons for termination
  • Print the final paycheck to give them at the meeting
  • Choose the right place for privacy, neutrality, and authority
  • Identify who should be present at the meeting (at least two representing the company, you need a witness)

Conducting the Termination Meeting

A few tips for the meeting itself:

  • Ensure you have a person to witness what happens in the meeting
  • Be prompt
  • Present the situation in a clear, concise, and final manner
  • Listen to them and don’t argue
  • Be empathetic and caring, but not compromising (remember you already gave them a chance through the discipline process)
  • Get them out the door, with their belongings, quickly

Some employees make it worse with angry or emotional reactions. Coping with their reactions requires your tact, patience, and wisdom.

  • 42% involved screaming matches
  • 24% sent negative mass emails on their way out
  • 12% vandalized or stole company property
  • 4% involved in physical violence
  • 52% of people who quit do so because a co-worker was fired or quit

Thursday we will discuss the impact of employment-at-will on your business

Saturday, May 19, 2012

Human Resources 9: Employee Discipline Issues in Your Business

Discipline an employeeThis continues our series on human resource issues that affect your business. We acknowledge Dr. Lori Wadsworth for the information included in this post. We also encourage you to consult with an HR or legal professional if you need more guidance.

You may find employees that fail to do the job you want done, do not fit into your team, or return a good investment on what you pay them. You may also encounter employees with persistent tardiness, absenteeism, or poor work ethic. As a result, you will probably need to discipline at least one employee in your business.

Reasons Owners Fail to Address Employee Issues

  • The replacement could be worse
  • The problem will go away
  • It won’t work anyway
  • You might be sued
  • Upper management won’t support you
  • You’re too tired and overloaded
  • You may not discipline or terminate right
  • It will be a lot of work
  • Hate conflict
  • It’s unpleasant

Guidelines Governing the Discipline Process

Effective recruiting and selection, training and development, job design, and performance appraisal systems remain the best way to avoid discipline issues. You discipline employees to reinforce standards or deter improper conduct. Four principles guide the disciplinary system:

  • Be consistent
  • Be fair
  • Consider the facts (avoiding hearsay or assumptions)
  • Document the facts, objectives, solutions, and actions of problems or infractions
  • Act on problems

Doctor Wadsworth outlines the following guidelines:

  • Set organizational goals
  • Establish rules for the organization
  • Communicate the rules to employees
  • Observe performance
  • Take appropriate discipline
  • Return to communicate the rules step if necessary)

Forms of Discipline

Progressive: follows certain steps to a conclusion: verbal warning, written warning, suspension, and then termination

Positive or Motivational Discipline: verbal reminder, written reminder, decision-making day, and termination.

Traits of positive discipline:

  • Focus in on future expectations
  • Remind employees of the standards and the need to meet them
  • Obtain the employee’s agreement
  • State the needed changes they must make
  • Emphasize that the responsibility lies with the employees
  • Develop a plan to comply
  • Express confidence they will succeed

Monday we will continue our review of human resources terminating an employee

Thursday, May 17, 2012

Human Resources 8: Enhancing Employee Productivity & Performance

Positive Employee RelationsThis continues our series on human resource issues that can improve your business. I wish to acknowledge Lori Wadsworth’s conceptual and intellectual contribution to these posts.

Our last post outlined a restrictive and possibly intrusive approach to employee relations. We discussed potential consequences of negative relations. Today we will focus on more positive and nurturing employee relations. We will explore improvements in productivity that may follow nourishing employee relations.

Employee Relations that Enhance the Relationships

Dr. Wadsworth describes three types of culture a business may choose to employ:

  • A culture of fear: the business motivates employees by fear of reprisal
  • Entitlement culture: employees assume they are entitled to work and benefits
  • Revitalization culture: where management and employees revitalize the effort

I liken these cultures to Dr. Lewin’s analysis of leadership styles:

  • Autocratic styles tend to develop a culture of fear
  • Participative or democratic styles tend to develop cultures of revitalization
  • Delegative or Laissez-Faire styles tend to develop cultures of entitlement

You may take the quiz linked above to discover your natural style. The best leadership incorporates a little of each of the three styles with an emphasis on participative.

Involve Your Employees in Collaborative Employee Relations

Smaller companies may involve employees more effectively than large ones. The owner or general manager knows a greater a percentage of workers, and interfaces with them more closely. Closer contact allows supervisors to recognize intrinsic (internal) or extrinsic (external) motivations—and reward employees appropriately .

I believe positive relations enhance performance better than restrictive or punitive relations. Positive relations grow when you involve employees in decision making processes. Lewin indicated that while you need to include all three traits, performance increases most when the participative style remains the dominant one.

National Performance Reviews’ Quality Management

The National Performance Review identify three barriers to productivity:

  • insufficient supervisor control
  • communication
  • planning

In addition, quality management improves when you:

  • Cut red tape
  • Put clients first
  • Empower employees to get results
  • Cut back to the basics

Small-businesses can act to resolve all of seven issues.

Saturday we will examine human resource functions involving discipline and termination

Tuesday, May 15, 2012

Human Resources 7: Restrictive (but Necessary?) Employee Relations

negative employee relationsThis continues our series on how human resources affects the success of your business. Once again, I recognize and credit Dr. Lori Wadsworth for her informative guidelines.

Some people think that employee relations from the human resource viewpoint focuses on controlling employees. Some of the current initiatives can alienate employees rather than build loyalty and commitment. Smaller companies cannot afford an alienated workforce as easily as a larger companies. You will find your balance between being careful and being caring.

Aspects of Privacy in the Workplace

Modern employee relations balances the needs and rights of the public, clients, the organization, and the employee. Some people advocate for less privacy in the workplace. They justify their position citing the rights and need to:

  • Catch theft or fraud by employees
  • Make sure company time is well-spent
  • Monitor and keep track of employees while they are at work

Advocates of privacy cite that respecting privacy:

  • Upholds the American Way of life
  • Builds trust in employer and employee relations
  • Prevents work from controlling you
  • Keeps the intrusion from going too far

No matter where you stand on the spectrum of privacy, recognize the possible outcomes that intrusions on privacy may create:

  • Resentment by employees, their families, and friends
  • A climate of fear and suspicion
  • Negative Morale
  • Increased turnover
  • Increased absenteeism
  • Reduced productivity
  • Expensive lawsuits.

Current Issues Receiving Increased Attention

The following employee related issues affect the workplace. I’ve linked some to sources of more information you can study:

To many people these policies seem harsh and even draconian. They may be, but may also be necessary—to an extent.

Thursday we will review positive action you may take to enhance employee relations

Saturday, May 12, 2012

Human Resources 6: Establishing a Benefits and Compensation Program

compensation and benefitsThis continues our series on how human resource functions can improve your business. I acknowledge the works of Dr. Lori Wadsworth for the content of this series.

Compensation involves more than what you pay. Compensation includes all the tangible and intangible rewards employees enjoy by working for your company. A good compensation and benefits program helps you identify and evaluate what you are offering your employees.

Deciding How to Compensate Yourself and Others

The objectives of your compensation plan:

  • Recruit qualified employees
  • Increase or maintain morale and satisfaction
  • Reward and encourage performance
  • Reduce turnover and encourage organizational loyalty
  • Remain equitable with internal and external positions

Legal issues governing compensation include: Internal Revenue Code, Equal pay act of 1963, Employee v Contractor. The Fair Labor Standards Act (FSLA) regulates:

    • Wage and hour issues, exempt and nonexempt classifications, minimum wage, overtime, and child labor provisions
    • White Collar exemptions for executives, administrators, professional or outside sales, doctors, lawyers, teachers, and computer employees

Strategic compensation tools include variable pay, team-based pay, skill-based pay, and short-term incentives. You may determine pay increases using single or flat rate (COLA), step-rates based on seniority, and pay for performance or merit increases.

Determining What Benefits You Will Offer Employees

Lori Wadsworth outlines some basic building blocks for a compensation program:

  • You attract good employee with benefits through indirect compensation
  • You retain good employees with contributions and co-payment programs
  • You motivate good employees with deductible and cafeteria benefit programs

Dr. Wadsworth provides the following list to help you determine what to offer:

  • Security benefits: workers compensation, federal unemployment, and severance pay
  • Retirement benefits: social security, pension plans, individual retirement benefit options such as defined contribution plans or IRA’s (you define how much you will match their contributions to savings account)
  • Legislated benefits: ERISA, COBRA, HIPPA and Patient Protection and Affordable Care Act of 2010
  • Time-off benefits: vacation, sick, holiday, and leave of absence pay
  • Insurance benefits: life and income protection and disability insurance
  • Other benefits: educational , flexible spending accounts, employee assistance programs, wellness programs, and other services

Tuesday we will discuss how to build stronger employee relations

Thursday, May 10, 2012

Human Resource 5: Orient New and Train Existing Employees

Orientation of employeesThis continues our series on human resource functions that could affect your company

Once you select your new employee, you want to give them the best start. A new employee orientation enhances production and decreases future problems. Unfortunately, most business owners neglect or provide inadequate orientation. Training existing employees enhances their performance and accelerates improvements.

Purposes of Training

  • Orienting new employee provides them:
    • History of the product or company
    • Organizational, team, and individual goals
    • Acceptable language used in the workplace
    • Organizational behavior, development, and politics
    • Significant people the new employee will work with
    • Define expected quantity, quality, efficiency, and effectiveness performance
    • Safety tips, procedures, locations, and documents
  • Training prepares existing employees to perform their current job
  • Development prepares existing employees for future jobs
  • Management training builds a corps of current and future managers

Assess the feasibility of training

  • Is training needed?
  • Cost-benefit analysis
  • Top-level commitment
  • What type of training?
    • Skill development
    • Cross-functional
    • Team training
    • Management
    • Safety/OSHA
  • Define the measurable outcomes of the training

Provide the needed training

  • Determine what training methods you want to use
    • On-the-job training
    • In-house seminars
    • Classroom instruction
    • Printed materials
    • Simulation and role-playing
    • Computer-based training
  • Computer- or Internet-based Training offer multiple benefits
    • Direct job relatedness
    • Self-paced
    • Global distribution
    • Standardized training
    • Availability
    • Individualized
    • Flexibility
    • Cost amortized over multiple participants
    • Time
  • You can also use formal and informal mentoring to train employees. To do so:
    • Explore the benefits for both the mentor and the protégé
    • Recognize and abate the potential risks for the mentor and the protégé

Evaluate the results of your training

  • Advantages of evaluating training
    • Identify needed adjustments
    • Assess the learning environment
      • Do trainees like the program?
      • Do trainees acquire knowledge, skills, ability in the program?
    • Assess transfer of training
      • Does the desired change in behavior occur?
      • Do we get a return on investment?
  • Some common misconceptions about evaluating training
    • Evaluate only after completion of the training
    • Must show direct financial gain on the company bottom line
    • Prove training is the explanation beyond a reasonable doubt
    • Have to develop new tools for measurement

Saturday we will explore how to establish a benefits and compensation program

Tuesday, May 8, 2012

Human Resource 4: Process to Select the Right Employees

Selecting employeesThis continues our series about human resource functions you may need in your business. We wish to credit Dr. Lori Wadsworth for much of the research on this post.

Human resource professionals provide excellent guidelines to help you select the right employee for your company. Business owners and decision maker’s first hire people they already know, like, and trust. Their second choice remains people referred to them by the people they know and respect.

Reasons to Select the Person You Hire

Your selection process identifies the person who most meets the following criteria. The person that will:

  • Do the job that you want done
  • Fit into your team or organization
  • Return the most profit for your investment

So, you identify the details for each of the criteria. The better you define the job you want the person to do (good job description), how the person you hire will fit into and complement your business, and how much revenues or savings you expect them to generate.

Prepare for the Selection Process

Your selection process gathers the data from the applicants to verify which one meets your criteria. You can use the following tools to select the right person:

  • Prepare for the selection process
    • Review job description
    • Identify job requirements: skills, abilities, education, experience, competencies
    • Prepare interview questions
    • Attract applicants validate yield ratios
  • Review application forms, resumes, letters of recommendation

Interview effectively to

  • Verify education, licensure, or certifications
  • Verify experience and work history
  • Follow effective interview processes
    • Pre-interview preparation of solid interview questions (see step 1)
    • Put the candidate at ease
    • Interview skills include
      • Effective questions techniques
      • Listen
      • Keep the interview on track
      • Keep the interview on track
    • Close the interview

Complete Post-Interview Evaluation and Follow-up

  • Review applications
  • Conduct background checks
    • You are responsible for back-ground checks
    • You, as the employer, are liable for employee’s unlawful acts
  • Check references
  • Avoid negligent hiring
  • Make your selection
  • Try to compensate for potential bias: compatibility error, halo effect, black mark or horns effect, and recency effect

Thursday we will continue by examining how to orient new employees & train existing ones

Saturday, May 5, 2012

Human Resources 3: Recruit and Test the Right Potential Employees

recruiting employeesThis continues our series outlining human resource functions you perform in your business. I acknowledge Lori Wadsworth, PhD as the major source of this information.

Your business may begin with one employee, you. However, if you realize your goals for the company, you will hire additional employees. The second person you bring on board may be the most important employee you hire. That person will double your work force and become an extension of yourself. Each person you hire after will extend the reach of your business. We will review the steps used to recruit and test your employees.

8 Biggest Mistakes in Hiring & Recruiting

  1. Failing to plan
  2. Using a poorly designed application
  3. Failure to retain applications
  4. Letting untrained supervisors interview
  5. Lack of reference and application checks
  6. Inadequate or no offer letter
  7. Inadequate orientation
  8. Doing it all yourself

Recruiting the Right Person for the Job

People tend to hire people they know, like, and trust. Sometimes, that can get you in trouble. Laws, regulations, and litigation created guidelines restricting what you can do. Companies with 15+ employees get held to higher standards than smaller ones. You must ensure that you:

  • Do not advertise or say anything that a person could construe discriminatory about race, creed, color, age, sex, marital status, national origin or disability.
  • Ensure that your recruitment policies will create a culturally diverse workforce
  • Prepare a complete well-thought out description of what you want the person you hire to do, skills to possess, essential functions for them to fulfill, & role to fill
  • Use the most effective methods to advertise: newspapers, Internet, radio, or staff

Testing to Verify the Right Skills and Fit

Human resource professionals can now administer a variety of tests to qualify your applicants. You should ensure that the tests pass the criteria for reliability (an indicator of the consistency of the test score on repeated measures) an validity (the ability of a specific test to predict successful job performance):

  • Personality/Psychological tests
  • Skills tests
  • Honesty tests
  • Assessment centers/Work samples

Tuesday we will review guidelines for selecting the person you hires

Thursday, May 3, 2012

Human Resources 2: Where to Get Human Resources Help

SHRM LogoThis continues our examination of the human resource functions your business may need

The complexities of human resource liabilities and functions blossomed at the same time that the number of small-businesses exploded. The economy responded by providing multiple types of solutions. We will share some of those resources with you. Hopefully they will help your business.

Staffing and Payroll Services

Staffing and payroll services provide a number of human resource functions for a fee. Since the employees work for the service, they maintain the records and liability. You can transfer employees from the service to your business. They can:

  • Recruit people for positions that you need filled
  • Ensure compliance with all legal and other regulations in hiring someone
  • Screen and select the right person for you job openings
  • Test candidates to verify that they possess the skills you need
  • Select which candidates to start on the position
  • Process all the paperwork, intake documents, I-9, safety, and other for the hire
  • Provide medical,  life, dental, and eye insurances
  • Collect and pay the social security, unemployment, Medicare, and other taxes
  • Pay the wages, provide raises, analyze performance, and establish salary ranges
  • Advise and consult with you on liabilities, OSHA, and safety regulations
  • Remove unsatisfactory employees who are not meeting expectations

Society of Human Resource Management

The Society of Human Resource Management (SHRM) is the professional association for human resource professionals. Only members may access some of the resources. The public may access others. You can find

  • Articles
  • Videos
  • Blogs
  • News and press releases
  • Policy statements
  • Legal rulings
  • Training programs
  • Certifications

Topics listed on the SHRM web site at the time of this writing included

  • Employers Tailor Work Flexibility Options
  • Harassment Rules Vary Worldwide
  • CDC: Sleep Deprivation Poses Risks
  • DOL Extends FMLA Rule Change Comment Period
  • Sample Job Descriptions
  • NLRB Posting Rule Blocked
  • Calif. Court Rules on Meal Breaks

I hope you can see the variety of HR issues that may impact your business. SHRM can help you understand and avoid liability.

Saturday we will continue discussing human resource issues that may impact your business

Tuesday, May 1, 2012

Human Resources 1: Overview to HR Functions in Your Small-Business

HRThis begins a series explaining the human resource functions someone needs to perform in your business. I am not a legal expert. I encourage you to consult legal experts as needed.

Every business with 2 or more employees—including family members—have to fulfill human resource (HR) functions. Litigation and legislation have made certain HR functions more mandatory and regulated. Technology and outsourcing have made them easier. Specialization has made them more difficult to perform as the one-person boss of the company. During the next few weeks we will explore and examine HR’s role in small-businesses and how owners can meet all the demands.

Major Human Resource Roles in Small-Businesses

Today’s human resource functions go deeper into the company than ever before. They can still be divided into groups that will help you understand them more easily. While this list seems comprehensive, it is not. I did not include some of the functions that can save you money or liability. I will add more details in subsequent posts. Some of the major functions include:

  • Recruiting and Selection of Employees
    • Recruiting (avoiding legal issues of discrimination, preference, & nepotism)
    • Testing
    • Selection
    • Background and reference verification
    • Intake (including I-9, OSHA, FLSA, Privacy, and other legal requirements)
  • Orientation, Training, and Development
    • New employee orientations
      • Safety orientation
      • Legal orientation
      • Responsibilities and functions
      • Policy and Standards of Conduct
    • On-going Training
      • Safety Training and Meetings
      • Skill development on new equipment or platforms
      • Certifications, licenses, and other requirements
      • Change implementation & management
  • Job Evaluation
    • Avoiding FLSA liabilities
    • Determining exempt or non-exempt status
  • Compensation
    • Salary grades and ranges
    • Performance appraisal system
    • Salary increase systems
    • Health, life, dental, eye, and other medical benefit packages
    • 401K, pension, or profit sharing
    • Processing payroll, collecting and paying applicable employee taxes
    • Regulations affecting family and child employees
  • Legal & Termination procedures
    • Avoiding unsuspected liability
    • Staying current on changing employment law
    • Discipline, warnings, & terminations in at-will or contracted environments
    • Complying with applicable OSHA guidelines

We will explore these categories over the next few weeks and share sources of information to help you.

Thursday we outline optional methods for human resource management in your company