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Important HR Tips for Small Business Owners

Running a small business involves managing many responsibilities at once. One of the main tasks of a small business manager is finding the right employees as well as managing staff. These tasks fall under HR (Human Resource) management. If you run a small or mid-size business, you need to have exceptional HR skills. HR management covers several important functions in a company, such as employee recruitment, onboarding, and management, resolving interpersonal conflictslegal and regulatory compliance, and benefits administration. Here are seven HR tips for business owners, along with some thoughts on the importance of hiring a PEO:

Communicate Effectively

Exceptional communication is critical. You need to know how to communicate effectively with your employees and also be able to listen compassionately when they voice their concerns. Besides communicating well with employees, you should instill in them the necessity of solid communication skills, such as writing clear emails, in addition to speaking effectively.

Have Exceptional Negotiation Skills

Being able to effectively negotiate is especially important. Usually, when problems arise, there is more than just one viewpoint. In order for a resolution to occur, an agreeable middle ground must be reached. Also, the parties involved need to be satisfied with an outcome, which can be challenging.

Know When to Turn to Professional Advice

Often, business owners are forced to deal with problems that contain vague or “gray” areas. For example, they may have to decide whether a complaint made by an employee against another employee involves sexual harassment or sexual discrimination. Sometimes when these matters come up, there can be limited information. Therefore, you may need to turn to certain professionals, such as lawyers and other specialists.

Be Extremely Organized

Being exceptionally organized is another critical requirement when it comes to Human Resources. In other words, everything must be in its proper place so that documents, files, and other items can be found quickly.

Enforce Company Policy Diplomatically

When you manage employees, you need to have good diplomacy skills. This means protecting your company by establishing and enforcing boundaries, and putting the organization first, while still listening to the viewpoint of your employees. There may be situations when you need to stand by your company’s policies, but this doesn’t mean you can’t let your employees state their opinions in a safe environment where they don’t feel threatened.

Be Able to Multitask

Running a business involves having to juggle several things at the same time. Think about how you may need to help an employee with a personal issue and then, a few minutes later, another matter needs to be quickly resolved, such as filling a specific job. When this occurs, each person can think their crisis is the one that needs the most urgent attention. Instead of panicking, you need to multitask without losing your cool.

Promote Educational Seminars and Additional Training

Another basic aspect of Human Resources is providing training and education. As a business owner, it’s your responsibility to offer your workers with the tools and training required for performing their job well. In many cases, company training is a job requirement, but sometimes it is non-compulsory. When optional seminars and other types of educational opportunities are offered, you should encourage your employees to take advantage of them so that they can do a better job, enhance their skills, and have access to promotions and other opportunities.

The Benefits of Hiring a PEO

HR management is just one of the reasons for using a PEO, which is a firm providing outsourcing services to businesses so that employers have more time to run their companies. These services include payroll administration, safety and risk management, employee benefits, workers’ compensation, commercial insurance, technology, employee recruitment, training and development, along with other jobs.

Considerations and Warnings

  • Always acknowledge your employees’ accomplishments. In addition to verbally recognizing their achievements, think of tangible ways to reward them for exceptional job performance.
  • Let the employees take ownership of their ideas. This can mean allowing them to present their viewpoints to senior management. Consider how doing so can promote team spirit and help employees feel like they are truly part of the organization.
  • Be sure you handle confidential information properly. This means being ethical and discrete. Never share private information with people who are unauthorized.
  • Be a positive role model. Instead of simply telling your employees how they should perform, show them by example. In other words, let your actions speak louder than your words.

You don’t have to feel overwhelmed about running your business when you hire a PEO. At Harbor America, we focus on small and mid-sized business owners in the construction industry as well as other blue-collar fields. Please contact us for a free consultation and learn more about how a PEO can give you have more time for operating your business.