Knowing how to maintain your staff performance and morale in an unstable economic environment may be crucial to your business success. It could give you the competitive edge that makes a difference.
Most small to medium enterprises (SMEs) don”t have a dedicated HR staff member. Generally, it is the business owner or manager who takes on this role often without any training or knowledge in the field. If this is the case for you, how do you ensure your team is your most valuable asset?
Develop an HR policy and procedures manual
The purpose of having HR policies and procedures is to allow you to effectively align your business goals and objectives and coordinate and communicate them to all your staff.
Your HR policies and procedures manual will provide clear guidelines that comply with legislative requirements and empower your staff to maximise their contribution to the business.
Your HR policy can cover a vast range of topics, depending on the size and nature of your business. Listed below are some of the areas that should be considered essential for all businesses even those with just one employee.
Business statement
A statement about your vision/mission and objectives is crucial to your staff understanding what you are trying to achieve. How can people be expected to contribute to your success if they are unsure what it is you”re striving for?
Business ethics
How do you expect your employees to behave? How would you expect them to communicate with customers and suppliers? What do they need to know about compliance with laws and regula-tions? What is your policy about the use of company resources, for example email and internet or personal phone calls? What information is considered confidential?
Occupational health and safety
It is your obligation as an employer to provide your employees with a safe work environment. A statement to this effect outlines your obligations, but what responsibilities do your employees have to maintain their working environment and/or report any accidents?
Antidiscrimination statement
A statement that outlines your adherence to legislation and legal obligations to provide a workplace that is free of discriminatory practices and encourages diversity will clearly outline your position on these matters.
Training and development statement
What minimum training will you provide your staff with? Do you encourage external or further training and how will you support that?
Performance management strategies
How will you assess your staff performance? How frequently will this be done? Performance management strategies, including performance appraisals, should link closely to staff job descriptions and related objectives. Any breach of these policies can then be handled in the appropriate manner avoiding that common cry from employees: ”I didn”t know I wasn”t supposed to do that!”
In addition to these HR policy statements, I would recommend you document the following:
- Organisational chart including areas of responsibility
- Job descriptions with objectives and key areas of responsibility
- General conditions of employment standard office hours, annual leave, sick leave, holidays, etc.
All of these factors might sound rather clinical but they are only the first step to achieving excellence from your staff.
Develop a recruitment strategy
How do you attract and retain the right kind of employees for your business?
Attracting candidates is a huge issue that confronts many SMEs. So often the employment decision is made without following a structured process. The potential new employee might be a relative, a friend of a friend, or come recommended but does that make them suitable for the position you want to fill? Will they be able to perform the tasks? Sure it can be a quick and economical solution, but it might not work out in the long term. Hiring unsuitable staff can be an expensive exercise.
To be effective, recruitment must follow a planned and structured approach. As the employer, if you haven”t developed a job description, then you need to be absolutely clear what you will require the person to do.
How can you effectively employ someone if you”re unsure what duties they will be performing? How can an employee perform at their best if they are unclear what they are required to do?
Most employees who leave a job within six months state that the job did not meet their expectations. This is a direct reflection on the employer and their recruitment process.
Motivate your team
Recruiting the right people is only the first step in a long journey retaining your staff and having them add value to your business is the next and ongoing step towards your success.
Surprise and reward your staff. Make them feel like a valued member of your business and a contributor to your success. Many people have told me recently that they prefer working in the small business environment because they feel more like a real person than just a number. Take advantage of this get to know them, find out what motivates them and do what you can to include them in your business.
After all, if your staff is your most valuable asset, make them feel like they matter and that they do make a difference.
If you would like to know more including getting suggestions on policies and meeting your legislative requirements there are numerous government department websites you can refer to. For example, the NSW Department of State and Regional Development site (www.industry.nsw.gov.au) has references and links to many resources. The Commonwealth Department of Employment, Workplace Relations & Small Business” website (www.workplaceinfo.com.au) provides information to small businesses and has large range of links to industry organisations, government agencies, media, etc.
