Tips for small businesses on HR

1. Laura Jacob
President, Pro Way Development, LLC
– Connecting HR to your Bottom Line
2039610227
www.prowaydevelopment.com
laura@prowaydevelopment.com
www.linkedin.com/in/laurajacob
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2. Pro Way Development, LLC
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3. Managing the HR Function
Company culture – a place to start
Before you hire your first employee
Employee life cycle
Legal pitfalls
Some thoughts on
◦ Staffing
◦ Compensation
◦ Managing Performance
Q&A
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4. 1) Office manager/owner/CFO
2) PEO (Professional Employer Organization)
3) Outsource
4) Not at all
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5. Register your business
Worker’s compensation insurance
Unemployment insurance
Order federal and state posters
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6. Think about the employee life cycle
◦ Recruitment
◦ Compensation & Benefits
◦ Payroll & Tax administration
◦ Employee Relations
◦ Training & Development
◦ Performance Management
◦ Terminations
Corporate Culture?
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7. “The talented employee may join a company
because of its charismatic leaders, its
generous benefits, and its world-class training
programs, but how long that employee stays
and how productive he is while he is there is
determined by his relationship with his
immediate supervisor.”
Marcus Buckingham, First Break All the Rules
Pro Way Development, LLC
- What the World’s Greatest Managers Do Differently p 11-12
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8. 1) Do I know what is expected of me at work?
2) Do have I the materials and equipment I need to do
my job?
3) At work, do I have the opportunity to do what I do
best every day?
4) In the last seven days, have I received recognition or
praise for doing good work?
5) Does my supervisor, or someone at work, seem to
care about me as a person?
6) Is there someone at work who encourages my
development?
Marcus Buckingham, First Break All the Rules
- What the World’s Greatest Managers Do Differently p 28
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9. 7) At work, do my opinions seem to count?
8) Does the mission / purpose of my company make me
feel important?
9) Are my co-workers committed to doing quality work?
10) Do I have a best friend at work?
11) In the last six months, has someone at work talked
to me about my progress?
12) This last year have I had the opportunity to learn
and grow?
Marcus Buckingham, First Break All the Rules
- What the World’s Greatest Managers Do Differently p 28
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10. Nice - How you treat one another is the basis for how you
will treat your customers.
Trust - Having faith in your employees is the most important
component of building relationships.
Pride - Make your people an implicit part of your company
mission statement and be sure to give them the
environment, the tools, and the education they need to do
their jobs well.
Include - Reach out to your employees for input on business
decisions or changes in areas where they are particularly
gifted or well-versed. Then take their suggestions into
account when making changes or starting new initiatives.
Recognize - Take the time to celebrate victories, big and
small, by your staff and know enough about them to know
how they’d best like to be recognized Personalizing rewards
makes them really matter.
Hug Your Customers: The Proven Way To Personalize Sales and Achieve Astounding Results. Jack Mitchell
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11. Knowledge Recruiting to realistic
job descriptions
Skills
Job applications
Abilities Background checks
Behavior based
Where to find the interviewing
people? On-boarding plans
1099/ W2 Proper I-9 storage
Employee orientation
Handbook sign off
Non competes
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12. Compensation
◦ Compensation plans to drive results
◦ Cash and non cash incentives
◦ Salary Surveys
◦ Payroll and Payroll Taxes
◦ 401(k)
Benefits – that motivate
◦ Healthcare
◦ Voluntary
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13. Maslow’s Career
Hierarchy
of Needs Promotion/Performance
Management
Job
title/Respect
Work Friends/
Positive setting
Benefits
Salary / OSHA
trainingbubble.com
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14. IR-2010-48, April 19, 2010 Recent enactment of small business health care
tax credit.
Credit available to small employers that pay at least half the cost of single
coverage for their employees in 2010.
Specifically targeted to help small businesses and tax-exempt organizations
that primarily employ low- and moderate-income workers.
For tax years 2010 to 2013, the maximum credit is 35 percent of premiums
paid by eligible small business employers and 25 percent of premiums paid
by eligible employers that are tax-exempt organizations.
Maximum credit goes to smaller employers — those with 10 or fewer full-
time equivalent (FTE) employees — paying annual average wages of $25,000
or less.
The credit is completely phased out for employers that have 25 FTEs or more
or that pay average wages of $50,000 per year or more.
Eligible small businesses can claim the credit as part of the general business
credit starting with the 2010 income tax return they file in 2011.
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15. Department of Labor issues
◦ Wage and Hour
◦ Employee classification and overtime
◦ 1099 vs W2
◦ Pay Schedule – needs to be consistent
Discrimination
◦ CT –Harassment Prevention Training for companies of 50+
◦ CT protects against discrimination based on Race, National
origin, Color, Religion, Sex, Disability, Pregnancy, Citizenship,
Uniformed services Age 40 and over, Ancestry, Marital status,
Present or past history of -mental disability, mental
retardation, learning disability or physical disability (including
blindness), Sexual Orientation
◦ ADA
◦ ADEA
◦ FMLA
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16. For example: FMLA
◦ “The U.S. Department of Labor (DOL) on June 22,
2010, clarified the definition of “son and daughter”
under the Family and Medical Leave Act (FMLA) to
ensure that an employee who assumes the role of
caring for a child receives parental rights to family
leave regardless of the legal or biological
relationship. The DOL interpretation applies
to nontraditional families, including unmarried
partners and families in the lesbian-gay-bisexual-
transgender (LGBT) community.”
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17. Employee Relations
◦ Communication?
◦ Employee Issues?
◦ Feedback...
...is a healthy communication between you and
a team member or leader that reinforces
competence and aligns expectations
towards a business-related goal.
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18. Start
Stop
Continue
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19. Train? Manage? Terminate?
Skill/Will Matrix
High GUIDE DELEGATE
Will
Low Will DIRECT EXCITE
Low Skill High Skill
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20. www.prowaydevelopment.com
laura@prowaydeveloment.com
www.linkedin.com/in/laurajacob
203.961.0227
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