At what point does a start-up or a small business need HR?  In my experience many small businesses feel comfortable as long as their payroll company is handling payroll reporting properly.  Yet, as the business grows, the need for standardization in managing people develops.   Policies on vacation, sick time, harassment, dress attire and much more begin to surface.

I’ve heard clients use the term “HR Lite” to express their internal HR structure.  Basically, they don’t want rules to stifle their growth culture.  Plus, by nature, true entrepreneurs avoid rules and regulations.

What HR issues do you face as a small business that concern you?  If you were to build an “HR Lite” package of services for your business, what essential services would you need most?

Hiring top talent does not just happen miraculously.  It requires a diligent effort to first define job performance expectations and then to source candidates based on this criteria.

The following 4 steps will increase the odds that you will be successful in hiring above-average performers:

1) Identify what characterizes a high performer.  Is it quantity of output, amount of time spent, number of defects created, or is it the amount of revenue their group has generated?   Identify the benchmarks that will you measure top performance.

2) Once you have agreed on the quantitative measures, identify current employees who are top quarter performers. Spend time with them and develop profiles for each of the high-performers.  Try to find out two things: what one or two characteristics distinguish them from poorer performers and what, if anything, do they have in common with each other.

3) Find out where these high performers are located. This is necessary so that you can target your sourcing and advertising toward them.  One of the most useful ways to collect information is to ask incoming new hires for referrals and for general information.

4) Find out what will entice these potential high performers to your organization. Through discussions with the high performers you currently have, it should be possible to put together attractive recruiting messages. By focusing on what attracts high-performers, you will also discourage those who are not so good.

Source: http://www.ere.net/2006/04/26/what-is-talent-and-how-do-we-measure-it/

In defiance of common thought, the level of skills required for a given position does not define “A” from “B” players. Entry-level does necessarily mean “B” player. Lack of a business degree does not necessarily mean “B” player. Lack of specific industry experience does not necessarily mean “B” player. Define positions based on what works now for the business and use this as the basis of “A” performance. Small businesses may not be able to afford top talent, but that is only if your definition of top talent is not accurate for their business. Refine top talent by identifying top performance expectations based on the parameters that the business owner establishes.

In 2009, we witnessed a year of mass layoffs.  In 2010, be prepared for another wave.  Yet, this wave will be different.  This wave will be voluntary . . . a mass exodus of employees who have lost faith in their employer.

A recent survey of American workers conducted by Harris Interactive revealed:

• 77% are not satisfied with the strategy and vision of the company and its leadership.
• 48% of workers are not satisfied with the relationship they have with their boss.
• 66% of American workers are not satisfied with their compensation.
• 76% are not satisified about future career growth opportunities at their company.

What workers are telling us is that even during a recession, just having a job does not equate to job satisfaction.

These survey findings suggest that companies seeking to retain their employees when the recovery begins should start by addressing three key areas of dissatisfaction:

1. Compensation
2. Career growth paths
3. Retention efforts.

Better to love your employees now, or be prepared to watch your top talent leave in 2010. 

I often hear from business owners that they don’t have “time” to get a new employee up to speed.  Excuse?  Not at all.  The reality is that business owners are extremely busy. 

Based on staggering statistics that 22% of staff turnover occurs in the first forty-five days of employment, it makes perfect sense to delay a hire if you don’t have the time to onboard an employee properly. 

Yet, most companies continue to hire new employees without providing effective training or mentoring.  New employees are often told they need to hit the pavement running.  Why?  Because the owner or hiring manager doesn’t have time to work with the new employee to get them up to speed.  

Have you ever heard the quote by John Wooden, “If you don’t have time to do it right, when will you have time to do it over?”    

Here are 3 things you must do if you want to hire people who can “think!”

1) Accept different ways of doing things.
2) Trust others to get things done.
3) Get out of your own way.

Last week I consulted with a client who is hiring her first professional manager. Currently most of her employees are “Task Masters.” Tell them what to do and they will do it, and do it well.

But, what if you don’t know what you want them to do? What if you don’t have the expertise to direct someone in a specific functionality, such as IT, accounting, marketing, or perhaps even sales? What if you know what to do, but you don’t have the time to drive the initiative.

At some point, business owners need more bandwidth. They need employees who can think and act like they do. Yet, your talented team probably won’t do things exactly how you might do it. But, if you get to the same end result, does it really matter if they do it a bit differently?

Letting go of doing it “your way” is the tough. Letting go of “control” is even tougher? Letting go of your “ego” . . . you know, the one that feeds off being the “smart one” in your organization . . . well, good luck on that one.

Some business owners refrain from training their employees for fear they will spend money training and then the employees will leave for greener pastures. Yet, the old adage goes . . . the only thing worse than training your employees and having them leave, is NOT training your employees and having them stay.

4 Layers of benefits derived from professional development are:

1) More motivated, skilled employees.
2) Increased productivity and thus greater ROI.
3) Long term positive change stimulated by new insights and ideas.
4) Improves communication and relationships with customers and team members.

So, what holds you back from training your team? Money? Fear of losing your trained employees? Unable to envision the ROI?

Please tell me why would a business owner not want their team to be motivated, productive, and happy? How can your bottom-line not be positively affected if your team is operating at their optimal level?

Small business owners need to be aware of the frustrations and concerns of their employees during this economic downturn.  Owners must think carefully and act quickly.  Keeping a small business “alive” today is a struggle, but what if employees do not want to stay with your company because they are scared of a job cut?  Your business could go from running strong to barely breathing if your employees do not have your trust.

You want your employees to be loyal and to feel safe with you right?

Here are some key points that will keep that knot of trust tight.

•    Communication is vital.  Let your employees know how the business is doing.  Hold meetings in which the owner can answer questions.  Don’t wait until there is a pay cut or layoff; ask the employees ahead of time if they would be willing to take a pay cut to save the job.

•    Give acknowledgement and show appreciation.  Allow employees to take an extra day off or to go home early.  Remember if there have been layoffs, other employees take on the additional responsibilities and can easily get burned out.  Also tell employees that they are doing a great job and ask them if they have any concerns or questions.

Loyalty in a small business goes a long way.  Just as you might be suffering with your business so might your employees’ lives.  Keep their trust and keep your company!

Referred candidates may be a great fit for your position, but how do you know for sure? As an interviewer, it is easy to overlook weaknesses in a referred candidate because the “likeability factor” has set in deeply. Best practice is to evaluate referred candidates just like all other candidates. In fact, best to be even more thorough. If a hiring mistake is made, you certainly won’t enjoy telling your referral source that you fired his friend.
4 Best Practices:

Interview – Conduct formal office interviews and ask the same challenging questions you would of other candidates.
Assessments – Verify behavioral style and skills to ensure job fit.
Objective interview – Engage a professional interviewer to evaluate the candidate and provide an unbiased opinion. (Safari can help! Click here for more info.)
Reference Checks – Talk to at least three professional references, preferably past supervisors.

To receive the best referrals from your network, it is important to be clear about the type of candidate you are looking for.  Also, be sure to keep your referral sources informed.  People love to know their help is valuable! Follow these four tips for best referrals:

1. Create a written position profile that describes the position responsibilities, accountabilities, and necessary qualifications.
2. Distribute the position profile to members in your network.
3. Thank your referral sources and keep them updated throughout the interview process.
4. Contact candidates promptly and communicate frequently about their interview status.