Small Company? Four BIG Personnel Mistakes to Avoid

In a large corporation, you may have an HR department and layers of management to help you deal with your personnel issues. But if you run a small business on your own, you can save yourself a lot of trouble down the road if you follow these four simple rules:

Don’t treat employees “like family.” Establishing a close-knit, friendly workplace is fine, but make sure you also establish some boundaries. Treat employees with respect and consideration - but remember that they are employees.

Don’t reward loyalty over performance. During a business downturn, you may be forced to lay employees off. As painful as this can be, don’t compound your difficulties by adopting a “last in, first out” policy. When you make your decision, concentrate on keeping your best people, regardless of how long they’ve been with you.

Don’t neglect the law. Even if you have fewer than 50 employees, pay attention to the rules regarding withholding, discrimination, and other critical issues. Don’t assume you can smooth things over with a disgruntled employee before he or she calls a lawyer. Play it safe, consult with your attorney, and follow the law to the letter.

Don’t delay a necessary termination. Firing someone is never easy or enjoyable, and many managers put it off as long as possible. But in a small organization, one person’s poor performance can make problems for everyone. When an employee isn’t pulling his or her weight, don’t hesitate to pull the plug—or you may endanger your whole business.

Source: The Manager’s Intelligence Report

Posted in: HRvest
Twitter Facebook LinkedIn Digg Delicious StumbleUpon Email
The information contained in this article was obtained from sources that to the best of our knowledge are authentic and reliable. Fortune Industries makes no guarantee of results, and assumes no liability in connection with either the information herein contained, or the safety suggestions herein made. Moreover, it cannot be assumed that every acceptable safety procedure is contained herein, or that abnormal or unusual circumstances may not warrant or require further or additional procedures. Mention of any product, service or company is not an endorsement from Fortune Industries.