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The Importance of HR for Small Businesses
Starting a new venture is always exciting—you get to dip your toes into something fresh and decide what direction you’ll take to complete the endeavor. When starting your own business, however, multiple aspects must be considered—the culture, mission, values, employee size, procedures, management, etc.—and this is where business owners tend to overlook the importance of a human resources department. Small businesses are pressured to bring in sales in order to keep their doors open, but as more sales are made, workload increases and more employees are needed. This is where HR is crucial.
With the need for more employees comes the need for proper management training for supervisors. If there is little to no guidance on how to manage employees, the company may be more exposed to liability for illegal employment practices. There needs to be someone who is well versed in current employment laws—if your company continues to move forward and ignores the importance of being in compliance, you run a high risk of getting yourself into legal trouble. And as a small business, a single lawsuit may close your doors for good.
Furthermore, an HR department is needed for talent management purposes. If management only cares about the dollars coming in and disregards their employees’ needs and well-being, there is a great chance these vital employees may leave. Pressure from management to complete work as well as having a large workload may lead to employee burnout. Small businesses need to retain their talent and find ways to keep their employees present—incentives, rewards and recognition are some popular tactics. Management needs to show their employees that all their hard work is much appreciated, therefore a culture that values and balances both work and play may alleviate stress and simultaneously promote productivity and overall morale. All in all, small businesses cannot afford to have a high turnover rate because the longer a seat is vacant, the more money it costs the company…and the more burnt out employees may feel if the extra work load gets dispersed.
For small businesses who cannot afford an HR department, there are outsourcing options. e-VentExe has a special service called eBasicHR which serves as a full HR department. eBasicHR gives business owners access to documents and forms necessary for compliant purposes, as well as unlimited use of an expert HR consultant who will answer and advise any question or issues that may arise.
*e-VentExe is a full service human resource consulting firm specializing in compliance law, recruiting and selection, training and development, and assessment tools. If your company is interested in learning more about eBasicHR or any of the services listed above, please call e-VentExe at 916. 458-5820.
A Period of Reengineering Your Company
We have all been touched in some way by the economic downturn in our region, professionally and personally. Many have felt the cold hand of fate grabbing at our dreams and plans for our future/ business and personal goals. Companies that stayed open dealt with the uncertain business landscape in a variety of ways. Some CEO’s laid off long term employees to avoid the negative spiraling bottom line results. Other CEO’s modified positions, changed responsibilities and tried to right size the operation the best they knew how. And, there were those CEO’s who closed their doors completely; the burden was just too large to manage. Those days were very dark, doubtful and relentless. I am sure many leaders sat at their desks alone and wondered, “Did I make the right decision? Could I have done something different? Would the business outcome be different? What if…., Where do I turn? Who can I talk to?”
Today, hope for our business future is taking shape again. We are seeing a resurgence of focused energy and innovation from our leaders. It finally feels like a spring day—the sun is out and the birds are singing. People are smiling again. However, the economic downturn has left a deep scar that may never fully become invisible. I like to call this period of new growth a Period of Reengineering.
CEO’s have a fresh start, a new look at their organization and workforce. They can once again begin to build a thriving and prosperous business and create a positive and engaging employee culture. Vistage International can become that voice, that resource for executives and business owners who supports and guides them through extremely uncertain business decisions. The time is now to reach out, seek guidance and support from a confidential, peer advisory group of CEO’s.
Vistage International brings together successful CEO’s, executives and business owners into private advisory groups. Each group is purpose-built to help members help each other improve the performance and outcomes of their business and personal lives. Vistage International works with each CEO to be a better leader who can make better decisions and get better results. In fact, they have helped over 75,000 members since 1957 when they began. And the support does not look at one dimension of a CEO’s life; the business. Discussions also center on a person’s health and personal life—it is strongly believed that the “whole person” adds to the strategic direction of a company. If issues are present in any of the three categories listed above, they are freely discussed inside the confidence of a member meeting.
Although peer advisory groups are a great help towards success, leadership and management trainings and assessments should not be ignored. These tools allow those in management to be aware of their strengths and weaknesses, ultimately allowing them to build upon their skills.
For more information regarding Vistage International and e-VentExe, please call Amelya Stevenson, M.A., SPHR-CA Vistage Chair and owner of e-VentExe, a full service Human Resource Consulting Firm at 916.458.5820.
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About e-VentExe
Founded in 2000 by Amelya and Craig Stevenson, e-VentExe provides businesses with strategic and compliance human resources tips and techniques, organizational effectiveness (or ineffectiveness) and overall strategic and healthy cultural influences in the workplace. We also make HR administration easy for small businesses with our eBasicHR and Compliance package. At e-VentExe, we keep the “Human” in Human Resources. Let us show our dedication to you! For more information, please visit us at www.e-ventexe.com,“LIKE” us on Facebook or follow us on Twitter!
Tidbit of the Week
Do all employees have the capability of being Creative at work?
Bruce Nussbaum thinks so. There are 5 categories describing Creative Intelligence. Under the “Playing” category, Nussbaum describes the art of play that employs having fun and being creative in a team environment. Most Creative Intelligent people find working within a team allows them to think outside of themselves. And the discovery of how new information forms is how Creative Intelligence takes shape.
70% of Workers Are Paid to Waste Time—Every Day
70% of Workers Are Paid to Waste Time—Every Day
Interesting article that gives you suggestions on how to boost productivity.
Are You Paying for Bad Hires?
This is an interesting article and gives you statistics on the cost of a BAD HIRE!
Spring Clean Your Leadership Skills
Spring has sprung! Spring is a time for renewal and rebirth of life and energy—plants and flowers begin to sprout and bloom, the annual “spring cleaning” spree ensues to remove unnecessary materials collected during the winter hibernation months, cleansing of the mind and body are encouraged. As such, spring is an essential time for leaders in organizations to review, rethink, and rejuvenate their overall culture by reevaluating their own skills.
Those holding leadership positions should ask themselves, “What can I do to make my organization better?” This “spring cleaning” may include tactics, ideas, strengths and weaknesses.
- Tactics: As a leader, making strategies and planning (whether long-term or short-term) are typical functions. Tactics on how to perform these strategies must be considered—what’s working now? What worked in the past? What have I done that seems to be working? Sure, every situation is different and plans need to be adjusted, but you, as a leader, must decide and eliminate strategies that may not be working (e.g. plans that are outdated and cannot reach the same caliber as current trends). In cases when sudden incidences rise without any warning, leaders must be quick and think on their feet without breaking a sweat.
- Ideas: Has your organization hit a plateau where innovation is nonexistent? Think outside of the box! Be inspired by creativity and if your ideas fail, at least you were brave enough to throw out suggestions that may seem out of the norm to others. After all, every accomplishment starts with the decision to try. With leaders making innovative and creative decisions, they can set a precedent for their employees to do the same; ignite the spark for creative thinking and see the results in action!
- Strengths and weaknesses: To be the best leader you can be, strengths and weaknesses must be acknowledged and carried out. Self reflect on what you need to work on and try tackling them a little bit everyday. If you want a more in-depth tool for seeking out your weaknesses (and strengths), consider conducting, or ask HR to conduct, a 360-degree feedback to see what your peers think of you and your effectiveness as a leader.
Keep a fresh open mind and see what you can accomplish for your organization. Now that spring has sprung, how are you planning to “renew” your leadership skills?
*e-VentExe is a full service human resource consulting firm specializing in leadership training and development. If you’re interested in conducting a 360-degree feedback, we can assist you in the process. Follow us on Facebook and/or LinkedIn to learn more about our company and see what interests us!
Tip of the day…
If you conduct employee engagement surveys and ask your employees to spend time honestly completing the survey, as an employer you must thank your employees for taking the survey and communicate to them what actions you will and will not implement from their suggestions. If you do not recognize your employees and their comments, you run the risk of having your employees never complete an engagement survey honestly again.
The High and Profitable Cost of Employee Training
According to the American Society of Training and Development, organizations spent $156.2 billion on learning and development in 2011. This statistic clearly indicates that employee training can drastically impact a company’s success among other factors. In this day and age when technology is on the rise and workplace dynamics are changing, training is a high necessity, as are finding the funds to cover it.
Training is crucial because it not only benefits organizations, but also enhances overall employee performance. According to Ferdinand Fournies, an internationally known consultant, author, and former professor at Columbia University’s School of Business, employee performance issues occur because employees: 1) are unaware of what they’re supposed to do 2) are unsure how to do it 3) are unsure why they should do it.
Other benefits of training include:
- Saving money and labor: Skilled employees may contribute to a decrease in maintenance expenditures, minimal supervision, lower turnover rates, and valuable time that may be used elsewhere (e.g. spending time on correcting others’ mistakes).
- Guaranteeing an organization’s competitive edge in the market: Employees must be updated on skills in regards to the ever-changing workforce and market. Employees are important assets to organizations and if training efforts are not invested to enhance their skills, companies may see a spiraling downturn in profits.
- Employee retention and/or satisfaction: The more effort management puts forth in their employees, the more opportunities their workforce has in career advancements and overall personal growth.
- Increased customer satisfaction: With increased skills comes better quality of work, which in turn means higher quality of services and/or products—these factors decrease customer complaint rates.
From an article in Workforce Management in 2006 detailing the training costs and efforts of the popular restaurant chain, The Cheesecake Factory, the organization spends approximately $2,000 on training per hourly employee each year. The chain takes their training seriously and involves all their employees: servers are enrolled in two weeks of on-the-job training; those seeking managerial positions receive 12-week development courses; dishwashers are also included in training programs. The Cheesecake Factory finds training to be beneficial as their turnover rate is approximately 15 percent below the industry average of 106 percent.
An important question to consider is: how does one pay for all the training expenditures? The Employment Training Panel (ETP) is a California State job funding agency created to assist organizations (only in CA) in finding the means to train their workforce. This fiscal year, ETP has up to 80 million dollars solely for training purposes with priority industries in technology, manufacturing, biotechnology, and agriculture to name a few. Not in California? No worries; grants and scholarships can be found in various state programs as well.
Training is essential for organizations, large and small. How much will your company invest in training efforts this year?
*e-VentExe is a full service human resource consulting firm located in Northern California. Our expert consultants can assist you with any training needs and assist you with finding funds for training. Give us a call at 916.458.5820 to learn more about how we can help you get on board with your training!
New Year’s Resolutions: What Should I Do as a Leader?
The New Year is an exciting time for rejuvenation—for self and business. As such, resolutions are made, but how long do these resolutions actually last? We see gyms overcrowded for the first few months into the New Year with individuals trying to change their lifestyle, we see leaders jump-starting a new out-of-the-box campaign or company process with enthusiasm in hopes that it will last the entire year; but sadly, most resolutions are not long-lasting. Motivation and perseverance play a vital role in keeping goals and resolutions. For business leaders, the New Year is a time for reevaluating their tactics, attitudes, and beliefs to better themselves and their organization.
Some considerations for leaders include:
- Effectiveness as a leader: What are some things you should stop doing this year that will make you more effective in your role? What are some things you can begin doing or implementing?
- Self-limiting beliefs: What beliefs are preventing you from achieving your goals?
Learning about your strengths and weaknesses can guide you through these questions. There are many tools that can assist you in recognizing these such as assessment tests (more advanced and validated), self-reflection, or observations from others about yourself.
Maybe your lack of team work and collaboration is holding you back from communicating effectively with your employees and managerial team. Utilizing assessment tools can help you recognize this and give you a detailed and user-friendly explanation to guide you through this behavior.
The first step towards achieving goals and/or resolutions is always the simplest; you just do it. Next, you have to mentally change and implement the behaviors—this is not a one-time process; this might take weeks, months, or even the entire year. But you must practice it in order to change your mindset and receive positive results.
This is where many individuals fail to uphold their resolutions: they do something once and say to themselves, “This is easy. I can do this everyday.” But the fact is: sure, it can be easy if you do it for a short-period of time, especially right after the holidays when motivations to keep resolutions are high. What about after a month when things in your life and/or organization begin to pick up? Will you be able to keep your resolutions or goals? The only way to keep motivated is to practice, practice, practice! Ingrain your resolutions/goals into your daily routine.
To be the greatest leader you can be you must understand yourself and the individuals you work with at your organization, as well as maintain business acumen. With that said, are you still continuing your business resolutions/goals?
*e-Ventexe is a full service Human Resource consulting firm in the Greater Sacramento region with superior knowledge on assessment tools. To learn more about how these tools can be beneficial to your organization, please call us at 916.458.5820.
The Human Balance 