Large businesses have the advantage of resources, time and capital to properly manage their workforce, none of which smaller business has in any abundance. This makes it difficult for small business to maximize productivity, avoid time crushing employee problems and compete on the same stage with their larger counterparts. It may be challenging, but it is essential for small businesses to proactively and effectively manage their workforce. The task boils down to 5 simple strategies that will vastly improve your workforce, your productivity and your profitability.

Know Who You’re Hiring Before They Punch the Clock the First Time
It’s easy to make a bad hiring decision. People are unemployed or looking for a new employer for a variety of reasons so it’s critical you find out why they are looking and why you would want to hire them before you make an offer. Have the post-offer candidate submit to a background check and a drug test before the deal is inked. Diligently check all references. Just a few days and a few bucks could save you from a major headache. Hiring is a process, create one, and follow it.

Orient the New Employee to Your Company, Their Job and Your Expectations
Employees perform more effectively if they know what their job entails, what the company goals and objectives are, and what your employee policies are. Take time when you hire new employees to introduce them to your company, your vision, and your expectations and explain what their role is. Train them on the particulars of their position and what benchmarks they should meet. Be sure to document all orientation and training sessions.

Consistently Manage Employee Performance
Poor employee performance can drag your business down and prevent it from reaching its true potential. It is critical to set positional benchmarks and then measure performance accordingly. Holding periodic performance reviews is important so that employees don’t progress too far into a behavior or habit that is counter to what you are trying to accomplish. Be sure to deal quickly with mediocre performance and create a defensible paper trail. Retrain, monitor and then take quick action on those who are unable to improve.

Accurately Record Hours Worked, Attendance and Employee Status/Changes
Employers must keep accurate time records including hours worked, overtime, vacation, attendance, and tardiness. Additionally, any employee changes including pay, exempt/non-exempt status, job title, pay structure and address changes should be immediately documented and kept on file. Have the employee acknowledge any changes in status or pay and make sure they fully understand the changes. Accurate pay and employee status changes are important to employees as well as most judges and labor boards you may come across during a legal challenge.

Terminate Decisively and Minimize Liability Exposure
Only after careful consideration should you terminate an employee, but when the decision has been made, do not delay the process. Be sure you have pursued all other options with the employee including counseling, disciplinary actions and training. Also, consider any factors that may cause a problem such as protected class (e.g., age, gender, race, religion), workplace injuries, age or other discrimination issues that may be lying under the surface. The employee should never be surprised that they are being terminated is a general rule as is providing all the necessary paperwork to protect your self in the event of a legal challenge.

Of course these are just summaries of employee management strategies but you get the idea. Employee management is important if you want to be the best at what you do. Take the necessary steps in house to develop a strategic employee management program or outsource those tasks that you cannot handle in house.