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Proactive HR: Part Three

Proactive human resources

In the final part of our three-part series, Proactive HR, we cover what employee records to keep on file, as well as employee performance reviews.

Proactive reviews

You likely provide regular feedback to your employees. You’re mistaken if you think that feedback is enough. It’s important to schedule a quarterly or annual performance review with your employee, and hear them out. Listen to what they’re happy about and what changes will make them happier. This is also a great time to ensure your employee’s compensation remains competitive.

Employee records

Last but not least, it’s important to keep track of your employees. Below are the files we recommend maintaining:

  • I-9 Folder
    • All employees’ I-9 forms
  • Personnel
    • Job application
    • Resume
    • Background check
    • Offer letter
    • W-4 and state withholding form
    • Employee performance reviews
    • Training records
    • Confidentiality/noncompete agreement
    • Signed handbook acknowledgement
    • Drug testing consent/acknowledgement
  • HIPPA-Protected Folder
    • Health, life & dental benefit forms
    • Drug testing results
    • Personal or family medical leave information
    • Doctor’s notes
    • Benefits enrollment forms
    • Worker’s compensation information

Inspiration for this post comes from “HR Keys to Business Success” by Melisa Morrison published in the December 2022 issue of Creative Retailer. Morrison has over 30 years of experience in Human Resources and is a former quilt shop owner. Stay tuned next week for the final part of the series.


If you’re looking for more information to guide you in owning a retail business, subscribe to Creative Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

If you still can’t get enough, register for the Creative Retailer LIVE Spring 2023 event May 2-4 in Pawhuska, Oklahoma for opportunities to learn from peers as well as network with industry professionals.

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Proactive HR: Part Two

HR: employee training and company handbook

Welcome back to part two of our three part series, Proactive HR, where we walk through six common human resource mistakes and how to avoid them. Read on for more information on employee training and the company handbook.

Employee Training

Fact: 40 percent of new employees leave a job within a year if they’ve received poor training. You may think you don’t have time to train new employees, but to stay ahead of the curve in a competitive marketplace, you’ll need all employees performing at their peak.

The training process should consist of two parts: in-depth onboarding and ongoing development. Onboarding should cover processes and expectations. Consider assigning a “mentor” during this process as well. For ongoing development, keep a consistent training program that ensures your staff are learning new skills on an ongoing basis.

Company Handbook

Not having company policies in writing is asking for trouble. You can face a gamut of problems including legal repercussions if an employee claims they weren’t made aware of company policies, or constant questions from a confused employee. Thankfully, we have an employe handbook template to use as guidance.

In summary, the employee handbook is your business’s guide to policies, procedures, and legal obligations. It should be a general and fluid document revised every two years. Employees should be notified of any updates. It’s also a good idea to have employees sign an acknowledgement they will abide by company policies.

Inspiration for this post comes from “HR Keys to Business Success” by Melisa Morrison published in the December 2022 issue of Creative Retailer. Morrison has over 30 years of experience in Human Resources and is a former quilt shop owner. Stay tuned next week for the final part of the series.


If you’re looking for more information to guide you in owning a retail business, subscribe to Creative Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

If you still can’t get enough, register for the Creative Retailer LIVE Spring 2023 event May 2-4 in Pawhuska, Oklahoma for opportunities to learn from peers as well as network with industry professionals.

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Proactive HR

HR mistakes: hasty hiring

Small business owners juggle many tasks. Drop the ball and it can turn into a disaster—especially when dealing with HR. Over the next three weeks, we’ll break down the six most common human resource mistakes and how to avoid them. (Pro tip: most are preventable!)

Hiring

Hiring the wrong person is expensive and affects employee morale. If you’ve ever hired the wrong person, you’re not alone. According to a CareerBuilder survey, 75 percent of employers said they’ve made the same mistake.

Avoid turnover by sticking to a clear, consistent process. This means posting an accurate job description (including qualifications, job duties, etc) and involving the team in the hiring process. It’s important you hire a qualified candidate who fits your company culture.

HR Misclassifications

The IRS is strict with how businesses classify employees, and the mistake can cost thousands in penalties.

To determine an employee’s classification, look at their job duties. Below are some bullet points that can be a good place to start. Visit dol.gov/whd for further assistance.

  • Independent Contractors
    • No tax withholding
    • Typically also work for other entities
    • Provide their own equipment
    • Set their own hours
    • Not directed on a daily basis by the company
    • Numerous other factors
  • Overtime-Exempt Employees:
    • Tax withholding
    • Must meet specific overtime exemption requirements
    • Salary wage
    • No overtime pay required
    • Pay can be reduced only under certain circumstances
  • Nonexempt Employees
    • Tax withholding
    • Hourly wage
    • Overtime pay
    • Paid for actual time worked
    • Hours must be accurately tracked

Inspiration for this post comes from “HR Keys to Business Success” by Melisa Morrison published in the December 2022 issue of Creative Retailer. Morrison has over 30 years of experience in Human Resources and is a former quilt shop owner. Stay tuned next week for more on employee training and the company handbook.


If you’re looking for more information to guide you in owning a retail business, subscribe to Creative Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

If you still can’t get enough, register for the Creative Retailer LIVE Spring 2023 event May 2-4 in Pawhuska, Oklahoma for opportunities to learn from peers as well as network with industry professionals.

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Positive Company Culture

company culture

A negative company culture can have a devastating impact on your business. Read on to learn how to create a positive company culture by knowing the employee archetypes and how to manage them.

The Impact of Company Culture

There are a couple ways to manage workplace negativity. The first is to set clear expectations in your company handbook and follow them. The second is to have quarterly performance reviews. This provides both parties with an outlet for constructive criticism on how the other party can improve.

Another factor to consider is yourself. What sort of example do you set? Do you make your employees feel appreciated? After some soul searching, be ready to confront negativity head on. The following tips will be a good place to start managing the negativity.

Employee Categories

  • The Emotional Employee: Emotional employees are easily provoked which can be distracting to business. Set up a weekly sync to be used as a vent session as an outlet.
  • The Social Butterfly: This employee has a poor gauge of time and enjoys chatting. Fortunately this is easy to manage. Put social butterflies in a social role like planning workshops and employee or customer recognition events.
  • The Bully: Workplace bullies use power to manipulate others. For this conversation you’ll want to listen to both sides of the story and have your facts ready.
  • The Complainer: More often than not, this isn’t a bad thing, especially if the employee is bought into the company’s mission. Listen to what they have to say—they may bring up a point you haven’t thought of before.

Inspiration for this post comes from “Positive Culture Produces Satisfied Employees” by HR expert and former quilt shop owner Melisa Morrison published in the October 2022 issue of Creative Retailer.

If you’re looking for more information to guide you in owning a retail business, subscribe to Creative Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.

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Employee Handbook

employee handbook

Even if you feel like your employees are your second family, an employee handbook is just a good business practice. Read on for reasons why this helps communication and where to start this seemingly-daunting task.

Why do I need an employee handbook?

There are many reasons you should have an employee handbook.

The first is for time-savings. Instead of answering the same question multiple times, employees can reference the handbook for questions regarding vacation or sick leave.

The second is for consistency. Writing down expectations ensures you’re treating each employee fairly (no matter how well-intentioned you try to be).

Finally, and most obviously, an employee handbook is just a good legal practice. The reality of owning a business is that some day you’re going to have to fire an employee or someone is going to get very sick. Planning ahead and being transparent through an employee handbook is a great way to cut down on any drama that may come up down the line.

Where do I start?

The best way to start is the old-fashioned way—make a list.

You probably already have policies in your head; start with those. As your list expands, you’ll quickly realize which policies you should prioritize.

Consider having your employees at this conversation as well. Employees will have great insight into what sorts of questions have come up for them—policies such as dress code, scheduling, and more.

Stay tuned for next week’s blog where we go through a handbook outline, as well as cover state and federal regulations.

Inspiration for this post came from “Yes, You Really Need an Employee Handbook,” by Melisa Morrison published in the February 2022 issue of American Quilt Retailer.


If you’re looking for more information to guide you in owning a retail business, subscribe to American Quilt Retailer today. Already a subscriber? No worries—join our Facebook group for insights and dialogue from industry specialists like you. And don’t forget, you can always purchase single issues if you prefer that instead.