Tag: human resources

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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

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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Creating Company Culture

company culture

Every business has company culture, whether they realize it or not. Creating a strong culture within your work environment is essential to your company’s success. Read on for the four components that create great culture.

Vision

The daily grind is difficult to get through but one thing always shines through—vision.

Creating and sharing the company’s purpose to your staff can help them share in that vision. Consider asking your employees how they can support the company’s vision and one thing they can do differently to achieve it.

Values

It’s important your company values align with your employee’s values. If your company doesn’t have values, here is an easy way to create them.

During your next all-hands meeting, set aside 15-30 minutes to brainstorm what values matter in the workplace. Write every value you hear down. Once you’ve exhausted options, have your employees write down their top 3-5 of the values. Tally the results on your own time, then share the values voted on by you and your employees during your next all-hands meeting!

(Note, some values may emerge in overarching themes. For example, teamwork could also be described as collaboration, unity, combined effort, and more.)

Practices

Establish sound practices and rid your business of inconsistencies. Keep the door open with your employees to share inconsistencies, and be prepared to determine better workflows.

People

Leverage your employees strengths to increase company culture. When your employees are happy, productivity increases, and is a win-win for both parties.

Inspiration for this post came from “Create a Winning Team” by Melisa Morrison published in the August 2022 issue of American Quilt Retailer. Morrison has over 30 years of experience in Human Resources and is a former quilt shop owner. Stay tuned next week on ways to communicate employee expectations.

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.

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Employee Handbook Part 2

employee handbook

Last week we covered where to start on your employee handbook. Now we’ll cover how to fill in the bones. Read on for a policy outline as well as state and federal regulations.

State and Federal Regulations

Firstly, employment laws change frequently and vary by location. Some recent updates that come to mind include legalization of marijuana and open-carry laws. Both would necessitate an employment policy if these apply to your location.

Second, the best place to start for federal regulations is at the U.S. Department of Labor. We also encourage you to subscribe to their email updates.

Next, each state has an organization that deals with employment law. We recommend you become familiar with your state’s Department of Labor website resources and utilize state contracts. You can find links to individual state offices at the DOL website.

Finally, you always have the option to contract with an employment law attorney who will send you the appropriate legislative updates. This is a huge time-saver and overall the best practice from a liability standpoint.

Handbook Outline

Last but not least, check out below for a way to structure your employee handbook:

  • Introduction to the Company and Values
    • Company mission statement
    • Why you were founded
    • Insight into company culture
  • Employment
    • Local, state, or federally mandated policies
    • General employment policies such as hiring and termination guidelines
  • Compensation
    • Work schedules
    • Lunch and break periods
    • Time reporting
  • Benefits
    • Vacation, sick leave and other time-off policies
    • Employee discounts
  • Workplace Guidelines
    • Safety and security
    • Use of company equipment and services
  • Work Rules / Standards of Conduct
    • Dress code / grooming
    • Cell phone use / personal calls / visitors

We hope you found this information useful in getting started with your employee handbook. 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. Melisa has over 30 years of experience in HR and is the Director of Human Resources for Latex Construction Company.

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.