HOW TO MANAGE EMPLOYEES IN A SMALL BUSINESS

By VICKY BROWN

Small businesses are great. They’re nimble, flexible, and team members get to be close to the action and see the impact their work has on the business.

And for the leader, the close contact with the team enhances the feeling of all being in this together.

But, while many leaders know there are vast differences in managing in a large organization vs. a small business – they often question the best way to manage employees in a small company.

Here are 4 important points to keep in mind when managing in a small business.

#1 – get the right people in the right seats

In an earlier episode, we talked about how to get the right people in the right seats in your business.  That should be step #1, because without the right people, the other steps just won’t work.

Another note –  be VERY careful about hiring family and particularly friends.  Remember, at some point the role of friend and boss will be in conflict, and you’ll have to make the difficult decision of which you need to be.  I’ll give you a hint, it’s boss.  Why, because, you have to think about the jobs of more than one person here – you’re the leader of the business, remember?  And keeping it healthy and successful has to be your #1 goal, otherwise everyone loses.

…… huge fines hurt huge businesses, but they wipe out small businesses.

#2 – don’t make HR an afterthought

I hear all the time that ‘well we’re so small that xyz doesn’t apply to us…..’ banish that phrase.  To your team, the company is huge, it provides their livelihood, and they’ve taken the leap and put their trust and commitment in you and the business you’ve built  You may be boutique in size, but you’re still a business.  An employer.  And your obligations and responsibilities still matter.

Also, to the regulatory agencies, you’re never too small.  You know what they say, in for a penny, in for a pound – if you have just one employee, you’re an employer.  So the ‘oh, I knew she was born here – that’s why we didn’t do an I-9 authorization form for her’, or ‘well, if anyone gets hurt, I just send them to my doctor and pay for it – there’s no need for formal workers compensation insurance’, or….well – you get the idea.  None, and I mean none, of that will fly.  And remember, huge fines hurt huge businesses, but they wipe out small businesses.  So make sure you get it right from the very beginning.

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#3 – communication, communication, communication, don’t assume everyone knows everything.

Communicate everything you can as often as you can (you may not be the open book manager type, but you can still communicate well).  And remember, as you grow not everyone will hear or weigh in on everything like they may have in the beginning.  So make sure you put a process in place to keep everyone in the loop when they need it.  Trust me, assuming it will all just go fine, is a recipe for disaster.

And while we’re talking communication, make sure you deal with employee issues right away.  Be clear on your standards, and that there are consequences.  Now, I’m not advocating that you become mean mommy, but standards without consequences for failure to follow them, means you don’t have any standards at all.   And yes, incentives are great – model the behavior you want, praise good behavior when you see it – but I still say, no consequences, no standards.

And #4 – be friendly but not casual

Another phrase I hear often is – we’re just like family, everyone will always want to pitch in and give 150%.  But your team isn’t your family, and you aren’t theirs.  And they don’t want to be treated like your family, they want steady paychecks, and clear responsibilities, and a solid path to career development.

Remember this is their livelihood.  Making the company successful, and being treated well isn’t a casual issue for them and it shouldn’t seem to be for you.

You’re the leader, act like one – you can’t just blurt out everything you’re feeling all the time, they need to see confidence, stability and optimism.  Don’t lie, but be aware of how you are being seen.

You’re the coach, and a coach has to motivate, have a plan, and be confident that everyone can successfully execute on that plan

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