Probably more than you care to remember. We all know the statement is true. We also know that taking care of that important resource requires time and money. But what successful leaders know, and what research confirms, is that the return is worth every penny of the investment.

I once had an owner of a small engineering firm tell me that as soon as he hired his second employee he found himself spending time on "people issues". So what can employers, even small employers, do to help take care of their resources without tying up hours of management time?

Establishing and maintaining business systems based on the following seven key elements is a great start.

1. FUN. Everyone is working hard these days - doing more with less. Find ways to breathe fun and humor into your business. Learning to laugh at ourselves is powerful medicine. And let’s face it — we all have a lot of material to draw from.
   
   
2. FAIRNESS. Treating all employees in the same consistent manner is critical. Policies, procedures and daily practices on issues related to human resource management, (i.e., recruiting, motivating, termination, etc.) should support this mantra. As the HR functions are delegated, consistency relies on having written procedures and training employees responsible for adherence.
   
   
3. ETHICS. The workplace is a much more complicated environment. Establishing a standard for business behavior is a very proactive approach to avoiding embarrassment and costly lawsuits. Educating employees about these values, asking them to reflect on how they would feel if their actions were reported on the front page of the newspaper, and establishing open door policies can go a long way to addressing this issue.
   
   
4. COMMUNICATION. One universal need, regardless of company size, is for employees to be aware of what is occurring and why. Establish paths for two way dialogue that provides management an avenue to announce and explain business issues while at the same time allowing employees to raise questions without fear of retaliation. We’re fortunate to have many technological gadgets to assist in this mission, but don’t undervalue the power of face-to-face interaction.
   
   
5. COMPLIANCE. No one likes to admit or be a part of a team that’s not playing by the rules. Employees value being a contributing member of a winning team. Being out of compliance with employment regulations is short changing the employee, organization and client. In the long run the risk is not worth the cost.
   
   
6. DIVERSITY. The world continues to spin faster and faster and it’s increasingly important for us to learn to appreciate the ways we are different and to experience the "high" of the synergy that comes from valuing these gifts. Workforce 2000 prepares us for an increasingly diverse pool of candidates. Removing any barriers that prevent the success of all employees is a must.
   
   
7. FEEDBACK. Everyone likes to know they are contributing to overall business goals and that their efforts are appreciated. Although annual performance evaluations are important, on-the-spot recognition goes a long way at reinforcing and motivating employees. For those occasions when performance is less than expected, providing specific feedback and examples, while coaching the employee about how things could have been handled differently, will aid the employee in modifying his/her behavior.

Establishing policies, procedures and practices that embrace these seven elements allows management to delegate the day-to-day operations of the human resource function. Often in organizations of less than 150 employees the maintenance of these systems can be performed by administrative staff, freeing management to focus on new business and client relations. An organization is well served by conducting an annual HR audit to confirm compliance with federal and state regulations and established procedures.

It’s best to be proactive in identifying and correcting problems before they get out-of-hand and result in costly lawsuits and damaged employee and client relationships.

Yes, even small business must take care of HR business issues. It’s not difficult, all it takes is a plan.

© Debbie King, Evolution Management, Inc.  All Rights Reserved.