“My small business is my home away from home – we are like a family”
Is that the opinion of both the owner and the employees?
My guess is that in many cases it is the owner trying to convince himself that his happy band of employees are thrilled to be working for him and all is well on the home front.
But do the employees view the company the same way?
Unless you are highly skilled at managing your employees, building this kind of environment will depend very much on your leadership style and the calibre and inclinations of your work force.
Barriers to finding the right person for the job
I was once told by a HR consultant that people are, in the main, mercenary when it comes to job hunting, and this did not refer to monetary rewards only. It is one of many HR challenges Small Business Owners (SBO’s) must deal with when attempting to employ the right person for the job, particularly if the job is “technical” in nature.
Being unable to offer the same salaries, benefits packages and growth opportunities that their larger counterparts can, some SBO’s may feel that the pool for top employees is limited as the higher skilled individuals will follow the money.
Compounding the problem is the very real fact that not only is it difficult to attract the right employee, it is often impossible to keep them for any length of time.
I was recently talking to some of my local SBO’s about this very problem and asked them what criteria they use to employ technically skilled people. The consensus appeared to be that using one of two possible methods had become the norm, namely:
- Look for young recently qualified job seekers and try and mentor them into senior positions over a period of time, or
- Look for experienced folk who are a bit more senior in their years, have done the corporate bit, enjoy what they do and don’t have a penchant for climbing ladders.
Unfortunately, neither method is bulletproof and present their own unique set of problems.
Once trained, younger folks will tend to be attracted to the large corporates who are better positioned to meet their financial and growth aspirations.
On the flip side, the more streetwise employee can sometimes be a hard case to manage and your authority as “the boss” can be diluted by them being more experienced.
That said, the reality is the company needs to employ the very best people it can afford and so trying to set markers that are not achievable may be a waste of time.
Does this mean that small businesses only attract lower skilled and less motivated or ambitious employees? Quite to the contrary.
Many young entrepreneurs have wet their appetites for business ownership doing their apprenticeships or internships with small and medium sized companies. By the same token, not everyone wants to work in the corporate world and I am sure there are many skilled, qualified and eager job-seeking folks who are very happy to spend a substantial portion of their careers working for small companies.
Employee relationships
Irrespective of the real or perceived quality, or lack of quality, in the work force, it is beholden on the owner to develop a friendly, progressive and interactive working environment for ALL employees.
Managing employees is no easy task and no matter how talented and hard working the owner is, without a commensurate pull in the same direction by everyone in the company, disaster could be lurking behind the next order.
Therefore, in the interests of creating a viable and productive “team” the owner must concede that without the other team members not much in the way of making money is going to happen.
To support this approach, employees need to feel appreciated, able to contribute suggestions and opinions (especially in times of crises), are well informed as to the business objectives and reap the financial and other rewards when times are good.
Regrettably, not even the happiest of employees will stay forever no matter the size of the company. Each individual has their own goals and responsibilities and so when they do opt out, don’t take it personally.
The rulebook
Functional and productive teams, or close-knit groups of workers (a.k.a. a family environment) are born out of mutual respect, support and consistently effective leadership.
A good starting point in creating such an environment is to implement a set of company rules.
People can be a fickle bunch, and I have always had the belief that managing people is an art, some folks have the knack but many others don’t. Certainly, training and mentoring will improve or enhance a manager’s skills, but it is a function that if not handled sensitively, can make or break a company or department.
Small businesses are just that, small, which means owners and their employees are constantly bumping into each other every day and this can lead to some inappropriate situations.
One way to ensure acceptable behaviours by all is through the implementation of a defined set of rules that makes it clear to all employees as to how the company will operate.
When setting rules for the employees be logical and selective. Stupid rules can be very destructive.
Related read: Ten Stupid Rules That Drive Great Employees Away
You are the boss
That’s right – it’s your company, your investment and hopefully not only your future but also that of your offspring.
You will end up having to make the final decisions and all the decision-making processes should be implemented on the premise that you will do what is right for the company.
This does not mean you have to isolate yourself from everyone and ignore the advice or council of experienced employees, but it does mean that the buck stops with you and the interests of the company, and your immediate family must take precedent.
Familiarity breeds contempt and there should always be a line over which the owner should not step when it comes to social interaction with employees. No, that doesn’t make you a dictator and unapproachable, but overly close relationships with employees can have devastating consequences.
Create policies and procedures
No matter how small the company is, develop a set of policies and procedures which will govern the way the company operates and clearly states what is, and what is not allowed, during work hours.
Similarly design individual job descriptions for each position and ensure the employee understands what is expected from him or her.
Know the law of employment
If you can’t afford a lawyer familiarise yourself with the entire relevant legislation which covers employment. Understand that employees have very specific rights and as you expect them to abide by your policies and procedures, you need to abide by the law.
Draw up a disciplinary code and have employees sign it
Don’t be afraid to get rid of bad employees. Ensure your disciplinary process is legal and then implement it when needed.
Employee benefits
Acknowledging that it is difficult to match the terms and conditions of employment offered by larger companies, offer what you can. Support your employees wherever possible, be it study time to further their education or just a day off here and there for exceptional work.
Reward extra effort and discipline slackers.
Assumptions
In an article on AllBusiness.com, Managing Employees: 5 Scary Small-Business Mistakes, the author, The evil HR lady (that name conjures up all sorts of images) states:
“Small business owners are willing to make sacrifices for the success of the company, and they assume their employees should be just as willing to make sacrifices. It’s kind of like how some parents think their kids are so fabulous that they’re boggled when people don’t line up around the block to babysit the little darlings.”
She goes on to list 5 “scary” assumptions that SBO’s should avoid making. These include:
- The assumption that the business is a “family type environment” which may, in reality, differ from the employees perceptions;
- Owners assume nepotism and employing friends when they do not have the requisite skills is acceptable to other staff;
- Assuming that if the owner has to retrench, HR policies such as “Last in, First out” must apply. Keep the best employees;
- Owners assume they can ignore employment law;
- The owner waits too long to fire bad employees based on the assumption that they will improve.
I would like to add a sixth scary assumption, and that is:
- Owners assume that their employees are untrustworthy and incapable of assuming responsibility and accountability, resulting in the owner becoming involved in menial activities instead of focusing on the bigger picture, namely running the company.
In conclusion
Finding the right employee is difficult and patience and selectivity are required.
A suggestion; the next time you need to employ someone, maybe consider your existing employees as opposed to immediately looking outside. You might be pleasantly surprised at how many “rough diamonds” you already employ.
If it is taking too long to source an applicant for a particular position, consider outsourcing in the interim.