During times of growth, many businesses focus their energy — and money — on areas that are absolutely necessary to company survival. That means that plenty of small businesses and new companies may eschew traditional HR while trying to remain lean and focused on keeping the vital organs running.
While this method may generally work, sometimes the lack of HR can cause massive internal damage. One example is a situation where worker protections are questioned, sometimes without clear answers.
It is clear that without a dedicated and functioning HR department, there are gaps left in the organization’s management. Yet, due to the lean growth, it may be necessary. So, how can a business grow while both keeping lean and doing right by the company employees? Below, members of Forbes Human Resources Council shed light on how to manage worker protection and associated risks during a time of growth.
1. Understand The Relevant Laws
Business owners should become familiar with the federal and state labor and employment laws that govern their business. They should develop policies and create employee handbooks that align with these laws. Business owners should consult an HR consultant or employment lawyer for advice on complex employee issues. They should also ensure that all employees know and understand the company policies. - Ochuko Dasimaka, Career Heights Consulting, Inc.
2. Consider A PEO To Help
While business owners have the knowledge required to sell a product or service and run a business, HR professionals possess the expertise to help ensure the business remains compliant with labor laws and employment standards. Companies looking to remain lean should consider working with a professional employer organization (PEO) for their HR needs to ensure compliance and avoid the risks associated with eliminating HR altogether. - John Feldmann, Insperity
3. Educate Yourself
The risks of making a mistake are too high; a costly employment lawsuit can be devastating for a small business. Fortunately, there are a variety of ways to receive the education and assess the information needed. Many sites offer low-cost or free webinars that share employment information that every business, large or small, should know. - Melinda Godfrey, Seakeeper, Inc.
4. Be Responsible
Whether an employer has an HR presence or not, someone in the organization has to be aware of employment law, and be responsible to ensure that it is followed. Additionally, ensuring a proper employee handbook is in place that outlines expectations and allows for employees to have a mechanism to report issues is important. Having an attorney to discuss issues with is also a means to minimize risk. - Kellie Graham SHRM-SCP, SPHR
5. Stay Compliant
Violating worker protections is a high-risk, low-reward trade-off. There's an old maxim that says ignorance of the law excuses no one, so small business owners must know which federal, state and local protections apply to their workforce. The good news is there's no shortage of resources available, ranging from free government websites to paid consulting services, to mitigate associated risks. - Dr. Timothy J. Giardino, Cantata Health
6. Develop Strong, Compliant Policies
Every business should spend the money to develop strong, compliant policies and procedures. Then, with little to no HR support, the owner need only focus on consistent application of those policies. We encourage our clients to engage us on a limited basis for "mentorship" during this period so we can provide issue-centric employment law support when full-time HR is not yet an option. - Cristin Heyns-Bousliman, Human Resources Experience, LLC
7. Contact An HR Professional For Advice
Worker protections are the law. If a company breaks the law, it will pay the price. Contact the federal and state agencies for information. They may provide valuable information to ensure you are in compliance. Most workers compensation insurance companies will provide OSHA compliance help free of charge. When an issue does arise, at minimum contact an HR professional for advice. - Patricia Sharkey, Sharkey HR Advisors
8. Disseminate The Rules In Writing
Spend resources to create an employee handbook with company policies. Even with 10 employees, formal and informal policies, procedures, benefits and general employment information must be disseminated. Defining expectations of behavior protects employees and the company. While it’s not 100% legally foolproof, having them written down helps you with disputes, discipline and potential lawsuits. - Cameron Bishop, SkillPath
9. Commit To Asset-Risk Assessment
Employees are assets and choosing to solidly commit to assessing risk will permeate throughout your organization and employment practices. Do not think you are above the law as a small business owner. Commit to adhering to proper employment practices, then seek to understand. There are plenty of consultants and HR professionals who will help you understand the basics to set you up for success. - Christine Wzorek, Disruptive Advertising
10. Establish Your Company Values Early
The best way to start is by creating company values (yes, even in a tiny company) that describe the expectations for how employees work together. This will give you a language to use to address performance issues, make sure managers and leaders are behaving well and ensure that there are clear expectations for how people are treated. - Laura Hamill, Limeade
