Your Business With James Caan 2017 - 228
Treat them right
Human resource management is vital for any new business.
We look at the top areas you need to get right when starting out
ou may never have had contact with
human resources other than when
joining and leaving a company, but HR isn't
just about hiring and ﬁring. It's an area of
your business that could make the diﬀerence
between success and failure. "Investing
in companies means investing in people,
because without them a business will never
succeed," says James Caan. Here's what you
need to know when starting a business.
POLICIES AND PROCEDURES
Setting up policies and procedures for
issues such as sickness, absence and
grievances is worth doing as early as you
can. These will then become the blueprints
for everyone in the business in the future.
Putting in place a disciplinary and
grievance policy is the most important.
This will sort out how you'll manage any
disciplinary issues that arise and when
your solution should be to end the contract
of employment. Other policies you may
want to consider are a code of conduct and
attendance at work, including all reasons why
an employee may be (or not be) at work.
For help, ACAS (acas.org.uk) is a
useful resource that can oﬀer advice to
employers and employees. The CIPD
website (cipd.co.uk) has lots of information
and free resources on HR topics too.
The contract between you and an employee
should list all the terms and conditions
you need in place to run your business.
These include hours of work, pay, overtime
policy, holidays, notice periods, sick pay and
pension arrangements. You should be clear
about all these practical elements so your
expectations and obligations are met and
there are clear boundaries for employees.
Payroll involves paying your employees
the right amount each week or month,
and deducting tax and national insurance
contributions. You can do this yourself
or contract it out, but you have a legal
obligation to pay your employees, produce
pay statements and manage PAYE and
national insurance contributions. The
consequences of not doing this correctly can
be expensive and this is something that, as
a start-up, you cannot aﬀord to get wrong.
As a new business, you need to attract
employees who will be as passionate about
your business as you are and are able to
multi-task in a small team, fulﬁlling several
roles at the same time. For this reason it's
important to have a job description in place
that both you and the employee are happy
with - and that also oﬀers ﬂexibility.
It's important to have regular appraisals,
even if you think you don't have time.
Being open and working on goals with your
employees is key for staﬀ retention, job
satisfaction and development. If you struggle
with the formalities of appraisals, they can
be outsourced to external HR companies
(along with other elements of HR). In fact,
having someone outside the company do this
can boost employee engagement and have a
direct impact on reducing staﬃng problems.
Your employees will be more productive and
eﬃcient if they are trained properly. Areas
to focus on include using any equipment,
dealing with customers, ordering stock
and company-speciﬁc processes. Letting
your staﬀ know your expectations and
how you'd like them to perform will give
them more of an opportunity to excel,
which in turn is good for your business.
If your employees are involved in the business
and know the long-term goals, they will be
more engaged and motivated to succeed
because they will feel part of the process.
Consider what business information, strategy
and updates you can share to engage your
team and oﬀer clear goals so your workers
know what their top priorities are. Employees
are more likely to do things for leaders they
believe in. You can increase trust by listening
and involving workers in key decisions.
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