Small Business Big World Episode 24: HR 101 Essentials for Small Businesses
This is Small Business Big World, our weekly podcast prepared by the team at Paper Trails. Owning and running a small business is hard. Each week we’ll dive into the challenges, headaches, trends, fun and excitement of running a small business. After all, small businesses are the heartbeat of America and our team is here to keep them beating.
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Effective HR management is the backbone of any successful small business. Without it, even the most promising companies can falter. In the latest episode of Small Business Big World, HR consultant Dawn Pahel dives into the essential HR 101 practices that can make or break your small business. Whether you’re grappling with employee classification, navigating compliance, or managing a remote workforce, Dawn’s expertise offers invaluable guidance. At Paper Trails, we’re passionate about helping small businesses tackle these challenges, so you can focus on what you do best.
Understanding Employee Classification
One of the foundational aspects of HR is understanding the distinctions between exempt and non-exempt employees. Dawn Pahel explains that exempt employees are typically salaried and not eligible for overtime, while non-exempt employees are hourly and entitled to overtime pay. This classification isn’t just a matter of terminology; it has significant implications for your payroll and compliance with labor laws. For example, recent changes in federal regulations have raised the salary threshold for exempt employees, meaning more workers might now qualify for overtime. Staying updated on these regulations is crucial for accurate budgeting and financial planning.
Staying Compliant with Labor Laws
Compliance with labor laws is another critical area that small businesses cannot afford to overlook. Dawn emphasizes the importance of keeping labor law posters updated and accessible to all employees, whether they’re in the office or working remotely. This ensures that employees are aware of their rights and helps you avoid potential legal issues. The conversation also delves into the complexities of managing remote employees who work in different states, each with its own labor laws. It’s essential to comply with the regulations in the state where the employee is working, not just where your business is located. Resources like the SHRM Society for Human Resources Management website and the Department of Labor website can help you stay informed about these changes.
Annual Harassment Training
Annual harassment training is another compliance requirement that Dawn discusses. States like Maine and California have specific mandates for harassment training, and it’s essential for businesses to adhere to these rules. Digital training solutions can be particularly beneficial for seasonal businesses, allowing them to conduct mandatory training efficiently. Additionally, proper documentation, including the meticulous handling of I-9 forms, is crucial. These forms must be completed accurately and stored separately from other employee files to avoid hefty fines. Dawn shares an HR horror story about a company with zero employee files, underscoring the importance of proper documentation.
Performance Development and Succession Planning
Performance development and succession planning are strategic elements that can significantly boost your business’s performance. Regular performance reviews help employees understand their roles and expectations, fostering a culture of growth and development. Dawn recommends having a performance management plan for each employee, setting clear goals and providing a path for advancement. This approach not only enhances employee satisfaction but also prepares your business for future growth. Succession planning is equally important, especially for key roles within your organization. Having backup plans for extended absences or unexpected departures ensures that your business operations continue smoothly.
Managing a Remote Workforce
Managing a remote workforce presents unique challenges, but Dawn offers practical strategies to make it work. Keeping digital labor law posters accessible to remote employees is one such strategy. Regular check-ins and clear communication channels are also vital to managing remote teams effectively. Utilizing project management tools and setting clear expectations can help maintain productivity and keep everyone on the same page.
HR Tips for Seasonal Businesses
For seasonal businesses, HR management can be particularly challenging. Dawn suggests leveraging digital training solutions to meet compliance requirements and streamline the onboarding process. Seasonal businesses often have a high turnover rate, making it essential to have efficient systems in place for training and documentation. Ensuring that all employee documentation is accurate and up-to-date can prevent legal issues and improve overall efficiency.
Conclusion
Mastering HR for your small business involves understanding employee classification, staying compliant with labor laws, managing remote teams, and focusing on performance development and succession planning. By implementing these strategies, you can create a compliant and efficient HR framework that supports your business’s growth and success. Don’t miss out on the invaluable insights shared by Dawn Pahel in this episode of Small Business Big World. Tune in to the full episode to gain a deeper understanding of how to navigate these HR complexities and ensure your business thrives. Also, check out more about our local and expert-led HR consulting services here.
This podcast is a production of Paper Trails. We are a payroll and HR company based in Kennebunk, Maine, and we serve small and mid-sized businesses across New England and the country. If you found this podcast helpful, don’t forget to follow us at at Paper Trails Payroll across all social media platforms and check us out at papertrails.com for more information. As a reminder, the views, opinions and thoughts expressed by the hosts and guests alone. The material presented in this podcast is for general information purposes only and should not be considered legal or financial advice. By inviting this guest to our podcast, Paper Trails does not imply endorsement of or opposition to any specific individual, organization, product or service.