Summary:
Involve an employment attorney or HR consultant in your business planning for compliance.
Clear job descriptions and an Employee Handbook are essential for onboarding.
Hire slowly to ensure you build a strong company culture.
Networking is key for attracting top talent without a large budget.
Start small with benefits and gradually enhance offerings as the company grows.
Starting a business comes with numerous challenges, and Human Resources often gets overlooked in the rush. In this Q&A, Rhonda Beard, Human Resources consultant and trainer for Bench Builders in Chattanooga, shares valuable insights for entrepreneurs looking to attract top talent, build a robust company culture, and create effective benefit plans on a tight budget.
Key HR Advice for New Businesses
Most new businesses operate without a budget or the need for a full-time HR manager initially. It's crucial to involve an employment attorney or HR consultant in your planning process to ensure compliance with applicable laws. Additionally, define the company culture you wish to create and have strategies for recruiting, onboarding, and training in place before hiring.
Common HR Mistakes to Avoid
New business owners often overlook what potential employees are searching for. Establishing clear job descriptions, creating an Employee Handbook with relevant policies, and developing a benefit strategy are foundational steps. A comprehensive onboarding and training plan is essential for making a great first impression on new hires.
Building a Strong Company Culture
Your initial employees are vital in steering the direction of your business. Hire slowly and thoughtfully to ensure you have the right talent. Maintain constant communication regarding expectations, company vision, and growth strategy. Encourage your team to share their insights and suggestions, as they can provide valuable perspectives that you may not have considered.
Attracting Top Talent on a Budget
Networking is key—inform friends and colleagues when hiring. Utilize job sites like Indeed and LinkedIn to post positions for free. Sponsoring job postings for enhanced visibility can also be a cost-effective strategy.
Creating Competitive Benefits Packages
If budget constraints exist, start small and gradually enhance your benefits package. The most sought-after benefits include medical coverage and paid time off. You can establish a basic medical plan with shared premium costs and offer a generous paid time-off policy. A 401k plan is also a straightforward and inexpensive benefit that can start with employee contributions only.
Legal and Compliance Considerations
Be aware of compliance with the Fair Labor Standards Act (FLSA), including correct classification and payment of employees. Ensure legal hiring practices through the completion of I-9s and E-Verify. Company policies should include legal requirements and positions on harassment and compliance with the Americans with Disabilities Act (ADA). Consulting a labor attorney or HR consultant can help ensure all legal requirements are met.
Rhonda Beard has over two decades of experience leading HR functions across various industries, including banking and manufacturing. She is the current president of the Chattanooga chapter of the Society of Human Resources Management.
Comments