hr thoughts for start ups and small businesses

Laura JacobPresident, Pro Way Development, LLC– Connecting HR to your Bottom Line

2039610227www.prowaydevelopment.com

[email protected]/in/laurajacob

1Pro Way Development, LLC

Pro Way Development, LLC2

� Managing the HR Function

� Company culture – a place to start

� Before you hire your first employee

� Employee life cycle

� Legal pitfalls

� Some thoughts on ◦ Staffing

◦ Compensation

◦ Managing Performance

� Q&A


1) Office manager/owner/CFO

2) PEO (Professional Employer Organization)

3) Outsource

4) Not at all


� Register your business

� Worker’s compensation insurance

� Unemployment insurance

� Order federal and state posters


� Think about the employee life cycle◦ Recruitment

◦ Compensation & Benefits

◦ Payroll & Tax administration

◦ Employee Relations

◦ Training & Development

◦ Performance Management

◦ Terminations

� Corporate Culture?


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“The talented employee may join a company because of its charismatic leaders, its generous benefits, and its world-class training programs, but how long that employee stays and how productive he is while he is there is determined by his relationship with his immediate supervisor.”

Pro Way Development, LLCMarcus Buckingham, First Break All the Rules

- What the World’s Greatest Managers Do Differently p 11-12

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1) Do I know what is expected of me at work?

2) Do have I the materials and equipment I need to do my job?

3) At work, do I have the opportunity to do what I do best every day?

4) In the last seven days, have I received recognition or praise for doing good work?

5) Does my supervisor, or someone at work, seem to care about me as a person?

6) Is there someone at work who encourages my development?

Marcus Buckingham, First Break All the Rules

- What the World’s Greatest Managers Do Differently p 28

Pro Way Development, LLC

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7) At work, do my opinions seem to count?

8) Does the mission / purpose of my company make me feel important?

9) Are my co-workers committed to doing quality work?

10) Do I have a best friend at work?

11) In the last six months, has someone at work talked to me about my progress?

12) This last year have I had the opportunity to learn and grow?

Marcus Buckingham, First Break All the Rules

- What the World’s Greatest Managers Do Differently p 28


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� Nice Nice Nice Nice ---- How you treat one another is the basis for how you will treat your customers.

� Trust Trust Trust Trust ---- Having faith in your employees is the most important component of building relationships.

� Pride Pride Pride Pride ---- Make your people an implicit part of your company mission statement and be sure to give them the environment, the tools, and the education they need to do their jobs well.

� Include Include Include Include - Reach out to your employees for input on business decisions or changes in areas where they are particularly gifted or well-versed. Then take their suggestions into account when making changes or starting new initiatives.

� Recognize Recognize Recognize Recognize ---- Take the time to celebrate victories, big and small, by your staff and know enough about them to know how they’d best like to be recognized Personalizing rewards

makes them really matter.

Hug Your Customers: The Proven Way To Personalize Sales and Achieve Astounding Results. Jack Mitchell

Pro Way Development , LLC

� Knowledge

� Skills

� Abilities

� Where to find the people?

� 1099/ W2

� Recruiting to realistic job descriptions

� Job applications� Background checks� Behavior based interviewing

� On-boarding plans� Proper I-9 storage � Employee orientation� Handbook sign off� Non competes

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� Compensation◦ Compensation plans to drive results

◦ Cash and non cash incentives

◦ Salary Surveys

◦ Payroll and Payroll Taxes

◦ 401(k)

� Benefits – that motivate◦ Healthcare

◦ Voluntary

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Maslow’sHierarchyof Needs

Career

Salary / OSHA

Benefits

Work Friends/Positive setting

Job title/Respect

Promotion/PerformanceManagement

trainingbubble.com


� IR-2010-48, April 19, 2010 Recent enactment of small business health care tax credit.

� Credit available to small employers that pay at least half the cost of single coverage for their employees in 2010.

� Specifically targeted to help small businesses and tax-exempt organizations that primarily employ low- and moderate-income workers.

� For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small business employers and 25 percent of premiums paid by eligible employers that are tax-exempt organizations.

� Maximum credit goes to smaller employers — those with 10 or fewer full-time equivalent (FTE) employees — paying annual average wages of $25,000 or less.

� The credit is completely phased out for employers that have 25 FTEs or more or that pay average wages of $50,000 per year or more.

� Eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011.

Pro Way Development, LLC 14

� Department of Labor issues◦ Wage and Hour◦ Employee classification and overtime◦ 1099 vs W2◦ Pay Schedule – needs to be consistent

� Discrimination◦ CT –Harassment Prevention Training for companies of 50+◦ CT protects against discrimination based on Race, National origin, Color, Religion, Sex, Disability, Pregnancy, Citizenship, Uniformed services Age 40 and over, Ancestry, Marital status, Present or past history of -mental disability, mental retardation, learning disability or physical disability (including blindness), Sexual Orientation◦ ADA◦ ADEA◦ FMLA


� For example: FMLA ◦ “The U.S. Department of Labor (DOL) on June 22, 2010, clarified the definition of “son and daughter” under the Family and Medical Leave Act (FMLA) to ensure that an employee who assumes the role of caring for a child receives parental rights to family leave regardless of the legal or biological relationship. The DOL interpretation applies to nontraditional families, including unmarried partners and families in the lesbian-gay-bisexual-transgender (LGBT) community.”


� Employee Relations◦ Communication?

◦ Employee Issues?

◦ Feedback...

...is a healthy communication between you and a team member or leader that reinforces competence and aligns expectations

towards a business-related goal.


� Start

� Stop

� Continue


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Train? Manage? Terminate?

Skill/Will MatrixSkill/Will MatrixSkill/Will MatrixSkill/Will Matrix

Low SkillLow SkillLow SkillLow Skill High SkillHigh SkillHigh SkillHigh Skill

Low WillLow WillLow WillLow Will

High High High High WillWillWillWill

GUIDEGUIDEGUIDEGUIDE DELEGATEDELEGATEDELEGATEDELEGATE

DIRECTDIRECTDIRECTDIRECT EXCITEEXCITEEXCITEEXCITE


www.prowaydevelopment.com

[email protected]

www.linkedin.com/in/laurajacob

203.961.0227


hr thoughts for start ups and small businesses

Documents

worlds greatest managers

premiums paid

exempt organizations

marcus buckingham

maximum credit

credit

tax

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