Even though your business is a small one, it makes sense to follow some universal employee guidelines. Many small operators will hire friends and family. They may only need a few employees. For this reason, you may not think you won’t need any human resource policies, but the reality is that even small businesses need HR policies. It would be a good idea to set a few guidelines for your business, too. Your well communicated expectations will not only help you, but also help your employees know what to expect from you.
Vacation and Sick Leave
People want a paid vacation, and they deserve to get one, so set a policy and stick to it. Many businesses set an accumulation rate at five or six hours per two week pay period. That gives the employee a about a week and a half of paid time off a year. Whatever you decide, be sure to stick to it. You can reward your employees’ loyalty and time with the company by increasing the hours per pay period after set number of years of service. Just be sure to work that paid time off into your payroll budget.
Disciplinary Action
Even small business owners need to be careful about arbitrary discipline. Many people have made some really dumb moves when it comes to firing staff. Set a policy that describes the course of corrective action up to termination, and stick to it. Always document disciplinary action. It’s your protection, should a disgruntled employee sue you because of the termination.
At the very least, set up these two HR policies to protect your small business.