Hiring and Office Policies Once you have made the decision to hire a candidate, it is important to take the time to meet with the new employee and provide them with adequate training. You should also provide each new employee with a basic orientation that should include an overview of your company’s employee handbook and various policies including sexual harassment, Internet and cell phone usage, intraoffice dating, vacation, and sick leave. If your company does not have an employee handbook, you should create one. It is simply a written collection of policies and procedures concerning the way your employees are expected to act while they are at work.
Failing to have an adequate employee handbook can lead to significant liability. For example, a typical handbook contains a section advising employees that sexual harassment of any nature will not be tolerated. It then provides employees with instructions concerning who to contact should they feel that they are a victim of sexual harassment. Employees have won cases when the employer failed to have such a policy in writing or failed to enforce it.
Generic employee handbooks can be purchased on the Internet or can be prepared by attorneys or human-resource consultants. You need to have a handbook and understand the policies contained in it so that you can explain it to your employees. If you are confronted with time constraints, consider enlisting an outside consultant who can explain the policies and procedures to your staff.
Employee Training Seminars You should provide your employees with annual training on a variety of general employment topics. For example, every company with five or more employees should consider an annual workplace violence and sexual harassment training seminar. A seminar such as this can be helpful for your employees and can help to protect you from liability.
Another seminar that is worthwhile is one that discusses confidentiality in connection with your firm’s client list, prospects, designs, and other proprietary and sensitive materials. Many employees who violate the confidentiality terms of their employment were not aware that their actions constituted a breach. Training your employees about what to do regarding issues of confidentiality reduces the likelihood that you will experience a breach.
Employee Performance In addition to annual training, you need to conduct performance evaluations. Most employers conduct annual reviews, but it may also be beneficial to your company to conduct a six-month informal review. Regularly reviewing the performance of an employee will allow you to point to areas for improvement as well as acknowledge your employees’ contributions to your company.
Regular performance reviews can also protect employers from the effect of wrongful-termination lawsuits, provided that the reviews are accurate and honest. For example, if an employee was fired due to excessive tardiness and that employee attempts to sue alleging discrimination, the performance review can be used as evidence to support the employer’s nondiscriminatory basis for the termination.
Termination Regardless of how effective your human-resource management is, unfortunately, situations arise that necessitate releasing an employee. In general, firing an employee for financial reasons is a hard decision, but it does not often result in litigation. But when you fire an employee for improper behavior or ineffective performance, it is recommended that you speak to an attorney or human-resources consultant beforehand to ensure that you handle the termination properly, and to avoid litigation. There are a number of laws concerning what employers can and cannot do when terminating an employee. For example, employers often offer severance pay in exchange for the employee signing a release and waiver of liability. Depending upon the state and the wording of the agreement, such an action may be unlawful.
When an employee makes the decision to leave, you should conduct an exit interview. This will afford you an opportunity to recover any company property, including office keys, cell phones, and laptop computers. It also gives you an opportunity to ask the employee about his or her reason for leaving and presents you with an opportunity to gather some constructive criticism about how you are running the business.
So while it may not be on the top of your list of things to take care of, human-resource management should never be taken lightly. While improper management can result in significant liability, effective management can increase your firm’s reputation, productivity, and revenue. These employment issues are complicated and often overwhelm even the most seasoned business owner, so employers should never hesitate to seek assistance from trained professionals in order to prevent problems and to keep their business running smoothly.