Hiring your first employee is a significant milestone in your entrepreneurial journey. It marks a pivotal moment where you transition from solopreneur to employer, paving the way for growth and scalability in your business. However, navigating this process requires careful consideration and strategic planning to ensure that your first hire is the right fit for your team and contributes to your long-term success.

Meet the Experts

Joy M. Hutton

 is the Founder of Joy of Consulting, a management consulting firm and on the go GLAM™, a beauty on demand marketplace. Joy is an advocate of entrepreneurs and small businesses and serves on a number of small business councils and has a strong commitment to working with organizations that develop female entrepreneurs. Joy was honored by the City of Houston for her leadership in entrepreneurship. February 4, 2020 was named “Joy M. Hutton” Day. In honor of this day, she launched the LeadHERship Fund, a micro grant fund for female entrepreneurs.

Debbi Kritzmanis the Senior Vice President of Talent Acquisition, People Operations & Analytics at Global Atlantic Financial Group. Debbi has over 20 years of experience leading talent initiatives and building organizations leveraging best in class hiring practices and technology. Debbi is passionate about candidate experience and client centricity.

Understanding the Importance of Your First Hire

Your first employee represents more than just an extra set of hands – they are instrumental in shaping your company culture, driving productivity, and supporting your business goals. The decision to hire your first employee is a strategic one, with far-reaching implications for your business’s trajectory and success.

The Role of Your First Employee

When considering your first hire, it’s essential to clarify the role and responsibilities they will undertake. Identify the specific tasks and functions that need to be fulfilled to support your business operations and growth objectives. Whether it’s administrative support, customer service, or specialized expertise, define the role with clarity to attract the right candidates.

The Impact of Your First Hire

Your first employee sets the tone for your company culture and work environment. They contribute to the overall morale and dynamics of your team, influencing how future hires perceive your company. Additionally, hiring your first employee can alleviate the burden of workload, allowing you to focus on strategic initiatives and business growth.

Essential Considerations Before Hiring Your First Employee

Before embarking on the hiring process

, there are several key considerations that solopreneurs should address to ensure a successful outcome.

• Defining Your Budget: Determine your budget for employee compensation, including wages, benefits, and any additional expenses associated with hiring. Assess your financial resources and set realistic expectations for the investment required to bring on your first employee.
• Understanding Employment Laws: Familiarize yourself with basic employment laws and regulations to ensure compliance throughout the hiring process and beyond. Understand your obligations as an employer regarding wages, working hours, employee rights, and anti-discrimination laws.

Qualities to Look for in Your First Employee

When evaluating potential candidates for your first hire, prioritize qualities that align with your business values and contribute to operational success.

• Adaptability and Initiative: Look for candidates who demonstrate adaptability and a proactive approach to problem-solving. Your first employee should be able to navigate ambiguity and take initiative to contribute to the growth of your business.
• Reliability and Accountability: Seek individuals who are reliable and accountable for their actions. Your first employee should be someone you can trust to fulfill their responsibilities and meet deadlines consistently.
• Cultural Fit and Team Compatibility: Assess how well candidates align with your company culture and values. Consider how they will fit within your existing team dynamics and contribute to a positive work environment.

Crafting Effective Job Descriptions

Communicating your expectations clearly in job descriptions is essential for attracting qualified candidates who are the right fit for your business.

• Clear Role Responsibilities: Outline the specific duties and responsibilities of the role, including any required qualifications or skills. Clearly define what success looks like in the position to attract candidates who are motivated to excel.
• Highlighting Growth Opportunities: Emphasize opportunities for growth and development within your company. Communicate how the role contributes to the broader goals of the business and the potential for advancement over time.

Conducting Successful Interviews

Interviews play a crucial role in identifying the right candidate for your small, growing team. Here are some practical tips for conducting effective interviews:

• Prepare a structured interview format with predefined questions to assess candidates consistently.
• Use behavioral interview questions to gauge candidates’ past experiences and problem-solving abilities.
• Pay attention to non-verbal cues and interpersonal skills during the interview to assess cultural fit and compatibility with your team.

Creating an Attractive Work Environment

To attract and retain top talent, solopreneurs should focus on creating a work environment that values transparency, collaboration, and employee growth.

Professional Development Opportunities

Offer opportunities for professional growth and skill development to demonstrate your commitment to employee success. Provide access to training programs, workshops, and mentorship opportunities to support career advancement.

Flexible Work Arrangements

Consider implementing flexible work arrangements, such as remote work options or flexible hours, to accommodate employees’ diverse needs and preferences. Flexibility can enhance work-life balance and contribute to employee satisfaction and retention.

Fostering a Positive Company Culture

Creating a vibrant and inclusive company culture is essential for attracting and retaining top talent. A strong company culture sets the tone for how employees interact with one another, approach their work, and contribute to the overall success of the business.

• Values and Mission Alignment: Start by defining your company’s core values and mission statement. These guiding principles should reflect what your business stands for and the impact it aspires to make in the world. Communicate these values clearly to employees and integrate them into every aspect of your business operations.
• Open Communication and Transparency: Encourage open communication and transparency within your organization. Foster an environment where employees feel comfortable sharing ideas, feedback, and concerns. Transparency builds trust and empowers employees to take ownership of their work and contribute to the company’s success.
• Collaboration and Teamwork: Promote collaboration and teamwork across departments and teams. Encourage cross-functional collaboration on projects and initiatives to foster creativity, innovation, and problem-solving. Celebrate team successes and recognize individual contributions to promote a culture of appreciation and camaraderie.
• Work-Life Balance and Well-being: Prioritize employee well-being and work-life balance. Offer flexible work arrangements, such as remote work options or flexible hours, to accommodate employees’ diverse needs and preferences. Encourage employees to prioritize self-care and take breaks when needed to prevent burnout and promote overall well-being.
• Recognition and Rewards: Recognize and reward employees for their contributions and achievements. Implement a formal recognition program to acknowledge outstanding performance, milestones, and achievements. Celebrate successes as a team and show appreciation for employees’ hard work and dedication.
• Continuous Learning and Growth: Support employees’ professional development and career growth. Offer opportunities for training, skill development, and mentorship to help employees expand their knowledge and advance their careers within the organization. Invest in employee growth to foster loyalty and long-term commitment.

Empowering Your Business Through Strategic Hiring

In conclusion, hiring your first employee is a significant step toward building a successful and sustainable business. By understanding the importance of your first hire, addressing essential considerations before hiring, and prioritizing key qualities in candidates, you can set your business up for long-term success. With careful planning, effective communication, and a commitment to creating a positive work environment, you can attract and retain top talent that propels your business forward. Remember, your first hire is not just an employee – they are a partner in your entrepreneurial journey, contributing to the growth and success of your business.

One of the most compelling parts about being an entrepreneur is can live your dream by starting your own business. Since you’re the boss, you have the opportunity to create a compelling business vision, shape the culture of your company and are responsible for employee motivation.

Of course, as the founder and owner, you are intrinsically motivated to make your business vision come to fruition. It’s your blood, sweat, and tears that have built your business, not to mention your significant financial investment, on the line. And that financial investment is important—this isn’t just a paycheck for you.

But it’s not good enough for you to be motivated. You need a motivated team behind you. So how do you make sure that your employees share the same passion for your business that you do? How do you inspire your employees to get on board with your vision?

The Importance of Your Business Vision and Corporate Culture

Corporate culture is at the heart of any company

. A positive corporate culture can actually make employees work harder and a business becomes more profitable. Harvard Business School reports that “culture can account for 20-30% of the differential in corporate performance when compared with ‘culturally unremarkable’ competitors.”

One fundamental component of employee motivation is the strength of your business mission statement. A business mission statement can rally employees behind the business “cause” and inspire them to be their best. When you’re sharing your own company vision to motivate your employees, you need to make sure that you’re looking at tangible, concrete goals.

Do you have a mission statement? Is your mission statement something you share routinely with your employees? If not, it’s time to come up with the WHY behind the business. Your mission statement should reflect the goals and your business aspirations in just a few words so that you can use this to motivate your staff.

Aim high. Sharing exactly how you want to change the world with your business will certainly be more exciting to your staff than a spreadsheet of profit margins.

Supporting Your Company with the Right Team

The best way to make sure that your employees are on board with your company’s vision is to hire the right people. Your hiring practices should not only seek out the best, most-qualified candidates, but also those candidates who are the best fit for your company, your culture, and who can help fulfill your mission statement.

You want your employees to share your vision and connect with your values. If you find staff who meets those criteria, then it will be much easier to motivate them. For small business owners, there is a potential snag—you may have friends and/or family that want to be a part of the business but aren’t a good fit. There’s no easy way to handle that; you’ll need to decide if it makes sense to make space for them or if they’re going to be a drag on the business.

When you’re putting your staff together, you’re putting together the inner workings for your company. Finding the right combination of skills and personality make take some time, but it’s worth it. For tips on hiring check out our resources Hiring Your First Employee and Top 10 Questions to Ask When Hiring.

Listening to Your Employees Will Motivate Them

Business experts say a crucial component to employee motivation is listening. After you’ve staffed your business with the right team, the way you take feedback from that staff can make or break your business success.

Companies, where employees are heard, are more successful because the employees feel energized and connected to the work they do. Employees who are supported want to do their best work for the company. If you listen to your employees, respond to their concerns, and help them succeed, they will do the same for you. And you may find that listening to your employees can actually be extra motivating and inspiring for you!

For more on how to create a culture of excellence visit How to Create High-Performance Corporate Culture.

Get Excited

If you can excite your staff about your mission statement, hire the right people for the job who share your values, and listen to your employees, then you’re going to have employees who are excited to get on board with your company’s unique goals and aspirations.

Human resources management is one of the most important components of running a small business. Your employees are one of the greatest assets for any small business, as well as the key to keeping a successful business running well. But HR can be complicated. There are legal issues relating to pay, employment opportunities, insurance, and more. Plus, it can just be tough to find the right people for the job or to empower your employees to do their best work.

Here are a few tips for strengthening your HR department (even if it’s just you!).

What are Human Resources?

Human resources means anything that deals with your employees, including recruiting, management, or other forms of direction and assistance. Human resources directly impacts your business since your employees have a huge effect on the culture and your business environment.

Human resources departments are in charge of the following:

• Hiring and firing employees
• Employee training and team development
• Managing compensation and benefits
• Managing retirement plans
• Handling workplace disputes and complaints
• Maintaining a safe, healthy workplace for all
• Communicating with staff

Large companies generally have large human resource departments to handle these needs. For smaller companies, the owner or manager of the company will often handle human resources tasks. Here are some of the duties that handling human resources for your small business entails.

How to Recruit Talent

The benefit of working for a small company is that small companies tend to allow their employees to have a broader scope and take on more responsibilities than those employees at larger companies. Small companies also allow candidates greater business growth, flexibility, and more job diversity.

Because each employee needs to pull their own weight (and then some), it’s vital that you find and recruit top talent. When you’re hiring for your small business, it’s important to convey to each potential candidate what your company can offer them.

Share with each employee what they would gain if they worked for your company. For new workers, you could highlight the potential growth responsibilities and room for promotions. For higher-ups, it may make sense to consider an equity package to entice them to a small company.

One of the best ways to find top employment candidates for your small business is through networking. Networking can ensure that you have more background on potential candidates than a cold call would offer. Lectures, continuing education, and industry conferences are excellent ways to find and hire new talent.

You may also want to consider reaching out to local universities about listing jobs with them. New grads won’t have a ton of experience, but they’ll have new ideas and the flexibility to take on a job that will change quickly as the company grows.

What Human Resources Records to Keep

Human resources deals with complex laws and regulations. It can be hard to decipher what’s important. For small businesses (those with fewer than fifty employees), the rules are simpler than for larger businesses, but it still merits a visit with an attorney to make sure you’re in order. Make sure to ask about your state’s minimum wage and overtime laws, health care requirements, unemployment and workers’ compensation requirements, plus any unusual state employment laws.

Once you know what you need to do, the key to staying out of trouble is keeping great human resources records. At a minimum, you’ll want to keep the following files on each employee:

Employee File (General): Your employee general file will contain all documents pertaining to each employee. You’ll want to include all documents related to hiring, performance reviews, and payroll details. If the employee has had any disciplinary issues, you’ll also want to document these issues and include them in the file. Update the file periodically to keep it up to date on each employee.

Employee File (Medical): Your employee medical file will document any medical issues each employee has had. This file will contain any medical and/or disability documents on each employee. This medical information should be kept confidential and secure, so make sure to keep this information locked and password protected. This is important for cases related to discrimination—you need to make sure you’re providing reasonable accommodation for employees with disabilities or you may face a serious lawsuit.

I-9 File: This is the federal government form that identifies and verifies all employees. The 1-9 indicates that the employees are eligible to work in the U.S. In other words, this is proof that all of your employees are working above the table.

The Importance of the Employee Handbook

A comprehensive employee handbook is a must for any small business. Your employee handbook is the guide for protecting yourself from liability and letting your employees know how you expect your business to be run.

Your employee handbook should include the following topics:

• Employee Safety issues
• Workplace and computer security issues
• Anti-discrimination policies
• Non-disclosure rules
• Employee code of conduct
• Compensation and pay structure; including bonuses and overtime policies
• Employee performance review policies
• Leave policies, including medical leave, family leave, and vacation
• Other relevant information

Part of having an effective employee handbook is making sure each employee is privy to the information inside. In order to make sure your handbook will do what you need it to, each employee needs to receive a copy, read it, and sign it. That statement will go into their employee file to indicate that they are apprised of and agree to abide by company policy.

Learn more about employee handbooks in our free interactive course on Hiring and Employee Relations 

Summary: Great Team, Great Business

Hiring and retaining the best talent can make sure your company is successful. It’s also important to know the relevant human resource laws which may impact your small business. Check your local trade journals and keep in regular touch with your attorney to make sure you’re on top of the latest HR rules and regulations. And check in with your employees regularly to make sure you’re all on the same page and have what you need to do great work.

At Accion Opportunity Fund (AOF), we offer support, advice and coaching to small businesses looking to improve and expand. Discover AOF and learn about what we do.

Learn More About AOF

While being the boss is appealing, it’s not necessarily easy. Like many other aspects of business, becoming an effective boss is a learned skill. Here are a few tips to get you started:

Good Bosses Do:

1. Demonstrate Personal and Professional Integrity

As the saying goes, “Actions speak louder than words.” Allow your daily actions as leader to build the corporate culture of your business. That makes your job as a boss easier – people will see a great example of how they should act and will be more likely to follow it. People will also respect you for acting with integrity, which makes them more likely to take your lead.

2. Mind Their Manners

This may be a point that goes without saying, but good manners and proper etiquette are key when you’re in charge. Being a boss isn’t about yelling orders and striking fear into the hearts of your employees. It’s about creating a workplace where people want to do good work – and that means they need to be treated like people.

This doesn’t mean you need to take an etiquette class. It’s as simple as remembering to say thanks for a job well done or allow a little scheduling leeway for a personal emergency. Be polite to your employees and they’ll be polite to you.

3. Demonstrate Corporate Vision

Passion is contagious, so develop a vision for your company and share it with your employees. Connecting on a personal level with the work they do each day will allow them to feel like they are an integral part of the company. When you’re passionate and share your vision, your employees will strive to work harder to ensure the success of the future of the company, too.

4. Delegate Busy Work Tasks

Some people think that being the boss means that you need to do everything for the company. Having a staff you can count frees up vital time and energy to focus on boss-like things; like PR and rainmaking, growing the company, attending to clients, and continuing education.

Know when to delegate tasks so you can focus on the things which truly matter. That doesn’t mean that you should think that certain jobs are beneath you; it just means you need to be aware of your time management and spend your effort where it makes the most difference for your company.

That said, you’re running a small business and you may need to step in on the front lines from time to time. That’s actually a good thing – it keeps you in touch with your customers and with your employees’ experiences.

5. Be a Mentor

Part of being the boss means that you have valuable knowledge to share. Don’t look at the people who work for you as possible competitors or upstarts – look at them as valuable resources. When they grow professionally, they can do better work for the company. Find the folks that are eager to learn and help nurture that impulse. Your growing business is going to need other people that share your expertise.

Good Bosses Don’t:

1. Assume They Know it All

Effective leaders are always learning

, whether that’s from those around them, from continuing education courses, from their mentors, or from reading. If you’re not willing to learn, you’re cutting out huge opportunities to grow and improve your business. You’re also going to turn off potential partners and employees with a know-it-all attitude.

2. Flaunt Their Authority

Just because you are the company head doesn’t mean that your employees and staff are beneath you. In fact, good bosses know that their companies won’t run without the dedicated help of quality people.

Communicating when you’re the boss requires you to walk a fine line. You want to convey an air of competence and authority, but you never want to demean or belittle those who work for you. Pay attention to tone when you’re communicating; it can make a big difference to how your employees perceive you. Just remember that every job is important for the success of your company, no matter the size.

3. Get Caught Up In Bureaucracy

Some paperwork is necessary – employee handbooks, an employee complaint system, etc. But some folks get too caught up in the bureaucracy in an attempt to make sure everything is running smoothly. That can mean endless piles of forms, hours of meetings, and other mindless red tape that gets in the way of real work.

Having more forms and meetings doesn’t make your business more professional. Make sure you’re only using those things when necessary and don’t be afraid to let your employees take a little initiative.

4. Micromanage

It’s your business and you know it better than anyone. That can make it hard to let go of tasks and let employees take over – what if they do it wrong? But as your business grows, you won’t be able to do every single thing that needs doing and you’re going to have to delegate.

That means hiring employees you can trust and training them to do the job right. And then it means letting go of that task. You’ll still need to provide oversight (that’s what a boss does) but don’t hover over their shoulders or require them to check in so often that it interferes with their ability to work (and lets them know that you don’t trust them to do their jobs).

5. Forget to Note Hard Work and Reward Success

When your employees do good work, your company succeeds. Acknowledging and recognizing employees’ work milestones, promotions, and success in project completion can build morale for all. Take the time to reach out to your employees and let them know you appreciate what they bring to the company. Show them that you understand that your company’s success depends on them, not just on you.

Be The Boss

Learning how to be a boss isn’t something you in school. Much of learning how to run a company is “on the job” training. It may take time to figure out your own particular management style and how to best run your company. Just recognize that much of being a good boss is about treating others with respect, acknowledging their commitment, and practicing interpersonal skills. When in doubt, know that you can never go wrong treating others as you would like to be treated.

Your business doesn’t exist in a vacuum – you need your customers on one side and your vendors on the other. Both of those relationships are crucial for the success of your business.

When you’re running a small business, great vendors are worth their weight in gold. They can help make your business run more smoothly and work with you on timing, payment terms, and other aspects of your work together. A bad vendor relationship (or a bad vendor), on the other hand, can be a nightmare. These are a few easy tips for working with vendors and building awesome relationships with them.

 

1) Pick the Right Vendors to Work With

One of the most important things you can do to work well with your vendors is to pick the right vendors from the outset. Prospective vendors may look good on paper, but when push comes to shove, they may not deliver in real life.

Make the effort to check references and talk to others in your field to get the real scoop on what to expect from various vendors. Don’t be afraid to shop around – hit the pavement and go meet your vendors and see their premises in person. First, your prospective vendors will appreciate your dedication to making an informed decision. Second, you’ll learn a lot about your vendor by sitting down with them face to face and seeing how their operation runs in person.

In addition, you always need to verify licenses and insurance policies of each vendor for your own protection. It’s ok to ask them to verify that they have appropriate insurance and licenses. You can also check their references online to make sure they’re being honest. The Better Business Bureau is another resource to explore whether your vendor has had complaints or licensing issues. Any liens, lawsuits or credit issues may be a matter of public record.

 

2) Establish Relationships Based on Respect

From the outset, before you’ve even settled on a vendor, you should treat everyone involved with the utmost respect and professionalism. Set the tone for a strong working relationship from the outset. Once you’ve settled on a vendor, don’t let that slip. Make an effort to meet regularly in person; that’s a great way to show real commitment to your working relationship. Plus, it’s a much better way to build rapport than email or phone conversations.

More than anything, remember that your vendor is running a business like yours. They and all of their employees are people – they may make mistakes and they may sometimes need flexibility and understanding (just like you). It’s the old golden rule – treat them like you’d want to be treated!

 

3) Communicate Your Needs to Your Vendors Early On

One of the best ways to get what you need from your vendors is the most simple: Tell them. Be upfront about communicating your needs, goals, wants, and pain points so that your vendors can meet your expectations. If your deadlines are absolutely inflexible, for example, they need to know! And they may be able to work with you to expedite certain processes and make those deadlines easier to hit.

If it appears that there’s going to be a problem with one of your vendors, then don’t wait until the problem is insurmountable to address the issue. Even the best vendors can’t fix a problem they don’t know about, so be honest about pointing out the snafu and about ways you can work together to rectify it.

Talk to your vendors about systems that can make your work together easier. A shared calendar, for example, is a great way to make sure everyone is updated about the progress of various projects.

 

4) Honor Your Financial Commitments to Your Vendors

This is so obvious it should go without saying, but one of the quickest way to burn bridges with excellent vendors is by failing to pay for their services. Make it a goal to always pay on time and in full.

The nature of small business is that there are times when finances are lean. If a financial situation prevents you from paying in a timely manner, don’t stick your head in the sand and avoid the money issue. Communicate the financial problem you’re having early, honestly, and with integrity. Sometimes vendors can work out a payment plan to help you get on your feet.

Again, this is an area where a great relationship with your vendor can smooth the way to a solution and give you a little wiggle room.

 

Working With Vendors Is Crucial For Success

A productive small business owner and vendor relationship requires honesty, flexibility, and mutual respect. Knowing how to work well with your vendors will allow them to meet the needs of your business, while allowing you to build long-term relationships to help your business grow.

 

Your business is only as strong as the people that make up that business. How do you cultivate the best each day from your employees? Create an environment that allows them to thrive! A positive work environment can boost employee morale, which can lead to better results, higher profits, and an overall better corporate culture.

These are our pro-recommended tips for how to create a good working environment when you’re the boss. Many of these steps are low-cost and simple to implement in your own small business setting.

 

Why A Positive Work Environment Is Important

Happy, productive employees are the cornerstone to business success. Organizational psychology studies have established the connection between positive work environments and better productivity. In short, happier workers who feel appreciated and supported are better workers overall.

By making the effort to make simple changes which create a positive work environment, you’ll reap the rewards as your business benefits from better employees. Your employees will be more productive while at work, more loyal to your company. Meanwhile, you’ll have better retention rates, fewer sick days, and a more lucrative corporate bottom line.

 

5 Steps You Can Take to Create a Positive Work Environment

Creating a positive work environment isn’t rocket science. Many larger companies have modeled how to boost morale create a working environment where your employees are happy and motivated. Here are some concrete methods to adopt in your own small business to create a good work environment for all of your staff.

1. Talk To Your Employees

As a small business owner, you should let your employees know that they are your priority. Cultivate an open door environment to air grievances and address concerns. Face-to-face meetings with employees encourages feedback and two-way communication.

Regularly checking in with your employees in a safe space where they can talk openly about improving the work environment will make them feel heard. On the flip side, listening to your employees can help you improve your own business practices.

Make an effort to schedule regular face-to-face meetings. This will allow you to take the pulse of the company while allowing each employee valuable time for self-expression.

They’ll let you know what will make them happier – all you have to do is implement it!

2. Consider Flexible Work Arrangements

It used to be that employees were required to be at their desks during the standard “on the clock” hours of nine to five. Modern businesses encourage flexible working hours to allow employees the autonomy to control their own schedules.

Popular flexible work arrangements include part-time hours, a compressed 37.5 hour work week, or job-sharing between two employees. All of these options allow employees to set up their work hours in a way which best meet their work-life balance needs.

These flexible schedules allow employees’ time for their children, families, elder care, or other needs. Often flexible working arrangements allow working mothers with young children the option of returning to the workplace.

Employees are happier when they have some control over their working life – and they’ll be able to do their best work when they’re in the office and not distracted.

3. Remote Work

Allowing employees to work from home has been linked to higher rates of happiness, productivity, and retention rates. Modern technology allows most employees to work from home and still have similar resources that they would in a traditional office setting. The COVID-19 pandemic illuminated for everyone just how simple it could be, when push comes to shove, to work from home.

Permitting employees to work from home can be a boost to business owners, as well. By allowing employees remote access, you’re not limited geographically by who you hire. Allowing remote work expands the talent pool of hires exponentially. One important thing to remember is that you can help your employees create a positive work environment in their homes, too. This will keep them engaged and happy despite any geographic distance.

Even if your company isn’t in the position to allow all employees to work from home all the time, offering this benefit even a few days a week is worth consideration.

4. Liberal Vacation Time

With US workers working longer hours than ever, vacation time is considered a precious commodity. Vacation time is when employees get to recharge, spend time with their families, and rejuvenate.

A liberal vacation policy allows employees the necessary time to reset, so they can return to the office, refreshed and ready to bring their A game. Some firms are experimenting with unlimited vacation time. Employees are allowed to take as much time off as they want, as long as their work gets done.

5. Paid Parental Leave

Welcoming a new baby is one of the biggest life changes an employee may experience. Maternity leave is common at most large companies, but paid gender non-specific parental leave allows both new moms and dads to bond with their new arrival.

Paid family leave allows new parents to have a better work life balance. Many companies have also extended this leave policy to adoptive families. Too many families feel pressure to get right back to work after having a child, and that leads to a lot of workplace stress. They’re distracted by the thought of their new little one and worried about the costs of childcare – and that makes for a stressful work environment.

 

Don’t Worry, Be Happy

A positive work environment allows employees to shine! When you value and respect your employees, they’ll return the favor. Happier workers, better work – it’s that simple!

 

No matter what line of business you’re in, communication is critical to your success. Each and every day you communicate with staff, vendors, customers, clients, and other businesses. Every conversation you have falls under the category of “communication” and the better you are at communicating your needs and intentions (and understanding those of the people you’re working with), the more successful your business will be.

Better business communication skills mean better business. These are our top tips for brushing up on your skills.

 

1. Be Direct

These days more than ever, time is money. There’s no point into beating around the bush in your communications. The more concise and direct you can be when it comes to your communication, the better. This rule applies to both verbal conversations and written communications. In addition to being more efficient, direct communication seems more honest and forthright.

Keep in mind the words of acclaimed author Jack Kerouac, “One day I will find the right words, and they will be simple.” When in doubt, the “right words” are often the simplest ones.

 

2. Tell The Truth

On a related note, it can be hard to embrace honesty. Honest words can be painful. In a business setting, sometimes being honest can mean confronting others about what they’ve done wrong or admitting something you’ve done wrong. Sometimes it can mean uncomfortable conversations with your staff. No boss ever wants to fire an employee or admit a mistake, but sometimes it’s necessary – and that is a painful conversation for all.

Strive for honesty in your communications. Even if you’re delivering an unpleasant message, others will appreciate your forthrightness. If you have a tough message to deliver, be direct, stick to the point, and don’t sugar-coat. Trying to make your words sound better won’t dull the sting of certain messages. And taking ownership of your own actions will show others that you’re taking things seriously and they’ll appreciate your honesty.

 

3. Be An Active Listener

Just because you’re being quiet when someone is speaking to you doesn’t mean that you’re fully listening. Engaged, active listening means that you’re genuinely invested in what the other person is saying. People can tell when you’re not really paying attention.

Take the time to actively listen. What does this mean? Briefly: Make eye contact. Ask questions if you’re unclear. Use paraphrasing techniques to repeat back what you think the speaker is telling you. These simple techniques convey to the speaker that you’re truly listening to them, and that you care about that they are saying. They also help ensure that you’re actually hearing the message they’re trying to deliver.

 

4. Don’t Interrupt

There’s nothing more frustrating than trying to communicate and having someone interrupt you mid-sentence. It shows disrespect for and disinterest in the speaker – not a good feeling.

Conversation is a give and take, so make the effort to allow them to finish before your respond. They’ll speaker will feel validated that you’re trying to communicate with them, rather than bulldoze them with your own agenda.

This is similar to learning active listening – pay attention to them rather than waiting for your turn to speak. Sometimes it can be easier to take note as you listen so that you don’t forget what you wanted to say. Once they’ve had their say, you can take the opportunity to respond.

 

5. Keep Your Cool

Whatever you’re talking about, avoid being accusatory or angry. Unless you’re warning someone about an imminent safety issue (like telling them to get out of the way of a falling object), there is no reason to yell in the workplace. Nothing sours a professional relationship faster than someone feeling as though they can’t do anything right. Overt blaming, finger-pointing, and verbal shaming have no place in professional communications.

Rather than using phrases like “You always ” or “You never ” try to frame your concerns as, “It seems as though this is an issue for you” or “I’ve noticed that you’re often late on Wednesdays. Is there a problem I should know about?” Show that you’re concerned for them, not angry at them. By giving your staff and colleagues a chance to have a dialogue with you, you open the door for communication and problem-solving rather than the blame game. The same goes for your vendors and clients – be direct but not aggressive.

Communicating proactively and honestly is a great way to head problems off at the pass and to build a better rapport with the people you work with. Your staff and colleagues will respect you if you show that you respect them. Let them know that you’re always there to listen and work with them, not condemn them – everyone has bad days and personal crises and you don’t want people to feel like they have to suffer in silence.

 

6. Mind Your Body Language

Pay attention to what your body is saying. Are your words consistent with your non-verbal communication? Words are just one way we communicate. Our stance, posture, movements, even our tone and infection, also send a clear message.

Negative body language can negate positive words and a positive message. For example, subtle eye rolls or lack of eye contact convey impatience. Arms crossed against your chest can mean you’re hostile or not open to what the other person is saying. Rubbing your face with your hands can mean you’re not telling the truth or that you’re thinking about other issues.

Instead of closed, distracted body language, try “mirroring.” That means paying attention to the other person’s body language and subtly doing similar things. That makes the other person feel like you’re more in sync, which makes them more likely to feel comfortable. In fact, it actually helps you understand them better, too.

Psychologists have conducted years of study on the impact of body language in business and social settings. Knowing how you’re being perceived by others can make you aware of ways to better all communication – both verbal and non-verbal. For more on how to cultivate positive non-verbal body language, check out this resource.

 

7. Don’t Multitask

With many digital toys and tools at our fingertips, it’s easy to try to do 12 things at once (literally). The downside of all this instant communication and connection means that it can be challenging to just sit down and listen. We tend to feel like we’re constantly beholden to our phones and can’t miss a single email or text no matter what. But when you’re doing multiple things at once, your thoughts are wandering and you can’t fully focus on the person speaking to you.

If you’re using your phone or laptop while holding a conversation, you’re showing the person you’re talking to that they are less important to you than whatever is on your device. Plus you really can’t get their full message if you’re paying attention to a bunch of things at once – we’re not nearly as good at multitasking as we think we are. Make the effort to fully focus on the person who’s speaking and what they are saying to you. They will appreciate the focus and the attention and you’ll have better communication both ways.

 

8. Keep It Professional

Text messaging, email, chat, and other instantaneous forms of communication can condition us to want (and expect) instant responses. When you’re communicating using these modes, it’s easy to slip into an ultra-casual tone. Most of us started using those technologies in our social lives and that style can bleed over into our professional communications. But remember that you’re a professional and your electronic communications should reflect that.

Avoid slang, abbreviations, emojis, gifs, and anything else you wouldn’t send in a professional form. And just because someone sends a text, don’t feel as if you need to respond instantaneously. If the communication warrants some thought, it’s perfectly acceptable to reply later with an email or a phone call. That said, you should strive to respond in a timely fashion – checking your email once a week is not going to be good enough.

Text can be convenient, but in business cases, should only be used for the most superficial communication – perhaps letting the other person know you’ve arrived at a meeting place. Similarly, chat may be useful for quick conversations within your office but aren’t appropriate for communicating with a client. If you have something important or lengthy to discuss, use email or a phone call. Even though the functions of text, chat, and email are very similar, the connotations are different. Email is still the most formal and professional way to go as far as written messages go and a phone call is never amiss.

 

The Bottom Line

Learning how to communicate better is a skill. As with any skill, you’ll need to practice to improve. It’s well worth it – strong business communication skills can make you a better boss, business owner, and colleague. Plus those skills are applicable in your personal life, too. They’ll make it easier to connect with your friends and family (even those pesky teenagers!). Basically, brushing up on your business communication skills is a no-brainer.

 

When you’re running a small business with a small team, every person you hire matters. Every player needs to function as part of the team. Big companies with hundreds of employees have entire human resources departments dedicated to finding the right people. When you’re leading a small team, on the other hand, you’re the whole human resources department. You can’t afford to have dead weight, personality conflicts, or attitude problems – you have a business to run!

Hiring and managing a small group of employees isn’t always easy. Here’s what you need to know about human resources planning.

 

Hiring A New Employee

Your business is growing and you can’t do everything yourself. That means it’s time to take on a new employee (or even a couple). That’s stressful – you’ve built this business and it’s hard to trust someone else to help you take care of it. How can you make sure to make the right hire?

1. Don’t rush. Take the time to put out job postings on a variety of platforms and interview a number of candidates. Human resources planning takes time and you don’t want to be stuck making a snap hiring decision.
2. Know what you’re looking for, but keep an open mind. Does this employee need to have a specific skill set? For example, do you need someone who knows how to cook or how to keep the books? Make sure your job postings are clear and all of your candidates meet those basic criteria. At the same time, keep an open mind about what each candidate can bring to your team.
3. Network. It’s good for your business in general as you make connections with other people in the community, but it’s also a good way to find candidates to work for you. If you stay connected to the business community, you may have an ideal candidate in mind before the job even opens up. With a roster of potential candidates, you also have the flexibility to create positions for those you’d like to have on your team.
4. Interview thoroughly. You’ll want to make sure the candidate can do the job – you may even want a demonstration of their skills – but that’s only part of the interview process. You’re also looking for a good “fit.” A new business can be a tough place to work – you’ll want a candidate with a positive outlook and a can-do attitude. Does the candidate share the values and vision of your business? Try to listen more than you talk – really pay attention to learning about who this person is and what they’re all about. Ask them what they can bring to the table.
5. Check references. Call the candidate’s previous employers and ask about their performance, their attitude, and anything else you might need to know before making a hiring decision. You’ll want to make sure that the candidate was being honest in the interview.
6. Check-in with your other employees. On a small team, everyone has to work closely. Invite any existing employees to meet the potential new hire to make sure everyone will be able to get along. The decision is ultimately yours, but you don’t want to introduce conflict into your workplace if you can avoid it. Your employees also have different points of view and may be able to give you useful insights about the candidate.
7. Think long-term. Is this an employee to fill a temporary gap or is this someone you want to work with for the long haul? Consider the candidate’s growth potential – will they be able to pick up new skills and take on new responsibilities as your business grows? This isn’t just hiring, it’s human resources planning – you’re investing in an employee as an asset to your business.
8. Make your job offer clear and fair. When you’ve decided who you want to hire, make sure that the job offer explains the terms and expectations of the position. Make sure that your salary and benefit offers match the market – you don’t want to lose a strong candidate because your competitors are offering better pay.

How To Deal With Employee Problems

Even with the best human resources planning and the best hiring practices, sometimes an employee will cause problems. In a big company, that may result in immediate firing. In a small business where you all work closely together, that’s not usually the best option. Instead, you can take steps to defuse the situation and help bring the employee back into line.

First, take the time to speak to that employee privately to talk about what’s going on. Rather than starting with accusations, ask them calmly and openly about what’s going on. At this point, you need to show that you care about the employee, not that you’re angry. It’s possible that this person is having serious issues with their personal life or a health issue, for example, and talking about it openly can give you the opportunity to discuss how it affects their life and work. Then you can start talking about potential solutions.

If the employee doesn’t want to talk about that, you may need to address the issue more directly. When you do, be sure to focus on specific behaviors and actions rather than attitudes. It’s called the Camera Check technique – you only address things that would show up on camera. For example, you might say to the employee, “I see you’ve been late and had an argument.” This is much easier to hear than “you have a poor attitude.” This method takes the negative spin out of your feedback and turns into behavior that can be corrected, rather than an attack on their character. Then, explain what you need in concrete terms. For example, you might say, “I need you to finish your projects by the deadline each Friday.” That’s something your employee can strive to make happen and it’s more likely to get a positive response than, “I need you to work harder and have a better attitude.”

If the problems continue despite your best efforts, you may suggest a probationary period. That puts the employee on notice that their behavior needs to change or they won’t be able to continue in their position. Hopefully, that’s enough motivation to improve.

Unfortunately, sometimes an employee just isn’t a good fit for your company. That puts a very difficult decision into your hands. Once you’ve made every attempt to address the employee’s needs and behaviors, however, you may need to fire someone. If that’s the case, plan out what you’re going to say ahead of time. Decide whether you’ll be offering severance pay and how you’ll be tying up any loose ends. Be calm and respectful, but assertive. You don’t need to offer detailed explanations for your decision – just keep your cool.

 

Keeping The Peace

Of course, the best option is to avoid employee problems before they happen. That means keeping close contact with your employees and paying attention to their needs as individuals. Make time to talk to each of your employees individually. Ask how they’re doing and how their jobs are going. Ask what you can do to help them. Make sure they have the tools they need to do a good job for you. That way, your employees feel like they can trust you and they’ll want to work hard for you.

You may consider having weekly meetings to give everyone a chance to bring up important issues and to praise people for their hard work. When you have a big win – a large contract, a successful product launch, a major milestone – be sure to celebrate with your employees. Let them know how important they are to you and to your business. When you have a big loss, bring everyone together to talk about constructive ways to overcome the challenge – don’t let it turn into the blame game.

You and your employees are in this together, so make sure that they feel that way, too. Human resources management isn’t just about hiring and firing – it’s about the people that come to work for you every day.

 

Protect Your Business

As a small business owner, your success depends in part on your employees. Of course, managing people is tough – especially when it’s a small group that has to work closely together. One way to maintain harmony is to be thoughtful about whom you hire. Another is to create an employee manual or handbook. In it, you can describe the roles and privileges of your employees. That way there are no surprises about your expectations and each employee knows that she is subject to the same expectations as every other employee.

Your employee manual may also include procedures for dealing with the problems that inevitably arise among groups of people. For example, you can list ways for your employees to bring up their concerns about their jobs or other employees with you in a structured and safe way. You can also explain how you’ll deal with any problems that arise so that the procedure is transparent and fair.

If you do have to address a problem with an employee, it’s crucial that you keep complete documentation of every incident and every discussion you have with the employee. Unfortunately, disgruntled ex-employees may attempt to sue you for firing them and you’ll need that documentation to prove that the termination wasn’t discriminatory or inappropriate.

 

The Bottom Line

Hiring, firing, and general human resources management is all part of doing business. As a small business owner, it’s up to you to hire the best candidates and keep your team working together smoothly.