What’s the #1 reason small and mid-size businesses falter?  Some analysts say businesses often run afoul because their leaders try too hard to be experts at too many things.  Like a ship’s captain supervising the mess hall when he should be at the helm; spreading leadership too thin across departments can cause a business to lose sight of its larger goals.  And paying inconsistent, cursory attention to Human Resources – the department responsible for keeping staff productive and the company legally compliant – can be disastrous.  Here are five ways HR support can keep your company safely on course.

1.  Keeping a Close Watch on the Port of Entry: Hiring 
A company’s very survival depends on its ability to attract and retain a talented crew. Yet, according to the US Department of Commerce, 30% of business failures result from poor hiring decisions.  And, a recent Harvard University study found that 80% of turnover stems from mistakes made in the employee selection and hiring process.  In fact, industry studies show that a bad hiring decision can cost a company between 30-300% of that position’s annual salary.  This means that companies must get hiring right the first time.  Yet, too often small to mid-size companies lack the time and resources to master the science – and art – of hiring right.  Telamon’s new HR Services Division offers Talent Acquisition Services  to help you staff smart.  We can analyze your company’s staffing needs; use creative recruiting efforts; prepare candidates; read ‘behind the words’ on resumes to find true accomplishments; structure and conduct interviews; do meaningful reference checks; and once on board, help you with employee on-boarding. 

2.  Moving Ahead as a Crew May Mean Letting Some Go 
Just as hiring the right people can help propel a business forward, hanging on to non-performers can jeopardize other employees’ success and the business overall.  An organization must be willing to transition out employees who are not performing up to expectations.  Although firing an employee is one of the hardest things a manager must do, most managers have had little support and training on how to do it.  An experienced HR professional can offer advice on federal and state laws as well as advanced planning for parting ways with those not pulling their weight. Termination considerations include: documenting the employee’s understanding of his or her situation; developing a Performance Improvement Plan (PIP) with goals and ways to chart progress; adopting a direct style of communication; and, as a last resort, holding a termination meeting that includes exit information.  If all the right steps are followed, firing should never come as a surprise.  Our HR experts are available to support you through the process. 

3.  Steering You Clear of Choppy Legal Waters 
Like jagged rocks lurking beneath the sea, unanticipated legal fees and damages can not only damage your ship – but your quality of life as well.  Yet HR staff well-trained in compliance, employee policies and government regulation can work as radar – anticipating and steering your company clear of legal hazards.  Approximately 45,000 civil cases filed annually in the U.S. involve businesses; and the average civil case can cost $50,000 to $100,000 to litigate through trial – not including the time cost and lost production taken away during the ordeal.  The impact of employee-related litigation on a business can result in substantial financial and emotional hardship.  Yet many of these cases fall under areas that a watchful HR team can often mitigate, such as civil rights, labor issues and employee complaints. 

4.  Staying on Top of the Rules, Regs and Mountains of Paperwork
Nearly 50% of independent business owners report government regulation is a “very or somewhat serious problem” for them. What do business owners say are the top 3 challenges of staying within the law?  
1) “Keeping up with the paperwork”
2) “Understanding what my business must do to comply”
3) “Being able to afford to comply”  
The compliance challenge is exacerbated by other factors, including the sheer volume of federal regulations (The Code of Federal Regulations topped 135,000 pages at last count!);  the challenge of sorting out federal, state and local regulations;  and the difficulty unearthing all the regulations that affect your business.  Knowledgeable HR advisors can play a vital role in helping your company comply with government regulations that can become a tremendous drain on resources for small to mid-size businesses.  To support your efforts to stay in compliance and on top of the piles of paper, Telamon offers both off-site and on-site HR Support options, including project-based services. 

5.  Running a Tight Ship Starts with an HR Audit 
With the federal government alone continually issuing new regulation changes, it can be difficult to stay on top of the rules.  A company’s best efforts to stay in compliance will be lost in the wind without a process in place to make sure procedures and policies are current.  The best way to do this is by conducting a periodic HR Audit. Benefits include identifying policies and procedures that aren’t being followed and why; unearthing unwritten practices and finding out if there are any legal risks with those practices; determining whether record keeping practices are being followed; and identifying whether improving training or communication, such as Employee Handbooks, would be helpful.  Our experienced HR Professionals are skilled at helping organizations evaluate their HR situation and make recommendations for immediate changes, and suggest changes to consider implementing at a later date.

To find out more about Telamon’s Human Resources Services, contact Lauren Brenner  today.