You've started your own business, found the right niche for your product or service and gotten a tremendous response. You've had to hire more people, and before you know it, you actually have a company.  You spend most of your time focusing on marketing and finding new business, as well as meeting your customer's needs.

 

What else should you be thinking about?  You may think that with only six, fourteen or twenty employees, you don't need to be concerned about structure or policies and procedures.  But actually, it is advantageous to think through how you want certain aspects of your company managed, even if you are not planning on continued growth.  Some strategic planning in these areas will enhance your ability to make decisions without trauma, and avoid the inclination to "shoot from the hip."   If continued growth is anticipated, putting structures in place while you are still small will increase your effectiveness, and eliminate the strain of transitioning to a larger format.  It is especially important to define structures to avoid discrimination.

 

Here are some of the areas you might want to think about.

 

Benefits administration: What sort of benefits do you wish to offer?  Who is eligible for them, and who pays for them?  Do you pay all or a portion; same amount for single and married?  Will you combine vacation and sick time into Paid Time Off? How will PTO be defined?  Will it accrue or be awarded on a calendar basis?  Will it be dumped or can it be carried over, and if so, how much, and will it be tracked by calendar or anniversary year?

 

Compensation structure - internal and external equity: How do your wages compare with your competition? Do employees of similar experience and tenure have equal wages?  How do you determine increases?   How often, what percentage and with what criteria?

 

Recruitment, recognition, retention:  How do you attract and retain the best possible staff most cost effectively?

 

Policies and procedure handbooks:  Do you have policies that define what you expect?  How do you address harassment? Hiring?  How do you effectively communicate performance expectations, and address when they are not being met in order to maximize the potential of success for your staff?  How do you address disciplinary issues in a way that empowers your employees?  Do you have ways to resolve employee relation issues efficiently?

 

Compliance issues: How do you keep current with prevailing legal updates?  Are you required to comply with the Fair Labor Standards Act, the Department of Labor, Family Medical Leave Act, American with Disabilities Act?  If not, do you want to adopt a modified version of any of the above?

 

Not all of the above categories will apply to every business, but the question is, do you know which apply to yours?  The more professionally you run your business, the more professional and efficient you appear to your clients and customers, as well as eliminating the worry of these day to day types of decisions so that you can focus on your core business.  Feel free to contact us with any questions regarding these issues.