HIRING YOUR FIRST EMPLOYEE Staffing Full & Part Time At some point in the development of your business, you will probably find it beneficial to hire your own employees. This is another critical legal milestone for the company, bringing with it many additional state and federal laws and regulations. It is also a time for strategic decision making concerning whether your needs are best met by part-time employees, full-time employees, or some combination of the two. Part-Time Employees The Internal Revenue Code defines part-time employees as those who work 1,000 hours or less in any 12-month period. The Advantages of Part-Time Employees Part-time employees can be an excellent staffing option for small or young businesses, due to the potential for flexibility and the relatively low cost. Such workers necessarily work fewer hours, so will cost less in wages. You may vary the number of hours an employee works based on the amount of work available. In addition, part-time employees typically do not qualify for company-sponsored benefits. The Disadvantages of Part-Time Employees Part-time employees often hold more than one job, meaning possible competition for time and loyalty. In addition, such employees often leave if offered full-time employment by one of their other part-time employers, possibly creating a turnover problem. Keep in mind too, that part-time employees count for purposes of bringing an employer within the scope of state and federal employment laws. Full-Time Employees Full-time employees are generally considered to be those scheduled to work 40 hours per week. However, employers have discretion in setting such hours. The Advantages of Full-Time Employees Full-time employees are the most likely to develop company loyalty, and to feel a sense of ownership in the business. This can result in a committed, hardworking workforce, willing to go through any tough times the business may encounter. Full-timers also tend to hold only one job, giving you more control over their time and efforts. For many employers, full-time employees provide a sense of security that someone could manage things in their absence. The Disadvantages of Full-Time Employees For some employers, the advantages of full-time employees are outweighed by the burdens involved in hiring and maintaining such a staff. If you choose to hire full-time employees, you will face the burden of payroll taxes. Depending on the number of employees on your payroll, you will be responsible for keeping on top of myriad complex and ever-changing state and federal laws and regulations. In addition, in order to attract and maintain strong employees, you may be required to offer such benefits as health insurance and paid vacation. How Do I Create HR Policies From Scratch? Human Resources mentor Robert Hoffman responds to the following question from an inc.com user: I was hired as the controller of a small company that now has 25 employees. I was also given the role of HR manager. There is currently nothing in place in the way of an employee manual stating policies, vacation days, etc. Where can I go to receive software, and what publications and/or books are there that will help me with other HR-related issues? Robert Hoffman's response: The dilemma of not having time to write or research policies is a concern for most small and start-up businesses. There are many resources on the Internet for the information you seek. The Society for Human Resource Management is a good place to start. It offers a list of links at its Web site that can help you locate information on everything from benefits to safety. We also offer a comprehensive listing of links to human resource reference material on our company's HR Advice.com Web site. However, I do not recommend off-the-shelf policies and manuals. In my opinion, it is critical that your company's policies be customized to reflect your industry and geographic location. Employment laws vary by state of operation, and certain industries -- such as transportation and health care -- have special considerations. But perhaps the most critical factor in policy development is your company's culture. Many start-ups advocate a freewheeling, laid-back approach that is conducive to creativity and innovation. Conversely, businesses with conglomerate aspirations may feel that structure and process are necessary evils for long-term success. One policy does not fit all! I urge you to factor in your company's unique start-up status when considering any new policies. Some entrepreneurs may wonder how they can issue new policies without jeopardizing the existing culture of the organization. I believe it is possible if you keep a few things in mind. Seek ways to minimize the negative effects. One technique is to issue a set of policies at once. The bundling approach avoids sensationalizing specific issues while allowing the company to get the message across. Give appropriate reasons for implementation. For example, if your employees own stock in the company, they will likely understand and appreciate your setting up certain standards and protections. Pre-IPO start-ups can explain to employees that they must be especially sensitive to the negative publicity and resulting impact in the investment community that could result from a policy oversight. Communicate, communicate, communicate. In start-ups, as in many other organizations, how you send the message is as important as the message itself. Keep in mind that a policy is just another form of helping your employees understand your perspective. Regardless of your corporate culture, certain policies should be established within all companies so as to limit liability. I recommend that these policies include: Equal employment Antidiscrimination and harassment Employment at will You should make it clear to all employees that ethical behavior, equal opportunity, and respect for other employees are key to the employment relationship. Similarly, you should state that either party can end employment at any time and that no policy constitutes a contractual obligation to employees on the part of the company. Lastly, it should be clear that the company reserves the right to change any policy at any time. Matching New Employee's Perspective With Your Culture A company's culture is an intricate part of its success. Each employee has a specific niche that they fill to contribute to the company's success. When new employees are brought in, there is a period of adjustment while they find their role within the company. Most employees who fail to work out fail because they cannot adapt to their new role. Orientation key Peter Cairo, executive coach and partner of CDR International, states that many companies fail to give adequate support for new employees. "They may offer an orientation period that's focused on trivialities like where to find the key to the Men's or Ladies' room. The issues that really matter are often ignored… but the employer who really wants his or her new hire to succeed will address them directly and immediately." What is really important, according to David Dotlich from CDR International, is how the employee understands the culture of the company. By looking at characteristics in employees that fit well into the company culture you can recruit workers that will adapt well to the environment. Things that matter include, do they work fast, do they work reliably, do they depend on others for support,and even how their sense of humor fits within the office. Strong foundation Helping a recruit figure out the culture of the company can be influential in their success. The process should start as early as possible, before they even come to their first day of work. Some helpful details about the company dropped during an interview can help an employee on their first full day in the office. The earlier a recruit is told of aspects of the office environment the earlier he will feel comfortable and begin to fill his niche. The following are tips to keep in mind while helping a new employee make his transition. Clarify expectations up front The sooner an employee knows exactly what he has been hired to do; the more comfortable he will feel to ask questions. Don't rely on a written description. Go over your expectations point by point to make sure the new employee understands and is comfortable with them. Ask about company culture See how much they understood about the culture of their previous job. Test if they can explain how they fit into their last position. The more the recruit understands about the informal rules of the workplace, the easier time they will have adjusting. If an employee has little understanding of their environment it might indicate that they are unwilling to learn how things work. Two key factors for success are learning quickly and wanting to learn. Give them the big picture Discuss the company's long-term goals and strategy. Cover future projections or large projects in progress. Tell them how fast people are usually promoted up through the company. This helps the recruit to gain a sense of the company's culture and how individuals fit into the company's plans. Outline helpful details around the office Tell them everything they need to know but might not ask. These things might range from details of a supply ordering process to company policy for casual Friday. It's the little things people often forget to mention to a new employee that can affect how they fit in around the office. It also gives them clues to the culture of the department they will be working in, which will help them to adapt. Help them network quickly Even during the interview process it is a good idea to introduce them to people around the company. Identify key personnel to whom they may be reporting, or next to whom they might be working. Let them get a feel for how people interact and offer suggestions for dealing with "difficult" personalities. Don't assume qualifications will equal success Just because they did a good job in their last position and seem to have all the qualities you are looking for does not guarantee they will fit in perfectly. The culture of their previous work environment may have meshed well with their strong communication skills, but your company will require a stronger emphasis on planning or organizing, areas your new employee may be weak in. What do they see as their strongest and weakest traits? Compare that with what is required of them. Establish a professional relationship with the new recruit Don't sit them down at a desk and forget about them. Try to "coach" them along during the transition period. You have spent time and money recruiting them. Make the recruits feel comfortable as soon as possible while they settle in. The recruit might need you to clarify things, but may be unwilling to ask if they aren't comfortable yet. Derby Management 399 Boylston Street, Boston, MA 02116 Tel: 617-292-7420