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Smart HR for Small Businesses

Presented by: Diane F. McNally, Ph.D. August 7, 2013

People Strategy

Talent Acquisition HR Compliance

Training and Development

Employee Engagement

HR Infrastructure

Compensation and Benefits

Communications Performance Coaching

HR as Risk Management Managing the Risk by:  Creating infrastructure to support the people aspect of your business. 

Utilize repeatable, sustainable and measurable processes.

 Communicating expectations. 

Be transparent, consistent and thorough.

 Complying with laws and regulations. 

Minimize exposure to violations and financial or reputational risk. 3

Infrastructure Processes (just a few!!) 

Drive consistency and efficiency.

Minimize chaos and confusion.

Scale for growth and increased complexity.

Documentation 

Provides history and information.

Supports decision making.

Policies 

Articulate expectations and requirements.

Provide information.

Set the tone for company culture.


Processes and Documentation Processes and documentation 


Job descriptions



Pre-employment screening and references

Offer letter

Employment Files


Employee file

Medical file

Compensation Structure

Salary/Wage ranges

Pay adjustments


First day orientation

On-boarding plan

Performance Reviews

Objectives and measures

Feedback and Coaching


HR Policies – Some Examples Employment Policies 


Equal Opportunity Employment

Workplace Policies 

Open Door Policy

Employee Conduct/Ethics

Dress Code

Electronic Communications/Social Media

Harassment and Discrimination

Drug-Free Workplace

Safety & Health

Job-related Policies 

Performance review

Disciplinary action


Pay Policies 



Expense reporting

Benefits 

Health Insurance

Time off

Family Leave


Compliance  Recordkeeping 

New hire records (application, resume, I-9, offer letter)

Performance and disciplinary documents

Benefit elections

Attendance records

Time off documentation (vacation, sick time, leaves of absence)

Compensation and reward information

Tax and payroll forms

Termination and exit documents

 Retain records in separate, secure and confidential files.

 Employment Posters 

Offer laminated posters for sale for about $20.00.

Receive notice of updates.

Free posters

Provides guidance on required federal and state, depending on your industry.

 Show a “good faith effort” to comply.


Now what?  Review the HR Checklist.  Prioritize projects and create a project plan.

 Don’t reinvent the wheel and keep it simple. 

Use existing resources, such as forms and policies.

Leverage technology.

 Outsource what you can, for example: 

HR Process design and documentation

Employee Policy Guide

Compensation structure

HR Compliance Review


What’s Trending? Independent Contractors o

Employee or truly “independent”?


Must meet very specific criteria to be considered a “contractor”.


IRS and Dept. of Labor are stepping up scrutiny.

Non-compete/Trade Secrets Agreements o

Protect intellectual property, customer portfolio and proprietary information.


Increased enforcement and litigation.

Social Media o

New recruiting strategies.


Acceptable use in workplace.


Employee monitoring. 9

Smart HR for Small Businesses (Diane McNally)