drives end-customer loyalty. Noting that business owners cannot know everything that is happening at every point in time in their company, Bolnick emphasizes, “If you have disgruntled people or people who don’t understand the message or the process, the probability of something happening with the end-customer that is negative is increased.” However, if everyone is marching to the same drum beat — and they understand the importance of that — the probability of having a positive customer response is increased. A challenge in identifying and attracting the right talent may be in how to afford them, says Tim Wales, who has started multiple businesses over the past 10-plus years. “Then you shift your focus from attracting people to raising capital — and get stuck in a rut.” He is a strong proponent for businesses finding advisors, not just financial
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“From an HR perspective, one of the things we think is most important is selecting people who really represent your brand,” says Phyllis Senseman, vice president of Agency Management and Marketing with CopperPoint Mutual Insurance Company. She emphasizes the value of investing in the pre-hire process because of the significant expense attached to that the termination process and retraining. And, so that the company has solid footing if an employee is terminated, she says, “Be sure you have strong HR policy guidelines regarding what’s permissible in the workplace.” Companies may also consider having a probationary period for new hires, for possibly a 90-day or six-month period. “Then it’s ‘no harm, no foul’ if you don’t keep that employee,” she says. Such an arrangement needs to be agreed to at the outset. An aspect of HR that businesses may overlook is safety. Senseman suggests a business owner develop a network, based on similar company size or industry, so they can learn from one another. “Let someone else come in and look around your business for what they might see, and you can do the same courtesy for them.” She
investors, and he’s found that many successful businesspeople truly care about giving back. “If you’re passionate about what you’re doing, and they see something in you, they will give you time.” His business — Visibility Technologies Solutions, which launched last year and involves multiple executive leaders who are giving time back to the community, and his current new project, WebProctor, an education cloud service solution, which taps into other expertise among Eliances members — reflect this philosophy.
Wales also emphasizes the importance of a business owner listening to his or her employees. For instance, a business owner may keep old technology in place because of the comfort level in using something that’s familiar. Employees, however, could be frustrated with the systems in place because they don’t get the job done. “It’s OK to have open communication channels,” Wales says, warning against complacency and ignoring the people who contributed to the business’s success.
“One of the biggest things entrepreneurs and small-business owners do wrong is to focus on things they’re comfortable with, and not do other things because they’re not comfortable with them or literally don’t know about them.” —Mitchell Bolnick notes that a fresh set of eyes will often bring a different perspective. Other resources she suggests are local chambers of commerce or business organizations, which may offer HR advice and policy training. And the U.S. Small Business Administration also has useful guides for small companies to navigate HR matters, shares Ballard & Spahr’s Wilhoit, calling it critical that businesses spend time thinking about HR matters. “Those are the areas where people make the most mistakes.” In the employment realm, government agencies have stepped up their activities, and LeighAnn Ciccarelli, general council for Diversified Human Resources, notes this has led to employees being much more aware of their rights. “They’re not afraid to go to these agencies if they feel they’re not being treated fairly.” In the areas of graft and discrimination, the Equal Employment Opportunity Commission has substantially increased its enforcement activity. Says Ciccarelli, “Employers need to be aware of what’s going on in their work force, and not turn a blind eye.” It’s important that a business not just have a policy that covers these issues but the employees are educated and the policy is consistently enforced.
“Be very aware of misclassification issues,” Ciccarelli advises, warning that the Department of Labor has been charged with a responsibility of going after these violations. It’s not just a matter of paying non-exempt employees minimum wage and overtime, but whether employees are properly classified in the first place. Businesses should be aware that a salary does not automatically make a position “exempt”; there are other factors, which include the duties of that job. The misclassification issue also lies at the heart of IRS activity focused on 1099s versus W2s. “So be sure to ask an expert, and not just call someone an independent contractor,” Ciccarelli says. She cautions against taking shortcuts. A discrimination lawsuit by the EEOC or private party can go to six figures and up. With DOL misclassification issues, liquidated damages and penalties are mandatory. And if the IRS undoes a misclassification, the employer is responsible for all the back taxes — not just the employer’s but the employee penalties, too. Says Ciccarelli, “These are tricky areas and can get you into trouble if you just think you know what you’re doing versus really asking the questions.”
“From an HR perspective, one of the things we think is most important is selecting people who really represent your brand.” —Phyllis Senseman
INBUSINESSMAG.COM
JULY 2015
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