What is the Plan?
Very often one goes into business to make a living (hopefully a profit), to explore your passion, independence or personal growth. As we embark on our business journey we focus on our profits, customer service, and the quality of our product but we often forget a critical component of our business…staff. As our business grows we employ staff and they can either make or break the business.
The management or staff is often the most overlooked element in business. This is very dangerous to overlook as employee payroll costs are one of the highest costs in a business. So, what is your plan?
Each business must have an HR or people management strategy, the next question is how I develop such a strategy. The key is to start with your business goals and assess how the staff impact these goals.
Once you have defined these goals below are a few areas to look at in terms of your strategy, remember your staff is representing your brand and image in the marketplace.
1. Structure – every business needs structure. Expectations are to be created – but how? Performance expectations are created by having clear job descriptions. Having job descriptions in place which can be transferred to key performance indicators which are measured and managed. Policies, procedures and standard operating procedures are key to creating expectations and defining “how things are done”. In many businesses managers expect that employees should know how to do XYZ – never assume. Assuming leads to much time being wasted revisiting the same issues when there is no clear direction or standard. Without definitive workplace policies and rules staff will find every gap to play the system to their advantage. Without structure and clear expectations, one cannot effectively manage probation, performance and deviant behaviour these elements are key to procedural fairness when implementing the necessary remedies prescribed in labour legislation.
2. Skills – when measuring performance it will become apparent if you have the necessary skills to achieve your business outputs. It is very important to address skills gaps and draft employee development plans. These plans include training, a career plan and the assessment and implementation of back-ups of key personnel. Don’t believe so and so will always be there, however reliable, and loyal a person may be there are factors such as health, relocation of a spouse or an unforeseen accident that could occur. Always have a backup plan your business cannot come to a grinding halt because a certain key member of staff is off on extended absence or has left the business. Have succession plans in place for key personnel and staff who are going to retire, if you don’t have the skill in the business and can’t train and develop for the position recruit early, it’s hard to find the right person at the drop of a hat. Staff development plans and accessibility to training are key motivators of staff.
3. Recruitment – Conduct a thorough recruitment procedure and be careful who you let in the door. If you have failed at the recruitment stage it is harder to get the bad apple out later, the labour legislation has strict requirements and processes in place to deal with staff – rather don’t let the bad apple through the door. Don’t ever take a candidate at face value, an interview is marketing, the candidate will only give you what they think you want to hear. Do thorough background checks such as reference checks (try at least three previous employers if you can for a balanced overview), and credit checks for financial positions another good tool to use is psychometric tests. If there is a gap in a CV or something that does not make logical sense interrogate the gap phone the previous employer - dismissals are always masked as something else in a CV. You will not get away with failing to check a certain factor, if you failed to check you will need to manage the bad decision there is no automatic out for the information you failed to determine upfront.
4. Compliance - Ensure you are compliant with labour legislation. With all the best intentions in the world, ignorance is not bliss. If you are non-compliant the risks can bring a business to its knees. Examples of a few risks are – a CEO being imprisoned for a major accident due to non-compliance in terms of safety, designated employers in terms of the employment equity act not complying with the provisions of the act being up to 10% of turnover, fines and possible imprisonment for not abiding by the National Minimum Wage Act or employing foreigners without the necessary work permits, following the incorrect dismissal procedure and having to take a deviant employee back or paying an employee a settlement ordered by the CCMA… the list goes on.
5. Market-related salaries and fair remuneration - Your business could bleed talent if you don’t pay market-related salaries. You may be training and investing in your staff, while your competitors are lying and waiting to pounce and offer your staff a better salary. The cycle will continue as you train and develop staff, and your competitor poaches. The cost of recruiting training and orientating is high double-check that you are competitive in the market.
6. Culture – We have all heard the phrase “culture eats strategy for breakfast” all the above will fail if you don’t create a cohesive unit that goes in the same direction. How do you do this? Develop an organisational culture which is a way of doing things being the behaviours and standards that are required to be a member of the organisation. It’s best to develop these behaviours and standards with your team. The team holds everyone each other accountable to these standards, levels don’t count the cleaner can hold the CEO accountable and vice versa.
What are you going to do differently in 2023? Should you need assistance with a cultural session; HR, supervisory, compliance or disciplinary training; psychometric tests and background checks, compliance evaluations, and culture development sessions; or general advice please feel free to get in touch.
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