HR is often seen as dealing with “warm and fuzzy” issues that lack a tangible link to revenue generation. And in small business, revenue-generating activities are the primary focus.
The trouble is that “warm and fuzzy” issues can become “hard and nasty” if you ignore them, so a proactive approach to HR is essential for small business owners.
I recently spoke with HR expert Avril Henry at our annual conference to get her top 10 tips for attracting and retaining good people.
- Don’t believe common “Gen Y” mythology. The classic Gen Y person simply wants to be inspired by a good leader and be respected for their skills, so work with their strengths. They’ve grown up with technology, so they’re great people to draw on from spreadsheets to creating a social media strategy. They also have strong morals and are collaborative so they make good team members.
- Engage new employees from day one. A new employee will form a lasting opinion from the moment they step through the door and throughout their first few weeks. You have one month to make them a strong advocate of you as an employer so make them feel welcome and connected from their first day. And don’t forget that Gen Y and Gen X in particular are likely to promote that positive impression via social media.
- Have a clear vision, mission and set of values. And make sure these guide everything you do. Your values should mean the same thing to everyone from the general manager to the junior support person.
- Set clear expectations. In the same way your job descriptions will improve your recruitment success, they will also form the basis of setting very clear expectations of what good performance is in each role. Many employers assume too much when it comes to the clarity of goals for their employees. Agreeing and documenting clear key performance measures for each person and role and linking these to the broader company goals will leave no room for ambiguity.
- Give regular effective feedback. It doesn’t matter if you’re the CEO or the receptionist, everyone can benefit from receiving regular, constructive feedback. This is one of the top five motivators for Gen X and Y, the two generations who will dominate the workplace over the next 20 years.
- Engage and embrace. Employee engagement is much more than birthday cakes and the office Christmas party. Consciously set the tone in your business by creating a positive workplace which has a clear retention policy for keeping your best people.
- Create a culture of learning. Allow your people to develop their professional skills and benefit from the wisdom and experience of more senior colleagues. Embrace the different motivators and strengths that drive your people to come to work and provide the right mentoring, coaching training and development.
- Remember that the whole person comes to work. This is especially true of Gen Y – in fact you may hear more about their weekend activities than you care to know! Create opportunities for them to learn, stretch and grow as experts in their field while maintaining a reasonable balance in their lives.
- Communicate openly. Being clear and honest with your people will always create a better outcome than avoidance or being “too nice.” It’s far more important to drive a culture of respect than attempting to make everyone best friends.
- Let go of poor performers. Australian managers are notorious for being poor at dealing with ineffective performance. Ignoring an issue or handling it badly will impact staff morale, productivity and profitability. Following the appropriate steps can turn poor performers around or exit them from your business correctly and with dignity.
Craig Parker is general manager of Affinia. He has over 20 years’ of experience in both retail and institutional banking, with a strong focus on strategic planning and continual innovation. If you like this article, you can find more by Craig here.
