HR Basics for Small Business
Overview
HR is a minefield of laws,
regulations and requirements. For most small businesses (fewer than 50
employees) there are basic requirements for a sensible, practical HR
program.
These basic requirements are:
-
Creation and maintenance
of employee files
- Publication of an
employee handbook with certain policies
Without question, there is a
lot more to HR than the items listed above. But with regard to compliance with
HR rules and regulations, this is where owners of a small business need to start.
Employee Files
Employee File
You should create and maintain
a separate file for each of your employees. This file is where you keep all of
the information you collect on employees, such as:
- Resumes and employment
applications
- Offer letters, employment
agreements or contracts
- Payroll information
- Basic employment data
including
- Information about
participation in benefit programs
- Awards, recognition or
disciplinary documents
- Performance evaluations
- Termination documentation
and exit interview information
It's best to assume all this
information is confidential, so keep these files in a secure location. Only
people with a compelling business reason should have access to these files.
Employee Handbook with Company Policies
An employee handbook is the
centerpiece of an effective HR program. The employee handbook explains your
company's policies and procedures, and communicates your expectations to
employees. A good handbook also helps to protect your company in the event of a
dispute.
As with many issues
surrounding HR, the policies you include in your handbook can be comprehensive
to the point of being ridiculous. For most small companies, an employee
handbook with the following policies makes sense:
Employment in General
- Introductory Statement –
Purpose of the Handbook
- Employment Equity Policy
- New Hire Policy
- Policy Against Harassment
and Discrimination
- Open Door Policy
- Confidential Information
- Computer Use Policy
- Social Media Policy
- Employment Categories
- Work Hours
- Alcohol and Drug Policy
- Personal Appearance
Policy
- Return of Property
- Solicitation Policy
Timekeeping and Payroll
- Timekeeping Procedures
- Paydays
- Pay Deductions
Work Conditions
- Violence in the Workplace
- Workplace Safety
- Drug Free Workplace
Policy
- Grievance Policy
- Employee Conduct and
Disciplinary Action
Benefits
- Sick Leave
- Personal Leave
- Holidays
- Bereavement Leave
- Maternity/Paternity Leave
- Insurance
- Workman's Compensation
Insurance
- Business Expense
Reimbursement
IMPORTANT
NOTE: Creating your employee handbook is a crucial first step. But it's also
critical that your employees read the handbook and agree to your policies as a
condition of their employment. The best practice is to ask employees to
acknowledge their acceptance and to store that acknowledgement in case it's
needed in the future.
Creating an employee handbook
with the all the necessary policies seems like a daunting task. But Finding Shapes in association with Norman Brett & Associates will help
you get it done.
www.normanbrett.co.za | 0823892264
Article by Jack Hayhow
