As your business grows, so will your team. Adding new employees is a big part of any business, but it can be a problem if you hire new people when your business isn’t ready to take on more staff. Here are some things you should think about when you’re considering hiring additional employees.
Creating a startup venture is no easy task. Startups come in all shapes, sizes, and industries. Neil Blumenthal, cofounder and co-CEO of Warby Parker summarizes it best, saying, “A startup is a company working to solve a problem where the solution is not obvious and success is not guaranteed.”
According to Small Business Trends, almost half of small businesses don’t make it past the fourth year. These companies still aren’t in the clear, as Forbes estimates that the overall failure rate for startups falls between 80 and 90 percent.
A federal judge has blocked the upcoming Department of Labor (DOL) overtime rule instituted by the Obama Administration. The rule was set to take effect Dec. 1, 2016, increasing the salary threshold for overtime eligibility from $23,660 to $47,476. This would have made any workers under the threshold eligible for overtime pay for over 40 hours worked per week.
You’ve probably heard the old adage, “If it ain’t broke, don’t fix it.”
I remember in my youth that my grandfather swore by this philosophy. He was very particular when it came to what he owned and how to maintain it, as he lived through the depression and he was cheap! Fast forward a few years to where my grandfather trusted me to mow his lawn. Now by trust I mean he sat in his lawn chair, watched, and critiqued each and every pass I made. Like I said, he was particular.
That Christmas my family got my grandfather a new lawnmower and the first thing he said was, “That manual one still works fine. Matthew was able to mow all summer without any issues.” Now there were issues: the mower was ancient, rusted, and dull. All signs pointed to the fact that a change was necessary BUT would gramps be open to it?
The next summer I was not asked once to come mow his lawn. My grandfather religiously mowed it every week because, as he stated, “This thing is a gem! It’s like I’m not even putting forth effort and my lawn looks the best I’ve ever seen it!”
You need to identify problems before you can fix them. Inefficiencies, non-compliance, and other issues with HR policies can hurt your business, especially when you’re not sure why they exist. Fortunately, you don’t need a private-eye to get to the bottom of this mystery. What your company could use is a good human resource audit.
Professional Employer Organizations can perform HR audits and provide recommendations on where you can improve. Here are three reasons why it might be time for your business to undergo an HR audit.
Most entrepreneurs start a business based on something they are passionate about. For the majority of auto shop owners, their dream started working on cars. When that passion turns into a business venture, it quickly becomes apparent that running your own auto shop requires more than just a love of cars.
Leading a group of people, keeping systems in place to track hours, and tracking employee history are just a few of the tasks that shop owners handle on an everyday basis. Owners have enough on their plate in handling day-to-day business, but the work is not done when the shop closes. Here are some of the most common HR issues facing these small business owners.
The trucking industry has played a significant role in the industrial development of the U.S. over the past century, providing a link from manufacturers to consumers. Over that time, there have been major advancements in everything from our interstate highway system, to governmental safety regulations, to the tractors and trailers themselves.
Today, the transportation industry faces several challenges, many of which are related to consistent changes in the regulatory environment. The American Transportation Research Institute released a report in October of 2015 that listed the top 10 issues facing the trucking industry. The top three (in order) were Hours of Service Regulations, the Compliance, Safety, Accountability (CSA) Program, and Driver Shortage.
In the recruiting world we have heard it all before…
- “I don’t want to post a compensation range because everyone will expect the high end.”
- “I don’t want my current employees to know what others are paid.”
- “I don’t want my competitors to know our salaries.”
- “Other postings online do not include a compensation range, so why should I?”
Although these are common thoughts for all business owners, it can be directly affecting your candidate pool numbers. In fact, SMART Recruit Online found that job advertisements with a compensation listed increased the total number of candidates by 30 percent. Small and mid-sized companies are at a disadvantage by not posting a wage since larger companies have known salary and hourly rates.
Update: Federal judge blocks overtime rules a week before they take effect. Learn more in our new post.
As a small business owner, it is crucial that you stay current on the latest government regulations affecting your business and employees. Effective Dec. 1, 2016, the salary threshold for overtime eligibility will increase from $23,660 to $47,476. This means that anyone earning a salary under the new threshold will now be eligible for overtime pay for any time worked beyond 40 hours in a week.
The Department of Labor estimates there will be approximately 4.2 million workers affected who will now be eligible for overtime. Business owners must reevaluate their current workforce to meet the new requirements. The Department of Labor will automatically update the salary threshold every 3 years moving forward to match the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region.
Whether your company is growing or you are simply filling an open position, the hiring process can be painstaking for any business owner. Where do you start? Should you post a listing to online job sites? Should you place ads around the local university? Do you set up a booth at a job fair?
Hiring the right people is not an easy task. It can be a lengthy process that takes away from other priorities, like growing your business. It takes an average of 52 days to fill an open position, according to a recruitment study from Bersin by Deloitte.