Effective Personnel Management - Startup Business Bureau

Effective Personnel Management

Utilizing people’s skills effectively is an issue of human resources, often known as effective personnel management. They could work as retail salesmen, administrative assistants, factory workers, or technicians in research labs.

Personnel management at a company begins with the selection and employment of qualified individuals, and it continues by guiding and supporting their development as they run into obstacles and conflicts while attempting to achieve predetermined goals.

Recruiting and employing new employees are just some of a personnel manager’s duties.

  1. To organize jobs into categories and create pay grades.
  2. To offer staff advice.
  3. To address issues with discipline.
  4. To bargain over contracts with labor unions and service unions.
  5. To create safety guidelines and procedures.
  6. To oversee benefit plans such group insurance, health insurance, and retirement programs.
  7. To set up regular evaluations of each employee’s performance, highlighting both their strengths and areas in need of improvement.
  8. To support people in their efforts to improve and become qualified for more specialized employment.
  9. To organize and manage training initiatives.
  10. To stay current on people management developments.

To better comprehend the duties of a personnel manager, consider how you would respond to the following difficult employee situations:

  • Employees of the company, particularly the best qualified ones, can find comparable or even superior employment with other companies.
  • A company must train and develop its own employees when there is a lack of supervisory and specialized professionals with the necessary expertise and job competencies. This can be costly and time-consuming.
  • The price of employing and training staff members at all levels is rising; a salesperson can cost several thousand dollars. A poor hiring decision or slow, ineffective training methods might be expensive.
  • Managers of human resources are required by law to hire, develop, and advance women and members of underrepresented groups. The issue with doing this is that many of these personnel lack the necessary training and expertise.
  • Whether or whether they are represented by labor unions, most employees continue to push for changes to direct pay, employee benefits, and working conditions. All obligations must be reasonable for the company, in accordance with other employers’ current standards of conduct, and understood and accepted by the employee. All employee policies and operational procedures should be created and negotiated with great attention to achieve this.
  • Simply because their employer provides competitive pay, perks, and working conditions, some people may not perform to their full potential. In addition to these monetary or material rewards, they seek employment responsibility, growth potential, and accomplishment acknowledgment.
  • Laws governing pensions and other benefit schemes have been developed, and they also prohibit forced retirement at age 65. Compliance with such modifications is quite difficult.
  • The goal of personnel management is to find workable solutions to these issues. It typically offers line management help in big businesses. The responsibility for developing and implementing policies, procedures, and programmes for hiring, selection, training, placement, safety, employee benefits and services, compensation, labor relations, organization planning, and employee development falls to the personnel department in this staff capacity.
  • The owner-manager of a business frequently must oversee human resources as well. In such a situation, having a general understanding of current trends and practices in human management is essential.
  • Every small firm needs employees to run their operations. This entails hiring new employees and ensuring that they contribute positively to the company. The competencies of job candidates and employees are matched and developed to meet the demands of the company through effective human resource management. You will be helped in this process and a responsive personnel system is essential to progress.

Managing human resources requires striking a balance. At one extreme, you only work with qualified candidates who fit the requirements of the company. On the other hand, you can train and develop staff to fulfil the demands of the company. The majority of growing small businesses err on the side of hiring the best talent they can afford while also realizing the necessity of training and developing both existing staff members and new hires.

How to hire and train the proper people is one function of personnel management, and it addresses the traits of a successful personnel system, such as:

  • evaluating the manpower needs.
  • hiring employees.
  • staff screening.
  • hiring and choosing employees.
  • introducing new hires to the company.
  • deciding on pay-related concerns.

The human resource management aspect of training and development is covered by another function. A third role focuses on how the human resources system and training and development activities work together to increase employee morale and output. These three responsibilities emphasize the need of a positive climate for human resource management and offer detailed instructions for fostering one.

Human Resource Management Audit Questionnaire

  • Does the company have a plan for predicting its future staffing requirements?
  • Are there rules for choosing staff, or are they chosen just on intuition?
  • Do all positions have job descriptions?
  • What aspects of their professions do workers like?
  • What about their work do employees find unpleasant?
  • Why do employees leave the organization?
  • Exists a current training program. Is it based on an evaluation of the firm’s current position or where it ought to be in the future?
  • Are there many different training programs offered?
  • How is the company’s morale?
  • Do staff members take your words at face value?

Hiring the Best Resource

A company is only as good as its employees. Therefore, you must take the time to discover and hire the ideal people if you want to operate your firm effectively. In comparison to, example, a major firm with hundreds of employees, the hiring process may seem a little more daunting if you are employing your very first employee. That is because you and any partners you may have are solely responsible for all employment decisions. Also keep in mind that you must obtain an Employer Identification Number (EIN) before hiring any personnel, which you can do quickly with Sun Doc Filings.

Finding the right applicant, creating application forms, identifying the skills and competencies required, conducting interviews with potential hires, and putting up personnel policies are all steps in the hiring process.

Businesses of all sizes and types need to carefully consider their staffing needs. Taking on a new employee carries the same risk for all businesses. But the smaller the company, the less it can afford the time and expenses associated with employing and then discharging the incorrect individual.

Larger businesses have created efficient hiring practices and ways to reduce this risk. Owner-managers of small to medium-sized businesses must also use some of these staffing practices if they hope to manage their business efficiently.

Making personnel decisions

Get to know yourself first. Be aware of the industry you are in. Know your strengths and weaknesses as a person and attempt to think ahead to how you will handle the scenarios that you expect to encounter while running your business daily.

Write down your policies after that. Include everything that could have an impact on employees, including salaries, raises, promotions, holidays, sick days, complaints, fringe benefits, and even retirement plans.

Establishing employment and training procedures will increase your chances of getting the task done the way you want it done. You might want to think about how you want it accomplished. For the following categories, you might wish to think about making written policy decisions.

Hours

The number of hours to be worked each week, the number of days to be worked each week, evening and holiday work, and the timing and mode of payment for both regular and overtime labor should all be taken into consideration. Unnecessary overtime pay at premium rates is one source of wasteful spending. You might be able to schedule your employee’s work in advance to minimize overtime. When peak times do happen, you can frequently manage them by employing part-time staff compensated at standard rates.

Compensation

A basic salary that is competitive with what is offered by other local businesses that are like yours should make up most of your employees’ income. It could be conceivable to add incentives to the base pay, such a modest commission or quota bonus scheme. Try to connect the reward to both your own and your colleagues’ ambitions. Whatever strategy you use, make sure every employee fully comprehends it.

Added Bonuses

You might think about providing your staff with discounts on goods, free life and health insurance, a pension plan, and school and college tuition reimbursement. You might also consider enrolling with other retailers in a group workers’ compensation and disability insurance plan. A plan like this could result in significant premium expense reductions for you.

Vacations

How long will the holidays last? When during the year they may be taken, please? Whether or not I get paid?

Will you permit employees to take time off for personal reasons, family emergencies, holidays, and special occasions like election day, Saturday, or Sunday holidays?

Training

You must guarantee that each employee receives the necessary job-specific training. In a smaller company, the owner-manager is typically in charge of training. However, if you have managers, each one of them needs to understand the value of teaching well and set aside time to do it.

Retirement

What are your plans for Social Security, pensions, and insurance from annuity plans that are available to those who are of retirement age?

Grievances

Without regard to the calibre of the employment you provide, you should prepare for conflicts with your staff. Creating a plan for them and a grievance management process is the best line of action. Establish provisions for third party arbitration while considering the employee’s ability to request review.

Promotion

You should think about promotion issues including typical wage and salary increases, changes in job titles, and the impact your store’s expansion will have on this area.

Review of Personnel

Will you regularly evaluate the performance of your employee? What aspects will you consider, if so? Will you recommend changes to salaries or training?

Termination

Even though many managers find this to be an unpleasant topic, it would be prudent to have a documented policy on things like layoffs, seniority rights, severance pay, and the circumstances necessitating a summary discharge.

When you have created your personnel policies, put them in writing and distribute copies to all your staff. Hours of work, time tracking, paid holidays, vacations, deportment and dress codes, wage payments, overtime, separation procedures, severance pay, pension and retirement plans, hospitalization and medical care benefits, and grievance procedures are a few examples of things that should be standardized rather than subject to a supervisor’s whim.

Identifying the Skills and Capabilities Required

The secret to hiring the best candidate for the position is determining what kind of talent is required to complete the task. You may match an applicant’s talents and expertise to the job criteria after you are aware of what is necessary to perform the position.

Defining a job is the first step in analysing it. As a busy owner-manager, let’s say you choose to hire someone to help you with part of your responsibilities. Consider the various tasks you carry out and identify your strong and weak points.

Let’s assume further that you’ve decided you’ll require assistance at the office. The telephone never stops ringing. Letters that require responses are mounting. Ordering of goods is required.

Once you’ve created a job description on paper, decide what qualifications the candidate has to possess. Which skill level will you accept as the minimum? Let’s imagine that you originally intend to hire a secretary but learn that they are hard to come by and pricey. Furthermore, secretaries are nearly as expensive and difficult to find as stenographers in your location.

You might be able to get by with a typist. It might be simpler and less expensive to hire a typist than a secretary or stenographer. Numerous high school kids are skilled typists and are looking for part-time work.

One other thing: Be careful to be very specific about what you want when you start looking for someone to fill your position. Imagine if a manager-owner posted a job listing for a “sales clerk.” What skills ought to the applicant possess? Simply add up the sales receipts correctly? Keep a list of your clients and occasionally remind them about your goods? In charge of the shop while you’re away? For various persons, the title “sales clerk” has varied connotations. As defined by the type of training you can provide the employee, be sure you are aware of the abilities you require and the talents you can get by with.

Finding candidates

When you are aware of the abilities your new hire must possess, you are prepared to make contact with those who can assist you in finding candidates for open positions.

Every state offers a job service (sometimes called Public Employment, Unemployment Security Agency). They are all connected to the United States Employment Service, and regional offices are prepared to assist companies with their employment challenges.

The employment service will provide aptitude tests to candidates to screen for you (if any are available for the skills you need). Passing marks demonstrate the applicant’s aptitude for picking up new skills. In order to get the skills you want, be as explicit as you can.

Recruitment assistance will also come from private employment agencies. However, the private agency will charge a fee for its services, either from the employee or the company.

Putting a “Help Wanted” sign in your own front window can also attract candidates. Naturally, there may be a large number of unqualified candidates interested in the position, and you cannot interview a candidate and serve customers at the same time.

Another way to find candidates is through newspaper adverts. You can reach a big pool of potential employees and screen them as you see fit. If you provide a phone number at the store, you can find yourself talking on the phone rather than helping a customer.

Job candidates are easily accessible from nearby schools. The neighbourhood high school might have a distributive education programme where students take classes while working part-time in your store to learn about selling and marketing. Many part-time students continue working at the shop even after they graduate.

You can also identify employment candidates by getting in touch with friends, neighbours, clients, vendors, current employees, local organisations like the Junior Chamber of Commerce, service groups you belong to, or even a nearby military post where personnel are transitioning out of the service. Do not, however, ignore the drawbacks of this kind of hiring. What happens to these sources’ goodwill if you hire the friend they suggest instead of them, or if you have to terminate the person they suggested?

Your business kind, region, and personal preferences all influence the recruitment strategy you choose. There are a lot of resources at your disposal. Your needs could be better served by a combination. Regardless of the source, the most important thing is to identify the right candidate with the relevant abilities for the position you want to fill.

Creating Application Forms

If you done a decent job listing the talents required, the hardest part of your job will be discovering and hiring the one ideal employee. You need a system for vetting the candidates and picking the best one for the job.

You can use the application form as a tool to make the selection and interview processes simpler. The application should have blank sections for all the information you require to evaluate the applicants. The form example is shown below.

To obtain enough data, you’ll need a rather comprehensive application. Keep the form as straightforward as you can, though. The form could be mimeographed or be a duplicate.

Before you speak with the applicants, have them complete the application. It’s a fantastic place to start the interview. It also contains information on previous employers, including names and addresses.

Always keep in mind that the Civil Rights Act of 1964 forbids discrimination in hiring decisions based on a person’s race, religion, sex, or national origin. Public Law 90-202 forbids discrimination against those who are at least 40 but under 70 based on their age. Federal statutes forbid prejudice against people with physical disabilities.

Other references are not particularly significant when an applicant has work experience. However, extra references can be sought from people like school counsellors who can provide unbiased information if the amount of professional experience is minimal. Personal recommendations are practically meaningless because candidates would only provide the names of persons who are complimentary of them.

Interviewing potential employees

The goal of the job interview is to learn as much as you can about the applicant’s employment history, particularly their work habits and skills. Your main objective is to elicit personal and professional information from the applicants. Asking each applicant direct questions like, “What did you do on your last job?” is the best course of action. What was your method? Why did it get done?

Analyze the applicants’ responses as you go. Do they have any knowledge of the subject at hand? Are they evasive or incompetent in their jobs? Can they explain the differences?

If you believe you might be interested in an applicant after the interview, ask them to check back with you later. Never make a commitment until speaking with all potential candidates. Make sure you choose the best candidate for the position.

Verify the data you have got next. The most reliable source is typically a former employer. An ex-employer could occasionally divulge details over the phone. However, it is typically preferable to request information in writing and receive a written response.

Asking the applicant’s past employers a few specific questions that may be answered with a simple yes or no checkbox or with a brief response will assist ensure a timely response. For instance: What was the employee’s tenure with the company? Was the quality of his or her work low, average, or excellent? Why did the worker leave your company, exactly?

You are prepared to choose once you have checked all the information provided by your applicants. The right employee can aid in your financial success. The wrong worker will waste your time, materials, resources and may even drive away your clients.

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