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As a contracting business grows, it is necessary to hire employees to assist in the many tasks of operating the business. Managing employees is one of the most difficult tasks any business owner faces. Contracting companies often face additional challenges because some sectors of the industry are seasonal and some specialties have a higher turnover rate than average.
“It’s not what you pay a man, but what he costs you that counts.”
—HUMORIST WILL ROGERS
Hiring and managing employees is a time-consuming task that is part psychology, part economics, and part organization. Attention to detail is required, not only for government and insurance reporting but also because employees will descend on the payroll department if they think there is even a small error in their paycheck or if it’s delayed.
In spite of the headaches, hiring employees can be an extremely positive experience. Not only do they help the business grow and prosper, each employee also makes contributions to the personality of the company. When interviewing prospective employees, keep in mind the effect he or she will have on the mood and temperament of you, your business, and other employees.
An employee handbook is a great tool for both employer and employee. As a company grows, it needs to create an employee handbook to document the employer’s expectations of employees. The handbook will describe expected performance, how an employee can earn a raise or promotion, what fringe benefits are available, and other information such as work hours, dress code, and acceptable/unacceptable behavior. Owners can become better managers by participating in the process of creating the handbook because it will help them decide which policies are most important and most practical for their company. By setting guidelines and laying out some ground rules, a handbook can be a positive tool for improving morale and communications.
Both books and internet websites provide information about creating a handbook. In addition, it is usually wise to have your lawyer take a look at the document to ensure that you are not violating state or federal law.
Most contractor handbooks include at least the following items:
The handbook can be emailed to each employee with a date by which time employees should sign off on having read it. Hard copies should also be available. Hint: Try not to make it read as legalese or people are likely to forget what they’ve read or simply gloss over it. Make your points in an easy to follow manner… make your handbook concise and readable.
Job applications should be straightforward and easy for the prospective employee to complete. In addition to basic contact information, the application should ask for driver’s license number, level of education, and special skills and have space to list several business references.
It is illegal to ask questions about race, gender, and age because these might lead to discrimination questions. Some states require that applicants fill out a special form that allows the employer to obtain detailed information about the applicant’s motor vehicle record. A simple telephone call to verify references is essential. Some states provide public court records on the internet where employers can learn if an applicant has a criminal record.
Once hired, new employees must fill out Form I-9, “Employment Eligibility Verification,” which proves that he or she is legally permitted to work in the United States, and Form W-4, which provides the employee’s Social Security number and indicates the allowances (deductions) she or he is claiming for income tax purposes.
Employers are also encouraged to develop written job descriptions for each job category in the company. These descriptions are useful not only to inform applicants about the job they are applying for but can also be used during the periodic employee review. Small businesses should conduct a review with each employee at least once per year to discuss overall performance and strategies for improvement. Employers should also seek suggestions about how to improve the way the company operates.
Written job descriptions must be more than a simple list of tasks to be performed; they should be results oriented by including desired outcomes of the job. The description should start with a job purpose, which is a general summary