WORK PLACE:So You Want To Be An Owner

Last month’s column outlining "10 things every manager must know about human resources" was so much fun that I thought I’d follow the same concept in addressing those of you who are thinking about taking that "leap of faith" and starting your own business.

Over the years I’ve had the opportunity to consult many rookie owners who were struggling with growing and developing a new business. I’ve also consulted with first-time owners facing a different problem — "growing pains" — the kind that stem from too much growth too quickly. In both cases, the owners faced the same human resource challenge: the need to hire and retain the right people. Time and again I watch talented technicians (in the broad sense of the term) start companies without the faintest idea of how to prepare for or address the human resources component in the business. These owners very quickly learned that ignorance was not bliss. They also learned the hard way that every business problem stems from a human resource problem.

If you are contemplating starting your own business, wouldn’t it be nice if you could look into the crystal ball and see all of the potential HR challenges that lie ahead and await you? After all, if you knew about the challenges in advance, you could better prepare for (or even ward off) the difficulties. Imagine that! While some might argue that the obstacles made them better leaders or owners I, for one, wish that I could have avoided some of my own "people" mistakes.

While there’s no way to anticipate or avoid all of the HR challenges that await a new business owner, there are some fundamental realities that, if understood and planned for prior to starting a company, can make owning a business more fulfilling and rewarding.

THE 10 BIGGIES. Let’s take a look at the 10 things every owner must know about human resources.

1. You are who you hire. If you hire "employees from hell," you will soon have a "workplace from hell." The best way to avoid performance problems is not to hire them. Take the time to hire smart using an effective, legal, comprehensive and consistent process.

2. All it takes is one employee. One employee can bring down your business. From legal liabilities to workplace morale, one bad apple can start a downward spiral that leads to the end. Don’t wait to address problems or issues until it’s too late.

3. Without trying, you create the culture of the organization. Culture is created by the attitudes and actions of a company’s leaders — primarily the owner. It is shaped by what a company chooses to measure and control, how it handles crises, how managers coach and develop people, how employees are compensated and rewarded, and the processes used to select, promote, retain and terminate people. Take the time to define your culture and then walk the talk.

4. A trusted advisor will make your life easier. It’s lonely at the top, so develop a trusting relationship with someone who can provide you with sound, objective and wise counsel. The journey to the pinnacle of leadership can be painful and it helps to have a friend.

5. People just aren’t what they used to be. The workplace is more diverse than ever and Generation Xers and Ys are here to stay. Understand who these people are and how to motivate them. Accept the differences and learn to build consensus among all generations and cultures of workers.

6. Don’t mess with employment regulations. Discrimination, equal pay, overtime, minors, I-9s, FMLA, ADA, Workers’ Compensation, unemployment, Drug-Free Workplace Act...
employment regulations govern nearly every employment decision you make. Consult an expert for advice before initiating a transfer, demotion, promotion, layoff, termination, pay change, bonus plan, internal investigation, new benefit, employment policy or other decision. What you don’t know can hurt you.

7. The No. 1 problem with most terminations is that they don’t happen often enough. Avoid misdirected compassion — don’t keep a poor performer around out of sympathy. Your actions send a message to others (customers and employees) that you tolerate substandard performance. Result? You lose credibility.

8. Don’t rely solely on your gut. Before you allow anyone to join your company, promote your image, interact with customers, make your bank deposits, use your equipment, copy your keys or represent you in any way, conduct thorough criminal, credit, reference, motor vehicle and other necessary background checks.

9. Train to retain. A key motivator for the younger workforce is the ability to grow personally and professionally. Provide opportunities to develop new skills and to assume new roles and responsibilities. Employees who are constantly learning and growing will be happier and more productive.

10. Avoid placing square pegs in round holes. This includes you! Learn about your personality and the personalities of your employees. Build upon strengths. Place people in roles where they can act natural. Square pegs in round holes cause stress...and stress (at best) lowers productivity.

TAKE THE LEAP. If you’re on the verge of starting a company, ask yourself if you’re ready to embrace these concepts. If so, go for it! (Assuming, of course, that a proper foundation is in place in the legal, financial, sales and marketing, operations and administration arenas.) With effective planning and execution, along with sound leadership, wisdom and prudent decisions, you could build the next preeminent pest management organization.

If, on the other hand, these HR realities seem foreign to you, it’s time to go back to the drawing board...

The author is president of Seawright & Associates Inc., a management consulting firm located in Winter Park, Fla. For the past 15 years, she has provided human resource management and compliance advice to employers across the country. She can be contacted at 407-645-2433 or jpileggi@seawright.com.