Every business owner should be informed regarding the rules and regulations that govern their industry. This gives us peace of mind, and may limit being hit by – fines, penalties and the ever-present threat of litigation. To simplify matters, here are our 4 Steps For Better Human Resource Planning.
Step 1: Know the Laws Governing Your Industry
There are many redundant and even contradictory governmental regulatory agencies in the local, state and federal levels. These various regulations will not only affect our H.R. efforts but also operational and administrative tasks as well.
Human Resource Planning – Laws governing
- Equal Opportunity Laws: These are basically governed by the Equal Opportunity Employment Commission (EEOC). These were started with the Civil Rights Act of 1964. That basically states you can’t discriminate in your hiring practices based on gender, race, religion, origin, age, or disability.
- Wage Laws: The Fair Labor Standards Act ensures that American workers receive a minimum wage for work performed. Although these are federally mandated, minimum wages vary state by state.
- Workplace Safety: This started with the 1970 Occupational Safety and Health Act . It eventually lead to the founding of OSHA as the main regulatory and compliance authority for every state.
- Health Coverage: This wasn’t mandated nationwide until the passing the Affordable Care Act in 2010. It is still in the process of changing quite regularly.
- Americans With Disabilities Act: This began in 1990 and may become an issue for many small business owners because they set the accessibility requirements for many buildings across the country.
- State Health, Fire, Sanitation, Building and Planning Departments. These provide many of the local regulations and requirements for business owners and may affect your HR requirements.
Step 2: Create an Employee Handbook.
An employee handbook provides employees information about your company’s culture, general information, policies, procedures, rules, benefits, expectations, disciplinary/grievance procedures etc.
According to BLR, an organization that focuses on simplifying business compliance issues, employee handbooks are not required by law but – An employee handbook is a useful tool for providing employees with that information that, by law, must already be delivered in writing (e.g., equal employment opportunity (EEO) statements). Rather than provide employees with a haphazard pile of mandatory written notices. And then attempt to document that those notices were received. It makes sense to collect them into an organized, easy-to-use handbook or similar document. Finally, a legally compliant and up-to-date employee handbook may even provide legal protection. If an employer’s policies or practices are ever challenged in court.
There’s also a Society for Human Resource Management that provides sample employee handbooks. The business magazine Inc. has a great article called What to Include in an Employee Handbook
Step 3: Prioritize Workplace Safety:
Work related injuries effect millions of workers every year. In 2016, there were 4,836 deaths caused by work related accidents according to the Bureau of Labor Statistics. The main governing authority that deals with this is the Occupational Safety and Health Administration. Commonly known as OSHA.
Now for many business owners, OSHA is a dirty little acronym right up there with IRS and ADA. This is because compliance to their numerous requirements can take a lot of time and money. Even though many rules seem obsessive, redundant and confusing. OSHA has set America apart as the safety standard leader that many countries imitate today. Regardless of which rules we must follow, its always a good idea for our workplace safe and secure for our employees and customers.
There is a useful tool from the U.S. Dept. of Labor that provides a number of good pointers, worksheets, ideas and other ways to initiate your own “4-point safety and health program”. Here are a few highlights:
- Management Commitment and Employee Involvement: The manager or management team leads by setting policy, assigning and supporting responsibility, setting an example and involving employees.
- Work-site Analysis: The work-site is continually analyzed to identify all existing and potential hazards.
- Hazard Prevention and Control: Methods to prevent or control existing or potential hazards are put in place and maintained.
- Training for Employees: Supervisors and Managers. Managers, supervisors and employees are trained to understand and deal with work-site hazards.
Step 4: Human Resource Planning – You Must Keep Records
Keeping good records does not have to be complicated. We just need to come up with a system that works for us. Records should be kept for all employees even after they leave. These records are important in case problems arise in the future (like law-suits from past employees). As a business owner, we are the gatekeepers and these records must also be kept secure and private. Smaller companies typically keep hard copy files, while larger entities may digitize everything. Regardless of the means, we still need to keep and maintain accurate records.
The first step is to start a file with their resumes, contracts and hiring documents right after they’re hired. Other items can be included over time i.e. training records, performance reviews, disciplinary records, tax forms, payroll information etc. Any medical records should be kept separately in a very secure location. Finally, pay all your employees on time, fairly and honor all benefits. This means keeping track of payroll properly and ensuring all tax deductions, insurance, bonuses, compensation packages, overtime and other pay related issues are monitored and recorded.