How effective Human Resources can improve your bottom line
40 questions for small and medium sized businesses
By Carol R. Ferguson
© 2001 TOWHEY Consulting Group Inc. All rights reserved. For reprint permission contact info@towhey.com.
Whether you are an entrepreneur, a small business owner, or a manager in a large organization, your business success depends on how well you manage your employees. How well your employees work will always be a key element in the achievement of your business objectives.
Your past exposure to "Human Resources," or "HR," may be limited to a large corporate HR department that did something, somewhere, for some reason that you may not have been totally familiar with. In fact, your last impression of HR in a corporate environment may not have been a pleasant one.
Now that you are responsible for producing bottom line results, what should you know about HR? As a business leader, you need to focus on achieving your business objective. As a business leader, you understand that your employees will play a critical role in your success. How can you ensure your employees are able to contribute meaningfully to the bottom-line success of your organization?
Traditionally, HR experts consider six key HR functions when planning for business success in a non-union environment:
1. Staffing Analysis and Organizational Design
2. Total Compensation and Benefits
3. Recruitment and Selection
4. Training, Development and Learning
5. Performance and Rewards
6. Employee Relations
Here are 40 questions you should ask yourself, or your HR advisor, when you want to maximize your employees? contributions to the bottom line.
Staffing Analysis and Organizational Design
What organizational structure is best for your company to achieve its business objective? Questions to ask yourself:
1. How does/will work 'flow' within the company and is there any repetition, duplication or redundant work being performed?
2. To whom will employees report? Does this person have the skills, training and knowledge necessary to supervise effectively?
3. What is the best structure for your company? Should it be a traditional, layered hierarchy? Or are self-directed teams more appropriate? How about a flat structure with everyone reporting to one business leader? Take some time and draw your structure on paper to see if it makes sense.
4. How many employees should report to any one supervisor? Is this a manageable arrangement given the nature of the work being performed?
5. What kind of Position Descriptions do you need? Have you captured the correct activities and accountabilities of each position?
Total Compensation and Benefits
How can you use your compensation and benefits program to attract, retain and motivate the best possible workforce to achieve your business objective? Ask yourself:
6. How competitive is your company compared to similar businesses? Can you match the salaries of your competitors?
7. What benefits do your employees really value?
8. How can you design a compensation and benefit program that motivates each level of employee to contribute to your overall success?
9. How much will new/existing benefits programs cost your company? What can you afford?
10. Do you need different compensation programs or salaries in order to attract and retain employees at different levels?
11. Do your employees understand your total compensation program? How effectively are you communicating its benefits?
12. Could you save money by outsourcing certain compensation functions such as payroll administration?
13. How do you collect and analyze employee data (.e.g. time worked, pay rates, overtime rates, special benefits, vacation time, sick time, etc.) for compensation and benefits purposes? Could special human resources technology (HRIS) improve cost-effectiveness?
It's a worker's market out there -- especially for businesses that rely on skilled employees. You want to attract and select the right new employees who will quickly develop into superior performers and, in turn, help you achieve your business objectives. Ask yourself:
14. How many employees have left your company over the past 12 months and why? Did they resign, retire or were they terminated?
15. Do you need to develop recruitment/promotional material in order to attract interest from individuals who have the skills, talents and behaviours you are seeking?
16. What is your company philosophy and culture around external hiring at various job levels? How do existing employees feel about external hires, especially at supervisory level?
17. What style of interviewing is best to help you identify the right candidate? Should you use panel, behavioral or situational interview techniques?
18. Are you aware of Human Rights legislation in your area and do your interview methods/questions comply?
19. Do your offer letters cover all your legal requirements such as confidentiality, employment agreements, labour relations practices, etc?
20. What can you learn from departing employees that could help you improve your business? Does someone conduct exit interviews with departing employees?
Training, Development and Learning
Your business may require specialized training. Most employees these days want to continually improve their skills so they can advance through the job market. How can you develop employee training, professional or personal development programs to achieve your business objective? Questions to ask yourself:
21. What essential training or certification do your employees require and how will you ensure they receive that training?
22. What new skills and knowledge do your employees need to develop in order for the company to maintain a competitive advantage?
23. How much funding can your company allocate for training?
24. Can you generate revenue, and offset your own training budget, by providing specialized training to other organizations?
25. How will you decide which employees will receive additional training?
26. What opportunities to move up within your company will employees have as result of upgrading their training/education?
If you can identify the ideal performance behaviours for each job level, you will want to motivate employees to achieve that ideal. How can you use performance assessment and rewards to help you achieve your business objective? Ask yourself:
27. What is your company budget for performance rewards programs?
28. Have you identified desired behaviours and performance targets for each job?
29. How can you use a performance program to promote the most desirable behaviours and performance levels?
30. How often will you assess employee performance: annually, semi-annually, quarterly? Why?
31. What style of performance management best fits your company? Detailed written assessment, check list format, verbal assessment, etc.?
32. What rewards programs would you like as part of your company culture? Long Service Awards? Retirement Events? Etc.
33. What information do you need to capture in order for performance trends and measurements to be assessed?
Developing and maintaining good relations with your employees is a major step to creating a work environment where maximum performance is possible. There are also considerable risks and costs associated with poor employee relations. You will want to develop effective employee relationships that enable your company to achieve its business objectives. Questions to ask:
34. What skills, knowledge or talent do you need in this area in order to protect your company from all forms of employee/client liability?
35. What can you do to get employees and clients to tell you when they're unhappy so you can prevent problems from erupting? What programs can you implement to solicit feedback? Suggestion boxes, employee or client surveys/audits, etc.?
36. Are you aware of all federal, provincial and local regulations related to your business? Have you met and documented all requirements such as work permits, workplace safety committees, compensation labour requirements, etc.?
37. Have you developed a confidential 'chain of communication' for employees who wish to discuss a work related problem? Or, do they have to escalate even small issues to an external resource for remedy?
38. Do you have human resources policies, procedures and/or guiding principles in place that protect both the company and employees while promoting business success? Are they formally documented? How often are they reviewed?
39. Who has access to employee files or personnel information? Who should have access and to what level?
40. How can you develop company values that reduce the chances of union intervention?
As a business leader, whether in a small business or within a larger organization, you are responsible for achieving your business objectives. Employees are a critical component in your success. If you want to succeed in business, over the long-term, in a sustainable fashion, you need to create a work environment where employees choose to support your success because they win when you win.
Asking yourself these 40 questions is the first step in making sure your HR practices are focused on improving bottom line results. Your HR advisor or consultant should be able to help you develop the answers to these questions. A list of HR resources can be found in our links section.
