Figuring that they can’t afford to hire full-time human resources (HR) specialists and thinking that outsourcing this function is more pain than its worth, many SMEs deal with HR management by ignoring it as best as they can. But small businesses owners that want get to the best possible results from the people they hire must take HR seriously.
If you manage them well, your people can be your biggest asset. But if you don’t follow labour regulations and procedures to the letter and fail to unlock your employees’ potential, they can quickly become a drain on the health and profitability of your business.
Here are five steps to healthier HR for small businesses:
Draw up employment contracts and workplace policies
You need to put in place a company policy that covers your basic terms and conditions of employment, including leave, working hours, remuneration and rewards, workplace conduct and a disciplinary code.
Encode this policy in an employment contract signed by you and your employee. Ensure that your employment contracts and policies are aligned with South African labour law by consulting the Department of Labour for free advice or paying a professional to draw up proper documentation.
Enforce your policies firmly and fairly
Once you have drawn up your policies, enforce them fairly and consistently. Don’t let small breaches of your policy slide unless you want set precedents for poor workplace discipline – if someone is late for work without permission, reprimand them the first time.
The same rules should apply to all employees and they should be enforced without favouritism or exception as far as possible. If you do need to make exceptions to a workplace rule or policy, explain why.
Though performance management at an SME does not necessarily need to be as formal as at a large organisation, do take the time every six months or so to discuss workplace performance with each employee.
Discuss your requirements, help them set goals, evaluate performance and examine opportunities for training and development. And align bonuses and increases with performance so that employees will regard these as a reward rather than a standard entitlement.
Put a disciplinary code in place
You might require professional help in setting a clear disciplinary code for when employees are in breach of your policies. It’s important to consider the guidelines set out in South African labour law when disciplining an employee and to thoroughly document the procedures you follow in case you end up in a hearing at the Commission for Conciliation, Mediation and Arbitration (CCMA).
Be fair and reasonable – you can’t fire someone the first time you suspect they’ve called in sick because they’re off to watch the cricket.
Take the wellbeing of your employees seriously
Healthy, happy and financially secure employees are likely to be more productive. So try to ensure everyone has some basic medical cover, offer them retirement funds, and even consider income loss cover.
Related: Free SWOT Analysis Template
Remember that your employees are people with families, financial problems and bad days. You don’t need to shoulder all their personal problems, but you do have a responsibility to treat them with fairness and empathy.
You probably did not start your business to deal with the woes of managing people but to reach your goals you need other people to take care of day-today business while you grow your passion.
Managing your employees’ expectations, performance and actions are important to get the best possible results and at all times you need to operate within the boundaries of the law.
Failing to follow the right procedures will get you in as much trouble with the CCMA as outright exploitation of your workers. It’s a good idea to understand your rights and responsibilities so that you can enjoy harmonious and productive relationships with the people you employ.
5 Things To Do When An Employee’s Performance Deteriorates
It can be confusing and frustrating when a successful employee’s performance takes a nosedive. Intervene effectively using these five steps.
For all kinds of reasons, even longstanding, highly productive employees can experience a performance slump at some point. The Towers Watson Global Workforce study showed that up to 26 percent of workers surveyed said they felt disengaged, and another 17 percent felt detached.
As a founder, you may not always find an obvious way to get someone back on track, but the investment of energy you would need to turn this situation around is still so much less than what would be needed replace and train a new employee.
So, the upshot is that it only makes sense to figure out what’s going on and take action. Ready? These five approaches may help.
1. Ask explicitly if the employee is okay
And find out if there’s anything that you should know about instead of assuming you understand this individual’s current circumstances and reactions. Of course, it will help if you’re already aware of his or her personal situation.
Perhaps the employee is dealing with a new and challenging circumstance that’s distracting. In that case, it can help to share your evidence: “James, I was wondering if everything’s okay. I noticed that you stopped/started doing X, and I figured I’d better check in with you about it.”
At one of my clients’ companies, when a leader touched base with a staffer who had fallen below expectations, the woman explained that her dog had died, and she was grieving. Knowing her boss cared about her helped her refocus on her work.
2. Look for signs of stress and burnout
Burnout costs U.S. businesses as much as $300 billion each year, whether the reason is employees having had to absorb too many changes or the fact that they’ve just been plain old working too hard for too long.
A longtime administrator I knew was being criticised for her negativity, her self-pacing and her avoidance of anything new. After some analysis, however, it became clear that there was more work than her team could handle. Once her team was staffed up and the new team members were reasonably up to speed, she started to recover her resilience and became more even-keeled.
3. Probe for changes in the employee’s job
Perhaps there are new problems with equipment, resources or information flows; maybe a major customer is giving the employee a hard time, or a manager is behaving differently in some way.
A CEO I work with was concerned about a downturn in an executive’s previously outstanding performance. We discussed how the employee had recently been assigned to lead a new initiative for which he did not have previous experience, although he was the best internal candidate. The CEO agreed that as soon as the new initiative could afford to pay for an experienced executive, the reassigned employee should return to the assignment where his performance had been consistently superior.
4. Describe your expectations for the employee’s performance
And talk about how the business, team or customers are affected when it’s lacking. Although up to 87 percent of employees in one survey reported by Strategy + Business said they wanted opportunities for development, only one-third reported actually receiving feedback to help them improve.
So, make sure you’re concrete and specific about both expectations and impacts. Ask what employees need from you or from others in the organisation to help them get back on track.
I had to give one senior leader excruciatingly detailed feedback, in areas from interpersonal dynamics to personal hygiene. It wasn’t pleasant for either of us, but until he was made aware of exactly what was disturbing to customers, there was no hope for improvement.
5. Provide meaningful recognition
Employees in a survey by the Cicero Group were three times more likely to choose recognition as the single factor most likely to motivate superior performance– over inspiration, autonomy and even pay.
Recognition doesn’t have to be expensive or even time-consuming. One leader I knew started using the daily standup meeting not just to review the progress of the work, but also to mention superior contributions and excellent performances. Not only did preparation for the daily meetings improve, but team members were eager to make contributions that could be noted.
In sum, even excellent performers can lose momentum or be stalled by circumstances from time to time. How to respond as the employer? Intervening early will help you feel optimistic about a positive outcome and give the employee involved the benefit of the doubt so you can demonstrate to staff the confidence you have in them and your willingness to provide support during a tough time.
Just don’t wait to do this: If you wait till you’re fed up with either the person or whatever’s going wrong, you’ll find it much harder to turn the situation around.
This article was originally posted here on Entrepreneur.com.
Managing Multicultural Teams
In this article we answer some key questions around managing multicultural teams.
Companies that have greater gender and cultural diversity, particularly at senior management level, have consistently reported higher than industry profitability – as shown in McKinsey’s latest ‘Delivering through Diversity’ report. The statistics gleaned from the report show that companies in the top 25th percentile for gender diversity on their executive teams are 21% more likely to yield above-average profits. Furthermore, executive teams that are more culturally and ethnically diverse are 43% more likely to report more favourable bottom line figures.
Whilst the findings do not directly confirm the correlation, that increased diversity results in increased profitability, it is hard to ignore the consistency comparing outperforming industry rivals. The benefits of diversity are strongly suggestive, however, managing the challenges of diversity in the workplace can be challenging. It requires leaders with high emotional intelligence (EQ) that focuses on open communication and building an inclusive culture.
In this article we answer some key questions around managing multicultural teams, including:
- What are some of the challenges of workplace diversity?
- 5 essentials to managing multicultural teams
- What is the future of cross-cultural training?
1. What are some of the challenges of workplace diversity?
For a start there is not enough diversity in the workplace. Statistics suggest that we do not have enough representation of women and, in particular, people of colour in senior management positions and even less at board level. The dearth of women and cultural diversity is a global problem and not just a South African one.
To address diversity organisations need to:
- Make a compelling case for diversity.
- Invest more in employee training.
- Expose all staff to diversity and inclusion workshops.
- Ensure that hiring, promotions, and reviews are fair.
- Give employees the flexibility to fit work into their lives.
- Focus on accountability and results. (McKinsey report, 2017)
2. Five essential to manage multicultural teams:
It is important to understand that culture is fluid. It is also common to find people identifying with more than one culture. This means that we need to be careful about making the error of cultural stereotyping. There are as much differences within cultural groups as there are between groups.
So the way to manage multicultural teams, I believe, should be no different to managing any team. If we want great teams then managers need to have the following attributes;
- High EQ
- Awareness of self (ability to self-regulate)
- Awareness of others (Skilled at relationship management)
- Be skilled communicator
- Be inspirational
- Be courageous
- Understand diversity (in all its forms)
Here are five ways to get the most out of a multicultural team:
Clearly communicate the “Why” (Simon Sinek)
It is important for leaders to clearly communicate the organisation’s vision and to ensure that the message cascades throughout the organisation. Organisations where staff are clear about their purpose and know what is expected of them, show less entropy (time spent on non-revenue generating activities). Staff also report higher job satisfaction when their purpose is clear.
Create an inclusive culture
Leaders need to create a space that allow everyone a seat at the proverbial table. Staff need to feel they have a voice and that their opinions matter.
Create a psychologically safe workplace
Employees need to feel safe to express their opinion without fear or favour. It is the manager’s responsibility to ensure that the right culture (the way things are done daily) is in place and that candid conversations are encouraged.
Allow employees to bring their ‘whole-selves’ to work
It is important for managers to get to know their employees. Managers need to make time to enquire about their lives outside of the workplace.
Create a culture of accountability
All employees need to understand the role they play in the long-term sustainability of the organisation. Employees who need support should be encouraged to ask for help timeously as their contribution impacts the whole organisation. This understanding of the individual contribution to the collective outcome should also encourage staff to support each other and discourage the creation of silos in the workplace.
3. What is the future of cross-cultural training?
The global trend is towards the need for greater cross-cultural awareness. In South Africa particularly, we are becoming increasingly aware of the legacies of our political history that continues to negatively impact the world of work.
Cross-cultural training or diversity and inclusion needs to intensify – for that we need our industry leaders to be courageous and know that increasing diversity not only makes good business sense, but that it’s the right thing to do.
For more information on online courses that help with managing multicultural teams, visit USB-ED.com.
From Employee Engagement To Empowerment
Engaged employees will go the extra mile to resolve a client’s problem or close a sale, they contribute to a culture that consistently delivers great service and they drive company growth. Here’s why.
“Engaged employees are more innovative and take the success of the company personally.”
Employee engagement is defined as an active state related to productivity and innovation. Engaged employees can be described as being fully immersed in and enthusiastic about their work. This emotional attachment means that employees will go above and beyond the call of duty. Employee engagement differs from employee satisfaction. Satisfaction can be described as being happy at work. Engagement takes employees to another level.
Engaged employees will go the extra mile to resolve a client’s problem or close a sale, they contribute to a culture that consistently delivers great service. Engaged employees take ownership, deliver on their commitments in and outside the organisation and are passionate about satisfying the customer because they own the result of their work.
Simply put, engaged employees are a prerequisite for building high performance teams within an organisation.
A recent Gallup survey on the State of the Global Workplace shows that a way to significantly increase productivity is to unleash employees’ potential by allowing individuals to identify, develop and use their natural talents so they become strengths. Employees who use their strengths on the job are more likely to be intrinsically motivated, and teams who know each other’s strengths relate more effectively to each other, boosting group cohesion.
The survey also shows that making better use of employees’ strengths requires businesses to grant workers greater autonomy to use their strengths, which requires a profound management shift in which more personalised relationships and positioning team members for maximum impact occurs.
The resulting sense of empowerment, however, benefits both the employees and the organisation. Higher levels of autonomy also promote the development and implementation of new ideas, as employees feel empowered to pursue entrepreneurial goals that benefit the organisation — that is, to be ‘intrapreneurs’.
In addition, talented managers are critical players in implementing a performance- orientated, engagement-based and strength-focused culture and aligning the leadership and employee values. This individualised approach helps great managers account for generational differences in employee expectations, in particular Millennial employees that prefer a higher level of flexibility.
Amongst the top performing companies, in any survey, 60% to 70% of employees are engaged at work. This is a clear financial incentive for leaders to take employee engagement and empowerment seriously. Engaged employees are more innovative and take the success of the company personally.
Focusing on engagement
There are a number of additional activities to help leaders succeed in employee engagement. These include: Strong visible values in the organisation, understanding and addressing employee expectations, career pathing with tailored development programmes to help employees achieve their goals, great communication tools and internal social collaboration for peer-to-peer learning and collaboration, knowledge transfer and helping the company expand the use of best practices, along with a great reward and recognition programme.
The African continent, in particular, offers companies and employees more opportunities to be involved in community improvement projects and company-wide CSI programmes, which also increases the feel-good factor in the organisation and ultimately contributes towards an increase in employee engagement.
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