Full-Service HR

HR Must-Dos for New Business Owners

Ella Baker
HR Must-Dos for New Business Owners
Reading time 6 Mins
Published on Jul 16
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Don’t let HR issues put your new company in danger

Congratulations! After years of planning and struggling, you’ve finally opened your own business. You may think that the hardest part is done, but without proper planning and policies in place to address human resources issues your new business could be in danger before you even get off the ground. This list of HR must-dos for your new business can help protect you and your employees.

Policies and procedures

With a small staff, it can be tempting to run your new business in a very informal manner. Sometimes taking a laid-back approach can be a strength, but it can also lead to confusion, inefficiency, and a host of potential HR issues. One way to codify your policies and procedures is to develop an employee handbook.

Before you make your first hire or while your staff if still small, take time to develop an employee handbook to clearly communicate and document your policies and procedures to your workers. Handbooks can vary in style and format, but some basic sections to include are:

  • Company Overview
  • Safety Policies
  • Diversity and Equality Statements
  • Pay and Benefits
  • Discipline and Termination
  • Legal Notices
  • Acknowledgement of Receipt

Your Sheakley PEO and Human Resources Outsourcing specialists can help you develop and implement policies and procedures that will help you and your employees get on the same page.

Recruiting, hiring, and termination

Human Resources laws begin regulating the employer-employee relationship before a new worker is even hired. Federal, state, and local laws prohibit employers from asking for protected information and all recruitment and hiring must be done with consideration to ADA compliance regulations.

Reviewing all applications carefully and planning interview questions in advance can help minimize the risk of asking for prohibited information. Even off-hand questions that lead to the divulging of information about marital status or age may get your company in to hot water. Knowing what questions you may and may not ask is not always easy. Working with the HR experts at Sheakley can help you navigate these treacherous roads more smoothly.

While Ohio is an at-will employment state, employers must still be aware of the issues that can come into play when terminating an employee. From proper wording of termination notices to severance practices to handling unemployment claims, termination is a delicate process that must be handled with care and delicacy to avoid potential litigation. You must develop a clear policy for employee discipline and apply it equally and carefully document all employee infractions. In the event of a termination, any letters of dismissal should be reviewed by an HR expert or HR attorney to help minimize the risk of lawsuits for unlawful termination, discriminatory termination practices, or other violations.

The US Equal Employment Opportunity Commission (EEOC) receiving 84,234 charges of workplace discrimination in 2017 with the average cost of an employee lawsuit standing at $250,000. Sheakley’s Human Resources Outsourcing experts will be able to help you navigate all of these potential pitfalls to reduce liability for your company and to help you attract and retain the right talent. Sheakley works with you and your managers to ensure adherence to proper employment practices that can ensure you avoid turnover and lawsuits.

Keep files in order

Another legally required step in the new hire process is the completion of necessary tax documents, like the I-9 and W-4. In addition to these, you’ll want to make sure that you keep all of your employee files in order to keep you covered in case of employee complaints or litigation. A little extra work upfront can help keep your employee affairs in order and ready for audits or whenever needed.

The I-9, or Employee Eligibility Verification Form, establishes that an employee is legally residing in the United States and therefore eligible to work in the country. The I-9 lays out specific documentation that the employer may ask for to determine eligibility; requesting other documents may subject your company to liability for discrimination or inappropriate hiring practices. Federal law states that all employers must report any new hires to their designated state agency within 20 days of the date of hire.

The W-4 helps your employee figure out their tax withholding amount. You don’t have to send this off anywhere, but hold on to it for at least four years. File your employee’s W-4 with their payroll information including direct deposit instructions, wage information, and other details used for payroll set up.

Be sure to keep a general file for all employees that includes emergency contact details, a copy of their employment contract and offer letter, and their permanent address for tax mailings. This is also the file where you can catalogue performance reviews to track your employee’s progress and contributions to the company over time. Performance reviews can provide the basis for promotions, raises, and terminations.

Additionally, the US Department of Labor requires all employers to have posters on wage requirements, job safety, and other employment-related policies in a publicly accessible area. Remote employees should be provided digital access to these, whether on your company intranet or via a link to an outside source.

Development and training

The success of your employees depends largely on the training and development they receive when you bring them onboard. Young companies often fall into the trap of operating under a sink or swim mentality that is detrimental to the success of your employees and your company. Set your employees up to grow and contribute to your new business by offering training and development that creates opportunities for success.

While you may know the ins and outs of every position in your company, you’ll want to develop formal orientation training plans for your future managers to use. These plans should include:

  • Introduction to the company
  • Customer overviews
  • In-depth job descriptions and duty lists
  • Expected behavior
  • Information and hands-on training of any tools and software employees will use.

HR and Sheakley

You need to focus on what you know best – running your business. Staying on top of legislative changes and updates to employment law that might affect your business can be a full-time job all by itself. Let Sheakley’s Professional Employer Organization (PEO) and Human Resources Outsourcing professionals show you how they can help you achieve your HR goals for your new business and stay compliant.

With in-depth knowledge of compliance issues, Sheakley’s PEO team can guide you through the complicated world of ACA, OSHA, FMLA, ADA and other federal, state, and local laws and regulations. Unlike a human resources advisor or consultant, the co-employment relationship between Sheakley and client companies gives Sheakley skin in the game when it comes to keeping you on top of HR issues.

Schedule your free consultation with a Sheakley HR expert today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join in the discussion by commenting below.


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