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« Can I Maintain Personnel Files Electronically and Destroy the Originals? | Main | Keys to protecting your business, part 2 »

October 01, 2007

Keys to protecting your business Part 1

Job descriptions and employee handbooks are human resources elements.

Special to the Register

As a human resources professional helping small businesses, I am often asked, "How can I protect my business from the maze of federal and state employment regulations?" There are a few key elements that every business should have in place, no matter what size you are.

Today I will identify two key elements that you can implement to protect yourself and your business. In addition to providing protection, they also go a long way in improving your status as a "preferred" employer and communicating with your employees. Next week I'll talk about training your supervisors and finding the right clinic.

Article Submitted By: Attorney Shannon M. Jenkins

Job descriptions: The primary objective of a job description is to communicate to employees and supervisors important details of a job in order to avoid future problems. A job description should be used throughout the employment process – from pre-hire through termination. The job description helps employees understand their responsibilities and how their work contributes to the overall mission of the business. It should include the essential functions of the job (duties and responsibilities), the job requirements (experience, education, skills, abilities), and the physical demands.

A well written job description will protect you in your hiring decisions, assuming you hire based on the job requirements. You are more likely to hire the right person if both you and the employee clearly understand the job. It identifies to the employee what the expectations are and becomes a tool with which to review and assess the employee's performance. Employees are eager to know what is expected of them and how they can improve. It also helps you recognize a job well done or a need for retraining or discipline.

If the employee become injured on the job, the job description is critical to assisting a doctor in determining when to return the employee to work and any restrictions to impose. Doctors tend to be more conservative about returning an employee to work if they do not understand the employee's job requirements or physical demands of the job.

Lastly, a well-written job description will provide you a defense. In the unfortunate event that you must terminate an employee for poor performance, the job description gives you a basis for defending your decision.

Employee handbook: Small business owners often ask, "How many employees should I have before providing an Employee Handbook?" Your employment liabilities start when you hire your first employee. At the very least, you should have your policies in written form and signed for by the employee, such as at-will employment, hours of work and attendance, holidays, vacations, sick leave if any, payroll deductions and paydays. In the absence of written policies, past and present activities become policy. Since many of these practices can be discriminatory (because of a lack of consistency), the company is in greater danger of lawsuits and claims than if they had carefully spelled out the company's expectations of their employees.

What a handbook can do for you? It provides protection. In today's litigious environment, you have to be prepared for the worst. If your policies are well documented in a handbook, you will be in a stronger position to defend your company. Your handbook is one of the most vital communication tools between a company and its employees. It also mitigates misunderstandings or misstatements that can create legal liabilities for your business.

A handbook provides you and your workforce a playbook. Can you really expect your employees to play by the rules if you don't tell them what they are? A comprehensive employee handbook ensures that everyone knows the rules of the game before they head onto the field.

The process of creating a handbook helps employers improve their own leadership. In developing your handbook, you must first think through which policies are useful and practical in your business. A word of caution: When it comes to employee handbooks, one size does not fit all.

Think twice before making a few changes to a "borrowed" handbook and calling it your own. Keep in mind that you do not know who originally wrote it and if it is in compliance with current laws and regulations for the state you operate in. The same is true for downloading handbooks from the Internet. The actual policies in a handbook vary from company to company, depending on its size, industry, number of employees and benefits offered. It's extremely important to have your handbook reviewed by legal counsel or HR professional periodically to make sure it complies with applicable laws.

The employee handbook should be one of the first formal communications you have with employees after they are hired. You want to protect your investment by making sure the first impression is a good one.

Similarly, in the event of a dispute or poor performance review, this will be the first place that the employee turns. An employee handbook can – and should – be a positive tool for encouraging growth, improving morale and aligning employee behavior with company policies.

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