Lots of small companies think they may not have enough time or resource to invest in employment related issues, but good employment practices can help small companies to become a lot more profitable, effective and can lead to creating many more jobs.
People are the biggest asset a company can have so it is vital that plenty of time and effort is invested. Employing the wrong people can be costly and can lead to lost profitability:
- Far too many dismissals
- Inadequate staff training
- Poor supervision and management
- Unsuitable people recruited
- Low motivation and morale
Many of these problems can be resolved with a little time and resource. Generally smaller companies hold a number of advantages:
- They in a smaller company you can build up a close relationship
- Able to react very quickly
- Understanding the employees problems this is result of one-one meetings
Good employment practices can help:
- Small companies – Can react and tackle employment issues early as sometime a problem can be foreseen
- Employees – Have a good understanding where they stand, what can they do, and what they can expect from their employer
Avoid bad recruitment?
There are a few simple steps that can be undertaken to avoid any problems occurring. But a company should first ask whether there is a need to recruit or can existing employees trained to take on the extra tasks. If you have to employ more staff then can a part time worker. When creating a vacancy have clear idea of the job, this will contain the main purpose and have person specification on there as well.
Should contracts be in writing?
An employment contract does not have to be in writing to make it legal and valid, a verbal agreement is can be just a sufficient. Having the terms and conditions in writing can reduce any dispute further down the line. Employers are expected to provide new employees with a written statement highlighting their terms and conditions within two months of their start date.
Why should there be rules and procedures in place?
Rules benefit both employees and employers. They make it clear what is acceptable from both the employee and the employer side. They will also indicate what will happen if the rules are broken.