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Hitting the Magic 50 Employee Mark Part 3 – Performance Management, Compensation/Benefits, and Human Resources Staffing

May 8, 2012 by Kim Kimbell
 
Kim Kimbell

Over the past several weeks I have been sharing a series covering the changes to make and the things to consider when your company grows to 50 Employee. This is the third in the series. I welcome your comments and questions if there is anything you hoped I would cover that I have not.

Read Part 1 – Hitting the Magic 50 Employee Mark Part 1 – What You Need To Think About?

Read Part 2 – Hitting the Magic 50 Employee Mark Part 2 – More Formal, More Frequent Communications.

Performance Management & Goal Setting

Companies who have not yet instituted a formal performance management system are likely to set this as an important goal once they hit fifty employees. In the past goal setting may have occurred quite successfully on the back of a napkin while chatting around the lunch table with everyone. However, at 50 employees this strategy becomes ineffective. There are likely at least three reporting layers by this time – senior management, management/supervisory and individual contributors. The goal setting system, by necessity, must get more formal so that everyone is on the same page and supporting the same goals. The same goes with performance feedback. Employees deserve feedback and the more employees there are the more helpful feedback is to keep everyone motivated and moving in the same direction.

Compensation/Benefits/Records

At fifty employees you will see changes in health plan offerings as fifty member groups is often a differentiation point for plan offerings and pricing. Incentive plans tailored to different levels or job classes tend to be implemented around this time. Formal salary analyses are occurring more regularly. Where the company previously had one engineer they may now have three or more. Internal as well as external salary equity comes in to play now. At fifty employees, companies who do not already have a formal recordkeeping system will want to begin investigating their options. It becomes very difficult to track employee changes on an excel spreadsheet. Most payroll services offer a human resources module and there are many cost effective HRIS (human resource information systems) on the market for smaller employers.

Human Resources Staffing

As you have read through this blog, you may already have come to the conclusion that many, if not most, companies that hit the 50 employee mark begin considering the addition of a Human Resource professional to help with the challenges of reaching this exciting benchmark. For some companies it takes the form of hiring an internal part or full time Human Resources professional. For others it means contracting with an external provider to provide project expertise or mentoring for an internal staff member.

What Does Your Employee Handbook (or lack of) Say About Your Company?

April 27, 2012 by Jennifer Olsen
 
Jennifer Olsen

Valve, a Seattle area gaming software company recently released their employee handbook and it’s getting quite a bit of press. As I read through it, I was reminded of just how influential and helpful an employee handbook can be for both employees and employers.

A well-written handbook shares important information about the company, helps new employees hit the ground running, continues to answer questions that arise during employees’ engagement with the company and exudes the company’s culture. What we can tell about Valve from their handbook is that they value empowering their employees by offering a clearly defined and shared vision so employees all know that they are working diligently toward the same goal. The fact that the company decided to share their employee handbook for all to see also says to me that they value transparency. You can check out Valve’s employee handbook here for ideas and inspiration.

While most companies understand the advantages of creating a handbook, it is often seen as a daunting process that requires too much time. There are several reasons why we advocate that our clients make time for creating a handbook, regardless of what your culture entails. Having an employee handbook:

  1. Saves you time – Managers usually receive the same questions from multiple employees. If they are answered in an employee handbook, employees have one place to direct them rather than taking up valuable time. Also, you ensure that all employees are receiving consistent information.
  2. Helps protect the company in the event an employee files a lawsuit – verbal policies do not hold up in court but written ones do. Also, written policies hold more authority.
  3. Creates loyalty – if you expressly share with employees how you plan to partner with them, they are more likely to feel valued and remain more focused on the tasks at hand.

When Resourceful HR is hired to provide HR support we often recommend starting with an HR audit to ensure your programs and processes are legally compliant and gaining you the greatest return. One of the first questions we ask is, do you have an employee handbook in place that reflects your culture and is well utilized? Do employees know where to get information if an employee handbook doesn’t exist?
Get started today!

Further recommended reading from our blog:
When is the best time to introduce an employee handbook?
What Should My Employee Handbook Cover?

Hitting the Magic 50 Employee Mark Part 2 – More Formal, More Frequent Communications

April 24, 2012 by Kim Kimbell
 
Kim Kimbell

In my most recent blog, Hitting the Magic 50 Employee Mark – What do You Need to Think About? – Part 1, I go over some of the Employment Laws that come into play at the 50 Employee mark. In this blog I focus more on communication with employees.

An extremely common remark made by employers once they hit the 50-employee mark is “I don’t know everybody by name any more”. Communications, always a critical component of success, is increasingly important the bigger a company becomes. The more people, the more room for misunderstandings, the more room for not getting word around to everyone and the more important direct communications become. The 50 employee mark is the time that the following should be instituted if not already in place:

Handbook, handbook, handbook

If your company has hit the 50-employee mark and you still do not have an Employee Handbook, it is now even more important that one be written and distributed. An Employee Handbook is important as a means to protect your company against litigation, provide employees with a succinct and comprehensive resource to clarify the expectations your company has of them and their conduct in their workplace, and market the benefits and services they receive as a member of your workplace. By the 50-employee mark, the employee handbook should cover, at a minimum, policy statements for standards of conduct, discrimination, harassment and retaliation in the workplace, workplace violence, safety, technology use and security, and confidential and proprietary information, equal opportunity, employment at will, reasonable accommodations, internal complaint process and timekeeping/overtime requirements. In addition, most companies of this size have instituted paid time off benefits such as vacation, sick and holiday. Lastly there must be verbiage covering the FMLA and other federal and/or state required leaves such as military, jury duty, voluntary emergency rescue and voting. If your company has multi-state operations or is international, your employee handbook contents may include state or country specific employment law verbiage.

Company Meetings

Gone are the days of yelling out across the company “come to the break room – we’re going to meet”. With 50 people it is now time to institute some type of pre-scheduled all-staff meetings so that employees are able to attend. How often a company meets depends upon their unique culture. At minimum, a company with 50 employees should be meeting quarterly as a group.

Newsletters/Photo Boards/Venues for informal communications

More people equals more activity equals more information. It also means not being able to get around and see everyone every day and keep up with who is who. Now may be the time for your company to create some type of communication where the activities, special mentions, status updates, and new employee introductions can be consolidated and more efficiently communicated on a regular basis. A newsletter need not be fancy or complicated – a once a month email can serve the same purpose. It may also be the time to institute a photo board with everyone’s picture and name posted.

By this size, most CEO’s are no longer involved in the day-to-day aspects of the business but are spending their time at the strategic level. This translates into less time in the office and less time interacting with all levels of employees. It is CRITICAL to recognize this and to create venues for your CEO and other officers to have an opportunity for connecting with the employee population. For instance, I always start by getting a once monthly roundtable lunch on the CEO’s schedule and inviting around eight employees at random to attend. This gives the CEO and employees an informal venue to interact in a small group that encourages two way feedback.

The bigger the company grows, the more important it is to create venues that connect people across the organization. This can be as simple as doughnuts in the break room every Friday at 10:00. The CEO of one company I worked at instituted a “Safari” concept where employees were encouraged to take someone else in the company who they did not know well out to lunch (on a safari). The participants would then submit a slip containing an interesting fact they learned about one another. At the monthly staff meeting the slips were placed in a drawing and several were drawn, the facts were read and the submitters received fun prizes.