7 Employee Management Tips For Small Businesses

7 Employee Management Tips For Small Businesses

Many start their business journey as solopreneurs, some with a handful of employees. But as their business grows, so will the headcount of employees and that’s when some employee management tips come in handy. From there on, employee management starts to become more and more critical.

As much as they want to keep their customers satisfied, they also have to satisfy their employees. This article aims to give small business owners some of the handiest tips on managing employees and avoiding attrition. But first, let us understand the top benefits of effective employee management – 

  • It helps secure and retain top talent
  • It boosts overall efficiency and profitability 
  • It lowers attrition rates 
  • It helps maintain a healthy company culture 

7 Successful Employee Management Tips

Here are some useful tips for managing employees in a small business successfully – 

Always Keep Recruiting

Many small businesses see recruiting as only needed when an employee leaves or when a new job position opens up. However, these should not be the only times when you are keeping an eye out for top talent.

You should do this indefinitely because you never know when they might be needed (instantly sometime) to take on the role when a job role is open. 

Create, Share, Collaborate

Work with your team in real-time. create documents together and share the same on Whatsapp, Gmail, etc.

Interview Them Right

A lot of employees complain about other toxic employees. The best way to stop this from happening is to prevent such toxic people right at the doorstep of your business.

During the interview, dig deeper and ask them questions that reveal minute details about them as a person. Ask them questions like – 

Make Onboarding Smooth

This is where new recruits get the first taste of your small business. A lousy onboarding process will lead to a lack of trust and confusion. Take the time to build a strategic, smooth onboarding process (for them and you) and easy to repeat.

The best onboarding includes on-the-job training with a colleague. Since you want employees who will abide by your business’s rules and advocate for your business, a smooth onboarding program sets the right tone for all new hires. 

Streamline Payroll Management

Regardless of what is going on with your business, you have to comply with your state’/country’s laws and pay your employees accurately and on time. Not a rupee should be missing from the agreed-upon pay.

But since you have employees from different classifications and with various benefits, this can be a challenge. Use a centralized system to manage your payrolls and other related responsibilities. Popular examples include GreytHR, RazorpayX Payroll, Zoho Payroll, etc.

Keep Track of Time and Tasks 

The time employees spend at the workplace should be properly tracked. It is vital that you – 

  • Bring transparency into work processes
  • Increase employee accountability
  • Understand their billing and operational efficiency
  • Understand where the need for human capital is the highest
  • Track how budgets are being spent

Large businesses can afford enterprise-level Employee Management Systems to do this. But for small and growing businesses, the best option is to use the “Time Tracker Register” template from Lio

To start using this template, select “Small Business” from Register Book’s home screen and then click on “Time Tracker (with name) Register.” Here’s what the template looks like – 

Another popular template you can use is the “Field Worker Register.” You can again find it under the “Small Business” section. Below is a screenshot of the same.

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Treat Them With Respect

Everybody, including you and your employees, are bound to make mistakes. When this happens, don’t treat them with disdain.

This will only make things worse for your business. Instead, have honest conversations with them and together work out a plan to fix the situation.

Such open communication and mutual respect help foster a culture of humility and appreciation, thus helping them flourish at the workplace.

Provide Mentoring

Lack of solid mentoring is one of the reasons why companies fail. As a business owner, you are in a position of power, and your employees will naturally look up to you for leadership and knowledge.

Meeting this expectation and mentoring them properly by sharing your vision for the business with them and guiding them with problem-solving is critical.

As a small business with a flatter hierarchy, you can give this hands-on training, and those employees can share what they learned from you with their colleagues.

Also Read- Mobile CRM: Dictating the Business of Tomorrow

How To Make Employees Want To Stay?

People change their employers when they feel something is not working out for them. It could be low pay, office politics, or even a lack of challenges. The following are some actions you can take to make sure employees stay with you.

  • Encourage open communication between team leaders and their subordinates. Schedule periodic one-on-one meetings with employees, give them honest, constructive feedback, and highlight how critical they are to your business. During these meetings, ask them to share what they dislike about their jobs and their suggestions to improve. Make it a priority to implement their recommendations if they are feasible. 
  • Be flexible so much that employees don’t feel their job is interfering with their personal commitments. Please give them the option to choose their work timing as long as they meet their responsibilities. If possible, encourage them to work remotely as it saves them the trouble of commuting. 
  • Encourage employees to improve their skills by sponsoring certifications and workshops. You can also transfer employees from one department to another one that they are interested in. 
  • Make sure employees are included in plans for the future of the business. Although not all of their viewpoints can be implemented, merely having them in the discussion can boost morale. 

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There is a famous saying by Richard Branson that goes like this – “Take care of your employees first, and they will take care of your business.” This is arguably one of the simplest and the most truthful lines making rounds in the business world.

Small businesses that have taken this to the heart are flourishing with a high-performing workforce and a slim to no attrition rate. If you want the same for your business, try some of the above tips. 

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  • I was having a problem retaining my employees. Will try these tips. let’s see if it helps.

    • Hello Sachin,

      Please give these tips a try.
      This will undoubtedly be of use to you.
      Also, we’d love to hear about your experience, so please share.

  • “Many small businesses see recruiting as only needed when an employee leaves or when a new job position opens up. However, these should not be the only times when you are keeping an eye out for top talent.”I was drawn to these words. I never considered things in this manner when starting a small business. Thanks for the advice.

    • Hello Raghavendra,

      The kind words are greatly appreciated.
      I’m delighted you found this information useful.

  • Everyone talks about everything, but you’ve added the most important topic—how to keep staff on board—which nobody ever tells people. I greatly appreciate your commitment.

    • Hello Roopesh,

      Thank you for your warm words.
      It means a lot to be able to share these.
      I’m appreciative you found the article enlightening.

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