Talent Management Challenges for Small Companies
Start-ups may experience a number of growing pains as they begin their ambitious ventures, and eventually develop into successful businesses. Below are some of the common mistakes to look out for if you are starting, or current running a small company.
Hiring Right the First Time
Making sure you hire the right person in the first place will save your company money, and, more importantly, time. If someone is placed in an ill-fitting job, they may make mistakes that will cost your company time to fix, and possibly damage relationships with your clients. Having a poor job fit leads to a bad representation of your company, and your employee’s lack of skill will not go unnoticed. In addition to the risk of a bad hire acting unprofessional, there is also the danger of him or her hindering the productivity of your other employees. Be sure to hire right the first time by implementing assessment tests to determine both the business ethics and professional skills that your candidates possess.
Determining Proper Salary
Knowing what to pay a person can make or break a company that’s just starting up. If you pay your employees more than you can afford, your company will collapse unto itself. But if you don’t offer enough incentive, your company won’t be attractive to highly skilled workers, and talented employees may overlook your company in favor of one that pays more. Do your research on the market and industry when determining how much to pay someone, and be attentive to what other companies are offering for similar positions.
Asking an Employee to Leave the Company
Knowing how to fire someone is more than just emotionally draining–there are legality issues surrounding it as well. For example, your employee may have had to receive a number of warnings before you’re able to fire them without repercussions. Make sure you have someone who understands HR law in your country before firing anyone.
Setting Realistic Expectations
Understanding the capacities of employees as a first-time business owner can be one of the biggest challenges you face. If you overwork your employees, or expect too much from them, you could alienate them. Employees could feel so pressured to do a large volume of work that they rush through their tasks and make hasty errors. On the other side of the coin, if you don’t set high enough goals, employees may become complacent and end up wasting time. Strive for a balance between the two extremes, observe your employees and how they work to determine what a realistic expectation for output is in your company.
Finally, realize that the best talent management comes from years of experience, listening to your employees, and being flexible and creative with your solutions. Want some help managing your human capital? Contact us for employee solutions.
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