Your staff are your most valuable resource. As a result, you need to know the key issues for human resources. There's no doubt about it - finding good staff is one of the most difficult things you will ever have to do in business. Even harder, it seems, is attracting and retaining the right staff. Here we take a look at what it means to be an employer, what your duties and obligations to employees are and, importantly, look at your rights as an employer. But don't worry, it's not just a one way street, as employees, too, have numerous duties and obligations in respect of their employers, and these are covered at relevant points throughout this article.

Even one employee is a big investment for businesses of any size. While the employees may need a job, it takes more than just a regular wage to keep your staff happy. Suitable induction into the business, ongoing training, performance reviews and constantly monitoring staff morale are all factors that contribute towards the job satisfaction of employees. And don't be fooled into thinking that all employees care about is how much they get paid - over the last few years, job satisfaction has been creeping higher and higher towards being number one on employees' "most wanted" lists.

 Overview of employer obligations and legal duties

Managing employees is a key area of risk for employers because of the many regulations you're required to comply with. An employer's responsibilities include the need to:

·         consider taxation responsibilities (relating to group tax, payroll tax and fringe benefits tax)

·         determine whether an award, industrial agreement or enterprise agreement applies to your employees

·         have insurance against workers' compensation claims

·         provide a prescribed minimum contributions of social security support for each employee (subject to limited exemptions)

·         provide a safe and healthy workplace

·         take steps to prevent discrimination against employees on a range of grounds, including race, sex and disability, and

·         terminate employment in a manner that is fair and complies with legislation related to termination procedures and paying employee entitlements.

Legal obligations of employers

As an employer, there are certain legal obligations you must comply with. These include:

·         To provide work.

·         To pay employees for work done. Check any industrial awards or agreements to find out if employees are covered. If they are, then you must pay them no less than the amount stipulated in the award or agreement.

·         Not to damage or destroy the relationship of trust and confidence with the employee without reasonable cause.

·         To ensure the safety of the employee when engaged in work for you.

 However, you are not required to:

·         make available character references, or

·         protect an employee's property brought to work.

Employee obligations

Although the employer's obligations to the employee are far more complex, employees, too, have obligations:

·         To work skilfully and competently.

·         To act faithfully and loyally.

·         To account to the employer for money and property received in the course of employment.

·         To inform the employer of inventions made in the course of employment.

·         To obey any lawful commands.

·         Not to act against the employer's interests.

·         To keep particular information confidential.

 New employees

When a person is engaged as an employee of a company, there are a number of steps an employer should take.

·         Prepare a written employment contract clearly setting out the terms and conditions of employment, eg hours of work, conditions and rates of pay. Both parties should sign and date the contract. One copy should be kept on file and a copy should be given to the employee.

·         Provide training and information on workplace health and safety to all new staff members. This may be general information or specific to particular hazards or industries. Records must be kept of all training and information provided.

·         Ensure other documentation relating to commencement of employment has been completed, eg NSSF coverage and evidence of qualifications.

·         Arrange an employee induction program.

 Induction and training

By now you have invested a lot of time and effort in finding the right person for your business. The next step - which ideally should be carried out on his/her first day - is to introduce him/her to his/her role and your business. This is called "induction". Induction basically means the introduction of new staff to their duties, their co-workers and the workplace.

At this stage all necessary legal records should be completed and staff informed of your occupational health and safety procedures and practices relating to your business. Topics to be covered include:

·         method of recording hours worked, eg in a general attendance book or clocking system

·         overtime

·         pay arrangements

·         dos and don'ts

·         occupational health and safety

·         parking/meals

·         clarification of duties

·         workplace/staff amenities

·         handling plant and equipment, and

·         meeting other employees.

Other points specific to your business: other locations ;other key staff contacts, and practices and procedures, e.g. closing and opening procedures, banking, administrative/record-keeping procedures.

 If you are you busy with the business to carry out the induction process yourself, appoint an induction "buddy" to each new employee. Induction buddies can be long-term staff members or staff skilled in the area where the new employee will be working.

Motivating staff

If you don't already know it, staff are by far the most valuable assets any business can have. Don't be under any illusions about your role as either an employer or manager of staff. Most bosses assume their position validates their management style and, unfortunately, they are never told otherwise. Just because you hire staff doesn't mean you will be a good manager. Few people have the skill set of natural leaders - the mix of good communication, motivation and delegation skills. It's ironic but, although delegation is the main reason to hire people, it is often the hardest part of staff management.

 Tip

Even if you have managed staff in the past, it's very likely your management skills could be improved, so consider taking a course. There are many short, cheap courses available at Enterprise Uganda, Business development centres, within universities and even through distance learning colleges. Consider joining a local business association or chamber of commerce - many will hold information evenings, business seminars or other courses at various times throughout the year.

 Best practice approaches

The best approach is to treat staff like the individuals they are. Share information, encourage their ideas, make them feel trusted, valued and guided. Train them. You might not be able to offer a career path but, wherever possible, give employees ownership of as much as they're capable of handling, and offer some potential for growth and increased responsibility, however small.

Challenges for the small business owner

Small business has some advantages and disadvantages for staff management. A small group of colleagues are more easily tuned in to each other and to the business. So, if they are well managed, they're more likely to maintain a productive work culture.

However, if there is a counterproductive management style in the business, you won't capitalize on this natural advantage. Because in small businesses the manager is likely to be the owner and boss, this double authority is less likely to be challenged. With smaller businesses, too, there are fewer people and opinions around, so sometimes the boss' approach is unlikely to be influenced by the ideas of others. Another drawback is that it is often hard for the small business owner to get feedback from employees who may be reluctant to get on the wrong side of the boss, so to speak.

 Owner/managers need to realise one management style is not enough to get the best out of people - in certain situations, it needs to be adjusted for different staff. A one-size-fits-all approach does not always get the best result.

Open lines of communication

Make sure staff know that you are open to their ideas but, if they have clear guidelines as to when is the best time to talk to you, all the better. Meetings are good for not only discussing day-to-day business, but for post-mortems and reviews, getting ideas and consensus on changes, and airing issues on the fringe of work and work practices. If any exceptions to a rule need to be made, get everyone to be part of the decision to avoid resentment.

Listening and talking are only part of it - a manager has to reinforce and deliver on changes, decisions, guidelines and rewards.

 Employee wants and needs

Generally, the wants and needs of employees are simple. They need to:

·         be rewarded well for a job well done

·         feel involved in the business

·         feel that their contribution is valued, and

·         work on tasks which are interesting and/or fulfil their potential.

 Improve your staff management skills by:

·         relating to employees as people, not just hired help

·         adjusting your management style as needed to suit individuals

·         trusting employees and learning to "let go" and delegate (after all, this is why you hired staff in the first place!)

·         being clear in communicating expectations, priorities and limitations

 ·         stating clearly your management style to employees so they understand your approach

·         making sure that your staff are willing and able to perform what you are expecting of them, especially during busy periods and tight deadlines

·         setting up well understood communication channels, including regular group meetings, and generally ensuring that your ear is accessible but not "on tap", and

·         encouraging feedback and discussion of ideas and of people's work styles (performance reviews)

 Problem solving

As a manager, it is your role to make sure the hard-nosed topics which people might avoid discussing come up at meetings, e.g. staff conflict or resentment. When you are problem solving, make sure that you maintain consistency when applying ideas, rules and standards.

Remember, good managers manage people not problems - so don't view people as a problem. Instead, look for all the factors contributing to a bad situation and try to come up with a solution. Here are some tips:

·         When problem solving, get staff to come to you with three solutions and decide on the best. That way they're involved and not passing the buck to you.

·         A suggestion box is a good visual reminder that all ideas are welcome. Where particular problems are to be solved, you could offer an incentive, e.g. a free bottle of wine for coming up with the name of a new product.

·         Listen between the lines - there is often more going on than is being said. Is the staff member really unhappy with their changed roster or do they have a problem with a co-worker on their shift?

 Here are a few sure-fire ways to keep your staff happy:

 1.      Find out what motivates people and use this knowledge.

2.      Try to encourage fun in the workplace - a standing invitation to a simple afternoon tea or sports break can do wonders.

3.      Credit your employees whenever it's appropriate - always praise a job well done.

4.      Always give your employees feedback on their work and its reception by clients or customers.

5.      Make it a rule never to reprimand an employee in public, in front of their colleagues, clients or customers.

6.      Look for opportunities to acknowledge staff in a way they appreciate. While some staff want public acknowledgment, others want more responsibility, others like bonuses of restaurant vouchers or movie tickets. Everybody likes cash!

7.      Review salary on an annual basis and discuss with your staff the performance review process. Consider a bonus for exceptional performance, for meeting tight deadlines or working overtime.

Training employees

It doesn't matter how much time and money you spend on selecting an employee - unless selection is backed up with proper training, that money can be wasted. Training is a means of equipping employees to perform competently in their present or future jobs. This increases the efficiency of the business and employees' own satisfaction. Remember: training is also the cornerstone to safe working practices.

Benefits of training

The benefits training can give include:

·         reduction of learning time and cost - people learn the job quickly, to required standards, safely, and with minimum waste of business resources

·         improved job performance - increased output, improved quality work done on time

·         reduced labour turnover by developing employees' potential and their job satisfaction, and

·         increased customer satisfaction through improved goods and services.

Staff training is a big investment in terms of the cost of the training and the time lost when staff are away from the job. Choose the training carefully. Involve the staff member in the choice. They may be more aware than you of the training they could benefit from.

·         All staff should have the opportunity to participate in training appropriate to their jobs.

·         Training should aim to improve workers in their present jobs and prepare workers for other positions.

·         The best methods should be chosen if training is to be effective - half-hearted training can be bad for morale.

·         The right number of staff should be trained for promotion.

 Training for the small business operator

If your business is small or quite specialized, the following types of training are likely to be more suitable:

·         on-the-job training

·         industry-specific issues and techniques (often provided by industry associations)

·         supplier-provided training which covers products or services, e.g. companies will often send out sales reps to train your staff about their particular products (which will make it easier for your staff to sell!), and

·         educational training from institutions such as Vocational institutes.