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If you are starting your business from the ground up, you will run into this question.  The answer is employees.  Well, not always, but almost always.  Almost no business owner wants to hear this, and they make very impassioned arguments about why this should not be the case.  I agree.  Life is much easier as a business owner if you don’t need employees.  I personally prefer not to use employees.  However, don’t delude yourself.  If you misclassify employees as Independent Contractors, you can face financial consequences, and if you do it intentionally you can even face punitive damages.  The easiest rule of thumb is to be honest with yourself on how much control you want to exert over the employees.  If you are going to be requiring them to be somewhere at a specific time, or follow certain procedures right off the bat you probably have an employee.  If the person you utilize has complete discretion over how and when to accomplish the task (AND a business license…AND insurance…AND a business name) you may have a legitimate case for Independent Contractors.  The specific IRS guidelines (and forms) can be found here http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Independent-Contractor-Self-Employed-or-Employee  but be aware that some states, like California, have even more stringent requirements (and a need for the money that employee tax provides so they are highly motivated to audit you).  The time and money you save by using Independent Contractors is far outweighed by the time and money an audit costs and be aware that depending on the circumstances, the State may report you to the IRS – blessing you with further audits for years to come.  It’s just not worth it.  If you do use Independent Contractors, do yourself a favor, and get a written legal opinion from a practicing lawyer stating they consulted with you and opined that the classification was legitimate.  This will not necessarily win your audit, but it will probably get your punitive fines reduced at the least. 

If there is one phrase that used to make the hair on the back of my neck stand up as an HR Director it was “yeah, but they were just joking around”.  This was usually the explanation provided for the incredibly offensive racist joke, the repeated sexual comments, and yes, even the hole drilled in the wall separating the males’ and females’ restrooms (I swear, I couldn’t make this stuff up).  What I’ve seen happen time and again, is a manager or owner wants to create a fun, informal atmosphere.  They hire people who they like and enjoy and everything is great for a while.  This can usually go on indefinitely but if it’s a successful business it will eventually begin to grow and there will inevitably become a time when the owner or manager needs to hire people outside their network.  Strangers, if you will.  As soon as this happens, or maybe even before, the workplace dynamic changes.  What used to be acceptable might not be, and it can seemingly happen overnight.  So what’s the answer?  It’s not to stop growing, and it’s not to only hire people who like dirty jokes.  A workplace culture has to mature, just like people need to.  What was maybe okay when it was the owner and her best friend working out of the garage just won’t be once two more employees are brought on board.  The trick is not to wait until people are offended, as that always creates awkwardness.  It’s best to be intentional about the kind of culture you want, and start working early on not only the policies, but also the norms, you want in place to foster that culture.  It starts with a handbook, but there is much more you can do as well.  And take heart; you can still joke and it will still be fun, but you do need to set things up to keep yourself out of court.  For more info on creating great cultures call Limitless HR Solutions.

One of my favorite parts of my job is helping first time managers become leaders.  Being a first time manager is really challenging and a lot of times organizations can overlook this.  Usually the best individual contributors are the ones chosen to be managers and they hardly ever have the requisite skill set needed for their new role.  This is most glaringly obvious when it comes to dealing with performance problems.  With few exceptions, your best performers are woefully unprepared to deal with problem employees. Why?  Because most have them have never BEEN problem employees, therefore, they have never undergone a coaching conversation or discipline encounter.  Chances are also high that your high performers have at least a streak of perfectionism.  Face it, that’s what makes them such good employees.  Unfortunately, left untreated it does not make for great leaders.  I have always said that bad bosses are perfectionists but great leaders are actively recovering perfectionists.  It’s good for them to have the high standards, but they have to have the emotional intelligence to temper this perfectionism in order to authentically reward progress and have a diverse and balanced team.  All of these are really tough to teach when the new manager’s supervisor is also in the trenches, which is why it can often be a great solution to partner with a leadership coach before your rookie manager becomes your HR nightmare.  Find out more http://www.limitlesshrsolutions.com 

The easy answer to this question is, if you have employees, you need HR, however it’s not that simple when you are a small or smaller business.  The reality is, as soon as you have employees, you have compliance requirements.  You need posters, you should have a hand book, you need to have payroll.  It is very complex and overwhelming, which is why so many business owners decide it’s just easier to hire Independent Contractors.  Beware of this trap, as it’s only easier until you get audited and after that it is unimaginably unpleasant.  But the truth is, if you are small or just starting out, it probably isn’t feasible to have a dedicated HR person.  A lot of times, the business owner will take on this role his or herself, or they will have an all-purpose administrative person who handles all the business’s paperwork.  This is actually a pretty good solution, provided you have a way to know what your compliance requirements are.  There are resources to help you.  You can go right to the source, such as the Department of Labor (www.dol.gov) to learn different laws.  The problem is this can be a bit confusing, since there are State and Federal laws and it’s not always easy to tell which take precedence when they are different, however an easy rule of thumb is to do whichever is more favorable to the employee and least favorable to the business and you are probably okay.  Another option is to outsource your HR.  Here, you also have options.  You can utilize a labor attorney to assist you.  With this option you will be assured that you will have legally compliant policies.  The downside is it is very expensive and you will want to make sure you choose an attorney who specializes in labor compliance or you will spend a lot of money for them or their paralegals to do research on your dime.  You can also use a large consulting firm.  These are also safe options.  The downside here is that you may pay for services you don’t need, you often have less flexibility in service offerings, they can be expensive and are often impersonal.  A smaller boutique firm can be a great choice for a small business.  If you go this route, make sure you pick someone who is a good fit for your culture and who has the experience required to meet your needs.  Ask about the types of things they’ve handled and make sure they will be available to support you.  At the end of the day, you have a lot of options and no one choice is right for every business.  

Something to consider regardless of the size of your organization is employee fitness.  If you review any list of “Best Places to Work”, something that almost always appears is some sort of commitment on the part of the organization to employee fitness.  There are so many things to do here, that the only limits are really your imagination.  Some companies participate in fund raising events like walks for cancer.  Others train together for marathons.  Some provide gym passes for employees while others bring in biometric screening to help employees detect life threatening conditions before they happen.
I think company fitness challenges are one great way to get employees motivated and encouraged to participate together and improve their health.  Our “Bootcamp at Work” program consists of bringing trainers to  your site to lead employees in a fitness class.  This is a fun way to get the whole office engaged and our skilled trainers can provide modifications that allow every level to participate and still get a good workout.  Depending on your facility, you can host workouts before work, at lunch or after work.  The great thing about Bootcamp at Work is that your employees don’t need to drive to a gym, and they can do this with their peers, so they’re not alone.  
Regardless of the specific program you choose to implement, investing in the fitness of your employees is almost certainly a good bet. 

Outsourcing has become a bit of a panacea for businesses and in some cases it has gotten a bad rap.  We all have stories of trying to resolve a seemingly simple problem and spending hours on the  phone with someone who doesn’t speak our language who has been employed specifically because they don’t charge as much as an ‘in-country’ resource would cost.  It’s a classic dilemma:  Employers facing rising costs through wages and health care and increased global competition must find ways to retain customers and still make a profit.  At Limitless HR Solutions, we believe that you can make intelligent outsourcing decisions while still remaining true to your corporate culture and values.  We provide a bridge between your company’s core strengths and the often confusing world of legal compliance.  Unlike huge consulting firms, we don’t offer a cookie cutter solution and expect you to fit into it.  We are small and flexible enough that we can provide just the right amount of support, usually with your existing team, to give you peace of mind that the back office is being handled correctly and you can invest in your top talent doing what you do best.  We will work with you one on one to solve any “Human Resources” problem you have – whether it’s wage and hour classification, new managers, interview training or Independent Contractor issues.   Limitless HR Solutions is the perfect solution for your small business!

What is a Change Agent and does anyone REALLY enjoy change?  Can you hate change and still be effective as a leader?  Well, yes and no.  You CAN hate change, but you certainly better not act like it!  The fact is we’re all uncomfortable with change…especially when we’re really good at what we do.  Change can be threatening, scary and sometimes just plain inconvenient. As a leader, not only do you have to deal with your own feelings when it comes to change, you also have to deal with those of your people. 

So how do you do this? 

Unfortunately, as a leader, you will be often called upon to communicate change to your subordinates that you yourself are struggling with.  Maybe your organization is growing faster than you think is prudent; maybe you’re venturing into opportunities that are a little too risky for your taste, or maybe the new Director isn’t exactly whom you would have chosen.  What is the appropriate way to address this? Communicating change you don’t agree with is really what separates the Change Agent from the Change Victim.  And really, how you address it starts even before you communicate it. 

First, are you being open minded?  When the change has been communicated to you and you think it’s the stupidest thing you ever heard of, are you opening yourself up to the possibility that there (just may) be information you are not aware of that makes this all make sense?  Have you considered the alternate points of view and set your own agenda aside?
It can be a really tough spot for leaders when you have done all this and you still don’t agree with the change.   It can also be a career defining platform!  You have an obligation as a leader of your company to present your point of view honestly and non-defensively.  If the powers that be don’t accept your opinion, your obligation is then to let it go and endorse the change anyway.  Hard to swallow?  Yup!  But what are your alternatives?

The one career killing move is to tell your boss, yes, you’ll make it happen and then badmouth the change to your peers and subordinates.  This is deadly!  First, no matter whom you swear to secrecy, make no mistake your opinion WILL get back to EVERYONE.  Especially if it’s dissenting (People love conflict).  Second, and more importantly to your status as leader, if you tell everyone that the change needs to be implemented but you’re against it, you make yourself look like a victim.  As tempting as it is to side with your subordinates and commiserate about the stupid decision, this places you in their camp as a peer, not as a leader.

A leader will communicate the best news about even unwelcome change and help people still feel enthusiastic or optimistic about it.  Does this mean lie to your people?  No, of course not. But remember, there is a reason someone thought the change was a good idea.  You need to communicate those reasons.  If you just can’t ethically endorse the idea, you will need to at least endorse the necessity to give it a try.  Even if it’s negative destructive change (like restructuring or downsizing) remember that there is a higher purpose to it.  If you can’t get behind the change no matter what, this should be a huge warning sign for you.  Maybe it’s a one-off, or maybe you’re in the wrong role or the wrong company.

The most important thing to remember when communicating change is that your people are probably afraid of the change and your job is to give them a reason not to be.  You need to provide clarity and a vision of a better future for them so that they are able to walk through the change with confidence that things will improve as a result.  You can’t do this if you are leading the anti-change party.  That is NOT doing your people a service. 

More on change soon.  In the meantime, how do you deal with change?  Drop me a line and let me know.