E. Planning and Preparing to Manage a Small Business 12.00 Explain human resources management in a small business. 12.01 Explain Staffing Procedures.

Staffing A process of hiring employees who can help run the business efficiently, attract customers, and increase sales. Type of employees needed? Skills missing by the business owner? Skills needed daily and/or occasionally?

Job Description A written statement listing duties and responsibilities of a specific job.

Job Specification A written document which spells out the abilities, skills, educational level, and experience needed by an employee to perform the described job.

Recruiting Searching for people to hire to fill job positions.

Recruiting from within the business environment Can motivate employees to work hard for promotions Can reduce the cost of recruiting and training May limit opportunities for introducing “new thinking” into the business

Recruiting from outside the business environment Classified (Want) Ads Employment Agencies College Placement Centers Referrals Help Wanted Signs The World Wide Web

Screening The first step in hiring process Identify and select those candidates who have the right job qualifications. Eliminate the unqualified applicants. Review applications and/or resumes. Conduct interviews. Check references.

Training and Development Provides employees the ability to perform their jobs well Improves morale Reduces employee turnover

Effective Training and Development Programs Implement as soon as employees are hired Continue throughout employment Include follow-up to ensure that skills are being used Provide retraining and new skill development as necessary

Training and Development Activities On-the-job training Coaching Mentoring Conferences & Seminars

Four Steps in Planning Training and Development Determine needs. Design a program to meet the needs. Implement the program. Evaluate the program.

Paying employees Compensation should: Be competitive with similar businesses in your area. Take the qualifications of employees into consideration.

Methods of Pay Wage: A fixed amount of pay per hour Productivity Pay Piece Rate: Pays an amount based on units produced Commission: Pay based on percentage of sales Salary: Fixed amount of pay for a certain time period Combination: Combines a base salary plus commission

Benefits Employment rewards for service in addition to salary

Benefits Required by Law Social Security Unemployment Compensation Worker’s Compensation

Optional Benefits Paid Vacations Paid Sick Leave Health and Life Insurance Flextime Pensions Childcare