By Carole Richter
“Human capital” is the wealth an organization derives from its people, the principal key to its economic success. Your team is your greatest asset. Yet, many business owners and their leadership teams don’t manage this resource effectively because they’re either not sure how to, or lack the time and attention necessary to do it well.
Entrepreneurs, particularly in this demanding emerging market, have proven they are capable of implementing a concept, and therefore, are demonstrating competencies in business operations. But they may lack expertise or experience in one or more of the other areas they oversee such as IT, accounting, sales or human resources. I wish to share some insights and best practices to help build your human resources competencies to enable you to manage this critically important asset.
– Hire the best person for the position and the organizational culture.
Over the years, I have worked with a number of retailers but one stands apart. It is an outdoor retailer who asked me to hire people “with a passion for the outdoors.” That simple directive helped me to find cashiers, sales people, warehouse staff and managers who shared a common attribute which contributed to the strongest organizational culture I have witnessed to date.
Think about how you will differentiate your organization in the marketplace. Will you support innovative thinking in grow operations, advocate against prohibition, or champion the medicinal properties of cannabis? If you can articulate your vision, mission and values (and walk the talk) then you can use them as a tool to recruit the best candidates for your organization. Qualifying candidates for the position, and organizational culture, sets the stage to move individuals and teams toward success.
– Once you have recruited the best candidate, start thinking about retention.
Think back to your first days on the job. Most of us would agree those days are the most uncomfortable, boring time imaginable. Completing paperwork is a necessity, but much of it can be sent to the employee beforehand and returned completed on or before day one. Orientation is the session to introduce the employee to the company. Onboarding is the training and assimilation of the employee into the organization. Spend time designing both processes to engage the new hire and position them for success.
You have invested a significant amount of time and money to recruit this individual and that effort should not stop when they arrive at your workplace. The best people to orient the employee to the company includes the owner and key managers. You are the ones who can speak passionately about the organization’s goals, introduce them to the leadership team, help them understand the importance of their role and promote a sense of community.
Successful onboarding depends on the ability of the supervisors and owners to set expectations, train new employees and provide feedback on progress. Employees will meander without clear directions or goals. They can’t be held accountable and meet your expectations without standardized training. They won’t thrive if you don’t reinforce positive behavior and performance.
– Address employee issues immediately. Owners and managers often dwell on problems longer than they need to.
If someone is late twice in a week, pull them aside and talk to them about your expectations. If you find a new manager is not producing the quality or quantity of work you expect, sit down and discuss it. As soon as you notice bad behavior or poor performance, address it!
First, give the employee a verbal warning. Talk to the employee and then reiterate the discussion in an email, if appropriate. If the problem continues, give them a written warning. Your best employees will realize the significance of a written warning and make immediate adjustments. With those less dedicated, you establish the documentation you may need to justify a future decision to terminate.
To ensure consistency, most organizations will use a form for written warnings that includes a description of the problem, the expectations, what resources and time-frame will be provided to help the employee improve their behavior or performance, and what will occur if they do not. If you follow this process, you are notifying the employee when they are failing, allowing them the opportunity to improve and then, if you need to let them go, you have already had all of the relevant discussions necessary.
The exceptions to what I’ve described, which is commonly referred to as “progressive discipline,” are twofold. When you recognize a new hire is not right for the position or the organization, a quick decision to dissolve the employment relationship is best for both of you. And, when the offense is severe (theft, violence, sleeping on the job, etc.) you should act immediately to protect your employees and your organization.
– Termination should never be a surprise. Sometimes an employee can’t or won’t improve. If you have followed the process described, then you have fulfilled your obligations as a responsible employer and the termination should be less confrontational.
But, if the termination is a surprise, you will be dealing with the varied emotions that arise, from shock to anger. They often react by damaging your reputation in the marketplace, voicing allegations of wrong doing, and file agency charges and law suits. The negative impact on both parties can be avoided with honest, timely communication in the workplace.
– Learn about the employment laws that affect your business. If you have not already done so, go to the websites for the state and federal labor departments to find, print and display the posters you are required to have in your workplace. These posters describe the essential employment laws for all business owners. But your responsibility grows with your organization. As you add employees, you become subject to additional laws. You need to understand the laws and how they are implemented in the workplace.
Business owners in the cannabis industry are so hypersensitive to the laws and regulations surrounding the cultivation and distribution of the product that I fear they may overlook equally important employment laws. Settlements can be tens of thousands of dollars and easily wipe out your annual net profit. You should take steps to protect your business and mitigate risk with knowledge, understanding and implementation of best practices in HR processes.
Responsible leadership requires balancing the needs of the employees with the needs of your business. In HR and business today, we are concerned with attracting and retaining talent because we realize our employees are our greatest asset. It is also one of most significant investments, both in time and money. Are you receiving the best return on investment from your human capital?
Carole Richter is the executive human resources consultant at Viridian Staffing (www.viridianstaffing.com). She has years of experience aligning HR to organizational goals to improve the bottom line.