Why Contractors Shouldn’t DIY Their HR with Tena Jolley | CFC 296

Do not DIY your HR: Just as you wouldn't DIY complex legal or accounting, avoid handling HR without professional guidance due to the complexities of employment laws and potential legal pitfalls.

Fractional HR is a viable solution: If you can't afford a full-time HR manager, explore fractional HR services that offer customized support on a project basis or small retainer, which can be more cost-effective than managing problems after they arise.

Implement progressive discipline: Establish a clear, written progressive discipline policy with documented steps (verbal coaching, written warnings) to address performance issues. This protects your business from costly unemployment claims and potential lawsuits.

Invest in clear job descriptions and training: Well-written job descriptions, coupled with comprehensive onboarding and training, set clear expectations for employees and are crucial for effective performance management.

Conduct forward-looking employee evaluations: Shift from annual performance reviews as backward-looking 'blasting sessions' to a forward-looking roadmap for professional growth and development, including regular quarterly check-ins.

Strategically bonus non-revenue-producing employees: For administrative staff, bonus based on objective metrics like accuracy, timeliness of paperwork, process improvements, error reduction, or shortening turnaround times, as these contribute to overall efficiency and savings.

Prioritize compliance: HR involves navigating complex state and federal laws (e.g., Department of Labor, EEOC, FLSA). Professional HR support ensures your business remains compliant, avoiding significant fines and legal challenges.