How to Manage Employees for Small Businesses, Check it out!

By | April 30, 2022

The discussion about employee management is one of the issues in small businesses that will never run out to be discussed. The reason is, the survival and development of small businesses is very dependent on the quality of the employees they have.

How to Manage Employees for Small Businesses, Check it out!
Illustration. Photo by : Airisna Morocco.

At least, small business actors understand the basics of employee management and how to manage employees so that high employee turnover does not occur. In this article, we will review how to manage employees for small business development. Listen to the end, OK?

What is Employee Management?

Broadly speaking, employee management is the planning, management, development and improvement of employees in a company or business. The activities of management in the field of employees start from the employee procurement plan, recruitment process, employee development and evaluation.

Small businesses often pay less attention to the management of these employees so that many employees come in and out. The causes can be various such as conflicts between superiors and subordinates, conflicts with coworkers, or most commonly due to a lack of planning regarding these employees.

Before recruiting employees, of course, you must first see how many employees need, budget, and what work will be done later. If this is known, then a new recruitment process can begin. When you find the right candidate, the employee needs to be given training or at least briefing on SOPs and production flows.

Employees who have been recruited also need to be evaluated. This evaluation stage can be continued with an increase in remuneration or even layoffs. All of this is a part of human resource or employee management which is common at all levels of businesses, both small and large companies.

Employee Management for Small Business

In order for small businesses to continue to grow, effective employee management is needed for small businesses. After knowing the basics of human resource management activities, it’s time to find out what effective employee management looks like for small businesses.

1. Create an Effective Organizational Structure

No matter how small a business, an organizational structure needs to be implemented properly. Especially when the business is showing a growing trend. Fix the organization by determining the positions in it. For example, by determining the position for the coordinator in the field of production and its staff, the coordinator of the marketing, sales, and finance divisions.

2. Set Goals and Communicate

Every unit in a business must have a purpose. For example, the purpose of a production unit is to meet the amount of production in accordance with the production capacity. Then the marketing unit is to create a marketing program that is in accordance with the target market. Likewise with the sales department, namely selling products.

These goals must be communicated to each employee so that they understand what must be done to achieve those goals. Feel free to involve them in achieving this goal. For example, employees in the production department will certainly know the problem or production capacity. It could be that the production target is too high when compared to the existing production resources.

3. Apply Delegation

After communicating the goals of the company or small business that is being run, then apply delegation. Help your employees achieve the goals of each department by creating a timeline, achievement criteria, and also small targets.

Use an effective delegation method so that all project objectives and business activities can run. Make sure everyone understands what to do. Open the communication tap as much as possible. Don’t leave employees clueless about what to do and achieve.

Other Interesting Info: How to Calculate Gross Profit, Definition, and Benefits

4. Create a Routine Briefing Schedule

Managing employees cannot rely on one-way communication alone. Employees are not only to be ordered but also to be heard. For that, schedule a briefing or meeting. Could be weekly or biweekly. This is an effective way to update information about issues among employees.

5. Provide Training and Development

There is nothing wrong with spending a little money to provide training or skill development for employees. This will actually increase their morale. Provide training that supports business development such as marketing training, operational skills, leadership and others.

If the training budget is not too much, it can be carried out using the trainee management method. That is, selecting one or two potential employees to be given training. Then they will provide training to their other friends. In large companies, this method is often used.

Other Interesting Info : How to Determine Product Selling Price (For Beginner Businessmen)

6. Reward and Appreciation

Training and development alone is not enough but there must be rewards and appreciation. Reward is one of the things that spur employee performance. While appreciation makes employees feel valued so that they will build a sense of belonging to the business they are running.

Rewards can be given from employee discipline, punctuality in completing work, achieving targets, and other things. Meanwhile, appreciation must be given for all the efforts given by employees, both in the production department and in other departments.

7. Create a Conducive Work Environment

A conducive work environment is not only one without conflict but also one that is clean, comfortable, and cultured. Every business has its own work culture. There are those who adhere to a conventional culture where the orders and wishes of superiors are everything. But there are also those who have begun to embrace the current work culture.

Currently, the inverted pyramid method is often used, which involves all elements of employees in decision making. Small businesses that have just been built or SMEs that are developing, there is nothing wrong with trying this method so that employees feel at home. This method is also believed to be able to eliminate lateral conflicts.

8. Make Employees Internal Promotion Channel

Work culture in a business can be used as a means of promotion. Attach the brand and brand identity to each employee. The goal is to make them more engaged with the company and can become internal promotion agents.

The values ‚Äč‚Äčinstilled in employees indirectly reflect the face of the company. This is very well done in employee management activities, especially in service companies. In service businesses, the interaction between consumers and employees is very intense so that what employees say or do greatly affects customer satisfaction.

Other Interesting Info: Want to Start Your Own Business? Let’s Learn Business Management First

9. Pay Attention to Employee Welfare

Small businesses can’t really do much for the welfare of employees. Giving bonuses as a reward for achieving company performance is also not optimal. However, employee welfare such as medical assistance should not be ruled out. For small businesses, it can be tried by including employees in the health program from BPJS with affordable contributions.

10. Employees Are Assets

Remember that employees are not tools but assets. Treat them as you would an asset. Provide a comfortable work environment and pay attention to their welfare. Also, don’t forget to listen to their opinions and make them comfortable expressing their opinions.

Those were some of the things you need to know about employee management for small businesses. Management of resources or employees can be said to be easy and difficult. But SMEs or small businesses must dare to do it. Expand references related to this because human resource management is always evolving from time to time.

Hopefully the above information can be useful for all fellow small business actors.

Author by : Bang izal.