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January 22, 2007 Commentary

Personnel, minus the person | What to do when your company is too small for a human resources manager

By Rick Dacri, President

Dacri & Associates LLC, Kennebunk

Human resource professionals can add value to any organization. Recruiting and retaining star performers, building a productive workforce, coaching managers to perform at higher levels, ensuring that the organization stays compliant with employee-related laws and regulations, raising the bar on performance — HR can mean the difference between success and failure in an organization.

But what can you do if you don't have an HR professional on staff? It's a predicament faced by many companies in Maine.

Without HR, you have to recruit, retain, pay and develop your own employees — a big challenge, especially considering everything else you have to do to run your business.
With that in mind, here are five tips to help you successfully manage your own HR needs:

1. Delegate HR responsibilities. Most small organizations fall short in developing their supervisors. Too often the good, reliable technician is anointed supervisor, and little attention is given to whether she has the skills or desire to manage a staff. Couple this with little or no supervisory coaching and you have created a potentially explosive situation. When supervisors are not trained, you find organizations where productivity, quality and service are weak; turnover and absenteeism are high; and workplace accidents and employee complaints are frequent.

Organizations that invest in developing the leadership skills of their supervisors reap tremendous rewards. At the Lincoln Home, an assisted-living facility in Newcastle, the lack of an HR department has fostered a tight working relationship between staff and managers. Without the buffer of HR, supervisors have become more accountable for recruitment and management. When you're responsible for hiring the person, you can't blame anyone else when things don't work out. This strategy works at Lincoln Home, where turnover is well below industry average.

2. Develop consistent personnel policies. At Huston & Co. Wood Design, a furniture maker in Kennebunkport, owner Bill Huston realizes that the days without systems, policies or procedures will soon be over for his eight-person firm. Though there is the desire to cling to the days when decisions could be made as situations occur, he also understands that the risk of inconsistency can result in misunderstandings or worse. That's why he's beginning to develop a more formalized system to handle personnel matters.
For example, many employers are unsure what and how to pay their people, and often set wages based on what they hear from applicants and employees. An effective way to address this problem is to look to industry groups that can provide wage surveys. David Geary of D.L. Geary Brewing Co. in Portland uses a strong knowledge of his industry and the market to ensure that he pays his people competitively — which means he's taking a significant step toward keeping them, and keeping them happy.

3. Know the law. Without HR expertise, employers are most vulnerable to compliance and employee issues; it's nearly impossible to understand and keep up with changing laws. Yet, few managers have received the training to address problem employees, and many don't know what they should about the law — a recipe for disaster.

Portland establishments DiMillo's and Gritty McDuff's Brewing Co. turn to their industry association for updates on compliance issues. Other organizations use corporate attorneys and HR consultants, who can provide newsletters, regulatory updates and telephone helplines.

4. Use outside experts for thorny personnel issues. You don't want your managers guessing about how to handle a sexual harassment complaint, for instance. Performance problems, poor attendance, workplace injuries or simply the need for time off — when dealing with people, problems occur and supervisors need to be able to respond. They also need to respond correctly.

In most situations, a well-trained manager can routinely address issues as they come up. Occasionally, though, more complicated issues arise. For help, Norm Labbe, superintendent of the Kennebunk, Kennebunkport and Wells Water District, keeps a human resource consultant on retainer. Labbe says he likes to be proactive when dealing with employees, adding that the high morale he generates among workers is worth the cost of hiring an expert.

5. Address workforce issues immediately. Though managing a workforce is always difficult, successful employers know that if they take care of their people, many issues that can grow into problems can quickly evaporate — but if a problem does arise, jumping on it is the best strategy.

Walk into a Gritty McDuff's, for instance, and you'll be greeted with excellent customer service. The staff works hard, but co-owner Richard Pfeffer pays staffers well, provides good benefits and flexible scheduling, and fosters a fun working environment — and he addresses personnel matters quickly before problems can poison an otherwise enjoyable and productive working environment.

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