People management: best management practices to consider

Running a small business can be challenging enough, but effective people management is also an important component of keeping your team functional.

You could easily create a list of “101 Best and Worst People Management Practices,” but let’s focus on a short list of best practices.

Best Management Practice #1: Keep personnel records up to date.

Keeping records up to date includes storing valid copies of all documents and contracts related to your personnel in a personnel file. This is extremely important not only for internal auditing and tracking purposes, but employers have a legal responsibility to keep records on any changes in employees’ work history. Keep clear records related to hiring, salary changes, performance, and tax and benefit information.

Best Management Practice #2: Control the time worked and the time off.

Be sure to keep track of all the time worked by your employees. This is especially critical if your employees are non-exempt (hourly employees who are eligible for overtime). Employees must report time worked and time away from the office through time sheets or other time reporting software that is reviewed and approved by the supervisor or other designee. This is another area where you are at risk as an employer if you don’t have accurate records of time worked.

Best Management Practice #3: Track employee performance. Studies show that when employees have a clear idea of ​​what is expected of them, they tend to perform better in the workplace. Have regular conversations with your employees about their work and listen to employee feedback on what works and what doesn’t. Take the time to prepare a formal performance review so that there is a record of your discussions. Performance reviews or employee evaluations must be conducted annually. These performance review sessions can be as formal or as relaxed as you like, but it’s a good idea to keep in touch with all staff members and check in from time to time to improve performance.

Finally, when it comes to personnel management issues, you may find yourself with difficult issues in the workplace or with employees not abiding by company policies. Addressing issues as they occur through coaching keeps the lines of communication open and helps prevent issues from spiraling out of control. Establishing and adhering to company policies can help you remain neutral during disputes, so make sure your employees know what your company’s policies are from the first day of employment. Make sure employees have access to all employee policies and review key company policies annually.