Types of employee issues in a Small business
There is a lot that goes on in small businesses. Most industries have their share of challenges, but there are some challenges specific to small businesses. One of these challenges is what many companies like to call "employee issues." Employee issues are any problems that arise with an employee's work performance or conduct. While these issues may not seem too serious at first glance, they can create a ripple effect throughout the company if not addressed immediately. In this article, I'll discuss how to deal with an employee issue in a small business.
General Types of Employee Issues
There are four general types of employee issues that can occur in small businesses: performance issues, conduct issues, customer service issues, and labor law concerns.
Performance Issues. In a small business that has a single owner or two to three owners, there may be performance issues. When the owner is running the company, there are certain responsibilities that go along with running such a company. Since there is no board of directors for the company (only one owner), it's possible that there will not be as much oversight as there would be if the company had more than three owners and/or employees. Thus, things like performance issues and customer service issues may arise. Another issue that can arise in a single owner company is a problem with the owner's work habits. For instance, since there are no other employees to depend on (other than the one or two who work there part-time), if the owner does not perform up to expectations then there will be an impact on the company.
Conduct Issues . Conduct issues include anything that goes against company policies or standards of conduct. For example, an employee may not show up for work as scheduled. This can be costly for a business for a number of reasons. The other employee that showed up that day may not be as productive, and the supplies will not get to the customer as quickly.
Customer Service Issues . Customer service issues usually arise because the employees did not provide good customer service to the customer. In many cases, employees are very busy working on their own tasks, so they may forget to take care of their customers properly. While this is rarely brought up by an employee directly, it can have a huge impact on the business in terms of losing revenue and losing potential customers.
Labor Law Concerns . Labor law concerns are quite common in small businesses. This is because the business owner is in charge of everything. If a problem arises in the company, the owner may not know which laws to follow. For instance, if an employee has health issues and cannot work for a while, the company may not know how to deal with this properly.
The First Steps
When an employee issue arises in your small business, it's important to handle it right away. Waiting too long when there is an issue can cost you both time and money. There are some steps you should follow when dealing with an employee issue:
When confronting an employee about issues at hand: • Confront him or her privately. • Be specific about the issue. • Give him or her time to respond. • Listen to the employee's response. • Take corrective action if necessary.
For instance, if an employee is always late and arrives at work when scheduled you should first speak with him or her privately. Tell him or her that you are concerned that they are rarely on time and explain to them what the impact of this is on the company as a whole. You should give him or her some time to think about it, then have a follow-up discussion with them right away preferably within two days of your initial discussion with them. You should listen to what they have to say. If they are unable to explain their tardiness, you should take some corrective action. For example, if the employee is chronically late and cannot provide an explanation then you may want to consider giving that person a different position and different responsibilities. However, if the employee's tardiness is due to illness or vacation, then you should try to work with him or her in order to get them back on track (if possible).
When addressing an employee about issues: • Give the employee some time to think before confronting him or her. • Be ready for anything he or she might say. • Be specific in what you want the employee to do. • Be specific in what action you may want the employee to take. • Follow up with the employee regarding his or her actions.
For instance, if an employee is chronically late, you should give him or her some time to think about what he or she might have to say about it. Be ready for anything the employee might say. If there is no explanation for tardiness, then you should confront him or her directly and be specific about your concerns and expectations. Stay calm but firm in your approach while following up with the employee regarding what action they took or if they followed through with your request at all (if they did not complete it).
When an employee is breaching a contract you have with the employee: • Always give them time to respond. • Be specific about what you want them to do. • Follow up with him or her regarding his or her subsequent actions.
For instance, if an employee is violating the company's dress code policy, you should give them some time to respond to your concerns. Be specific about what you want him or her to do and tell him or her why it's important they follow the dress code policy (for example, if they work at a restaurant). Following up can help you gauge how the situation is being resolved. If it's not being resolved, you will need to provide a warning and/or take corrective action.
When addressing customers with an issue: • Be professional and courteous with the customer. • Give the customer some time to respond to your concerns. • Be specific in what action you want the employee to take. • Make sure the employee understands what is expected of him or her. • Follow up with how the situation was handled by contacting your customer directly about it if needed and/or by talking with the employee about it as well.
For instance, if a customer is having an issue with an employee, you should be professional and courteous with the customer. Give the customer some time to respond to your concerns. Be specific in what action you want the employee to take. Make sure the employee understands what is expected of him or her. Following up will help you monitor how your efforts to resolve the situation are being handled as well as provide feedback to see if any further action needs to be taken by either party involved (you or the employee).
When addressing an employee regarding returning a work-related item: • Try and make contact with them directly first before escalating it.
Conclusion
While employee issues are often a concern for small business owners, the steps above can help take some of the stress out. A business owner's reputation is often hard-earned and difficult to build. It is important to keep this in mind always when dealing with employee issues. Many of these things are easier said than done, but being aware of them will definitely make it easier when an employee problem arises.
If you currently have employees in your small business, do you have any particular tips on how to deal with an employee issue? What have you found helpful? If so, please feel free to share your thoughts with us below in the comment section. We would love to hear from you.