By James Dowd, The Commercial Appeal
For many business professionals, starting a company from nothing and building it into a profitable venture is the epitome of the American Dream.
But that dream can quickly degenerate into a nightmare without the proper organizational and management skills, a local human resources expert said on Tuesday.
Addressing a roundtable discussion sponsored by the Society of Entrepreneurs, Bob Adams encouraged small business owners to pay attention to more than just the bottom line.
“Entrepreneurs are the lifeblood of our community, with a passion for ideas and a desire to be masters of their own destinies,” said Adams, founder of Adams Keegan, which specializes in personnel issues, employee benefits and insurance. “Often they become employers. Unfortunately, they’re not always prepared for that reality.”
In today’s sagging economy, Adams said employers must remain diligent about establishing and following clear-cut procedures.
And as more companies are forced to trim their staffs and do more with less, spelling out company policies in black and white is the only way to go.
For example, it’s advisable for employers to require employees to sign agreements outlining what constitutes company property. That includes desks, lockers, computers and e-mail.
And, all company-owned property may be subject to search.
“You need to have a policy addressing that and making it clear what exactly belongs to the employer,” said Marty Barton, vice president and general counsel at Adams Keegan. “Otherwise, you could open yourself up to assault and battery charges or defamation of character or worse.”
In addition, small business owners should not simply assume that terminated employees don’t have to be compensated for any accrued and unused vacation and/or sick time. Developing a standard policy — and consistently sticking to it — is the only way to operate, Barton said.
And above all, Barton advised, employers should never deduct expenses such as uniform costs or tuition from an employee’s final paycheck without first having secured written consent to such an agreement.
“Unless you have a signed form indicating what may be taken out of a paycheck upon separation of employment, don’t do it,” Barton said. “It may not sound fair, but it’s for your own safety.”
For business owners like Susan Mealer, the program was an eye-opener.
“We’ve established good policies, but this makes it apparent that every business owner needs to keep employee manuals updated and in order,” said Mealer, founder of Answering Advantage. “It’s in the best interest of the employer and the employees.”
Caren Creason, a CPA with The Marston Group, agreed.
“This is invaluable information for my clients,” Creason said. “A lot of small business owners aren’t aware of how important these policies may be, but the reality is, in today’s business world, they need to be.”
Copyright, The Commercial Appeal, Memphis, TN. Used with permission.
