Hiring, managing
and rewarding
your employees:
A guide for small andgrowing businesses

“The CEO is the curator of an organizational
culture. Everything is possible for a company
when its culture is about listening, learning,and harnessing individual passions and talents
to the company mission”– Satya Nadella from his book Hit RefreshTable of Contents

Part 1

People Strategy Fundamentals
What is this?...............................................................................................................3
What is People Strategy?........................................................................................3
Why do I need this?.................................................................................................5
What are the risks if I don’t do this?.....................................................................5
Can I do this myself or do I need a dedicated department/agency?...........8
How do I ensure this meets my broader organizational goals?...................10

Part 2
Hiring Employees
How do I go about hiring employees?..............................................................13
How do I develop and share a job advert?......................................................15
What should I look for in a CV?..........................................................................19

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Part 3

Part 4

Managing Employees
Why do I need to do this?................................................................................................22
How do I onboard a new employee?............................................................................22
How do I monitor employee performance?................................................................24
How can I build employee loyalty, commitment and motivation?.........................26
What are common employee issues and how do I handle these?.........................28
How and when do I dismiss an employee?..................................................................29
How do I develop policies around paid leave, sick leave, maternity leave?..........31
What business information do I share with employees?...........................................32

Rewarding Employees
How can I attract and keep the best talent?.................................................................33
What kind of salaries and benefits can I offer?............................................................34
How do I go about investing in employee training?..................................................37
How do I develop a promotion or growth plan?........................................................38
What is a company culture and how do I create / maintain an attractive one?.....392

Part 1

People Strategy Fundamentals
What is this?
This SME Toolkit has been developed by Microsoft to guide small and growing businesses
through the critical areas needed to hire, manage and motivate employees effectively.
This toolkit will also assist the human resources department or business owner to optimize
the team by empowering the team to do more extraordinary things on behalf of the organization,
through motivating people in the company. The people strategy toolkit can assist in developing afully-fledged human resource management plan as your business keeps on growing.
Tip: There could be points that may be common to all companies for developing an HR
management plan, but like with all business, a one-size-fits-all does not apply, and someelements will be unique to your business.

What is People Strategy?

Your business is only as successful as your employees are. A people strategy helps you manageand nurture your employees to get the best out of them, in line with your business goals.

63Commonly referred to as Human Resources Management (HRM) or Human Resources (HR),people strategy deals with how to:• Determine the resources needed within the company aligned with the business goals.
• Attract talented candidates to work at your company.
• Create an ideal working environment for you and your workforce.
• Set clear expectations and deliverables for people in the company.
• Get the best out of your employees.
• Document process and procedures within the company with a clear view to nurture the company culture.
• Comply with legal and contractual employment obligations.
• Clarify the regulations that should be followed and the actions that will be taken if a contract is not honored.
Essentially, people strategy is employee
management with an emphasis on employees asassets of the business. The goal is tomake effective use of employees by reducing
risk and maximizing return on investment. The
person or department responsible
for people strategy will also create, implement
and oversee policies governing employee
behavior and the behavior of thecompany towards its employees.
At the heart of it, people want to come to work,
do a good job, feel like they make a difference
and be recognized for their work.
People strategy can help you achieve this – foryour staff and your business.

64Why do I need this?
When you think about your business’ greatest asset, what comes to mind?
You may consider your fleet of trucks, your state-of-the-art coffee machine, or, perhaps the officebuilding that you decided to buy, rather than rent.
While these items are vital to the running of your business, the truth is that if you don’t have committed
drivers behind the wheels, expert baristas creating the coffee and motivated, talented staff sitting at theirdesks, these material possessions are not worth all that much.
People – your employees – are the most important assets of your business. How they perform will
determine your success.
The people strategy plan is essential to the written document that details the people side of the overall
strategy of the business goals and outlines the company’s approach and relationship with its employees.
Read more:

What are the risks if I don’t do this?
Is HR an afterthought? By not planning your people strategy effectively, you are leaving your business
open to potentially damaging risks.While some of the risks of not having an HR plan in place are tangible,
such as legal and safety risks, most of the risks are more difficult to pinpoint but can be just as damaging.
Lack of employee motivation and productivity, for example, can hinder your business’ financial success,as well as harm relationships with your clients. It is essential to build a relationship of trust with employees.
The people strategy approach is one of the tools to accomplish employee trust. The business goals arecommunicated through the onboarding process. Clear communication about the role of the employee
in the overall business should be shared as well. This will also form part of the culture of the company toensure brand representation for the business.
65Below, we have listed only a few of the key risks of not implementing a good people strategy plan:
When approaching your HR strategy, there should be a clear roadmap in the form of a detailed plan or matrix. This will include timelines,deliverables, tactics and channels. Most importantly, you need to focus on your goal, and the plan should map to this objective. This keeps
everyone on the same page and ensures that your efforts are consistently mapping to the same objective and reinforcing it.

Critical Skills Shortage

Unethical or Unprofessional
Employee Behavior

Intellectual Property Leaks

Not having the right employees in placewith the skills you need to compete,innovate and grow, can hamper yourbusiness’ future. An HR strategy and staff
training plan ensure that you have skilled
professionals working for you at all times.

While you may assume that youremployees will behave ethically and morally
when representing your company, this is
not always the case.

If your staff are responsible for, or haveaccess to, sensitive data, HR needs to makesure employees are aware of theconfidential nature of the information andwhat the consequences will be if this isshared with others.

The skills required of employees in a small
business very often differ from those skills
required in bigger organizations.
Employees are often required to havemuch broader skills as they multi-task anddeliver across a wide variety of needs.
Succession planning plays a critical role in
leadership development. The businessshould invest time and money to develop
the leadership pipeline.

A people strategy will communicate what
behavior is expected of your staff, and whatis deemed unacceptable. Small businessemployees are often expected to deliver
almost immediately without proper
onboarding and training.
It is highly recommended to have a guided
onboarding process for all staff members,
this will also convey the culture of thebusiness and the communication channels
to follow in a professional manner.

It is important to cover intellectual property
as part of the contract given to theemployee.

Hiring Fraudulent People

Employee Contract Issues

Low Office Morale

A good people strategy will include a hiringand screening process to help you find out
if your potential employees have criminal
records, bad track records with previous
employers and other information that you
need to be aware of before hiring.

A contract of employment forms the
backbone of the employee-employer
relationship. You need to express
employment terms and obligations clearlyin writing. This includes working hours,
annual leave days, sick leave, probation
period (if applicable) and notice periods inthe case of an employee’s resignation,
among other relevant points.

Good HR practice will help you to create apleasant, nurturing and exciting
environment in which your employees canthrive. Without this strategy in place, you
could have talented employees who do not
perform to the best of their abilities, or
unsuitable staff members in key positions.

Avoid falling into the trap of avoiding
recruitment agency fees by using your own
family and friend networks to recruit. Even if
these networks are tapped into, make sure
you do proper reference checks. It is said
that the first ten employees of any businessoften determines the culture of thatbusiness for the remainder of its lifespan.
Fraud, corruption, theft and unethicalpractices are some of the contributors tocompanies losing large amounts of money
and their reputation due to fraudulent hires.

It is important to consider a probation
period in countries where these areallowed, as employees are often not able tomanage the pressure that comes withworking in a small business.
It is essential to cover the opreatingprocedures expected from the employee if
the business operates remotely (work fromhome)
The employee contract should also comply
with the general conditions of work
pertaining to the specific country to reduce
the noncompliance and liability of legal
costs if a contract is terminated.

People strategy sets the fundamentals forthe culture of the business through the
documentation process and onboarding.
Poor talent management could lead to low
productivity and employee dissatisfaction.
Since small businesses are often made upof virtual teams, it is important to include astrategy around how these teams caneffectively collaborate and remain
productive while ensuring the upkeep of
employee morale.
It is important to communicate the virtual
culture of the company

Read moreCan I do this myself or do I need a dedicated department/agency?
While it might seem like an unnecessary cost when you are just starting your business, you will save time, and often money, inthe long run, by utilizing a people strategy function from the start.
With this said, you must take a close, honest look at your own business to assess what is needed from an HR point of view.
Depending on the size of your organization and the complexity of the legal landscape, you can choose whether to handle people
strategy internally (by an individual or a department) or to outsource this function to an agency.
If the function is handled in-house, there are various people strategy technology platforms that can assist the HR individual or the
department in your business. These platforms will complement the people strategy of a company to create a conducive
environment for employees, managers and the business owner.
If you prefer to go the agency route, various agencies have tailor-made packages specially for start-up entrepreneurs to assist
them with this important function in the business, selecting the right people for the job but also for the company.
Tip: While organizations might try to cut costs by not having a people strategy in place, the reality is that even small businesses
need an HR approach. And will save a lot of money in the longer term.
You may not need to hire a full HR department; one person could handle the people strategy duties of a small business.
Or, you could consider hiring a part-time HR consultant or choose to outsource your strategic people management to an
external firm. A Virtual Assistant with an HR background could also be used.
As an employer or manager, it will be your job to ensure that you are managing your staff effectively in line with thepeople strategy in place. You will often be faced with the conundrum of finding time to manage people whilst delivering
on requirements for clients. If you have skilled employees, your workload as a business owner will be less, so upskilling
employees is essential.
Various HR management tools are available online to assist an employer or manager in managing the end-to-end process
to recruit, employ, onboard, conduct exit interviews, and the daily HR management functions as set out in the company strategy.

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It will also be essential to include a policy to work from home (virtual working policy). This policy should also include and consider thecompany’s overall communication plan, to ensure that employees have clarity and understand the requirements and what would be
expected from them, especially when working in different time zones.

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How do I ensure this meets my broader organizational goals?

STEP What does success look like?

01

People strategy must understand the business’ broad strategic goals and direction. If these aren’t clear to all parties involved, it
will be an obstacle for the business. It’ll also be challenging to align and support what should be considered when developing
the people strategy to be aligned with the business goals:• “What are the business’ Key Performance Indicators?”• “How can people strategy play a role in helping to drive those KPIs?
The responses to those questions should present clear directives for HR, such as:• Reduce cost.
• Increase productivity.

STEP Align and set your people goals

02

Once you’ve clearly defined success in your organization, it’s time
to articulate the goals of the people strategy.

STEP Set out specific actions to reach the goals

03
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One of the goals may be to increase staff retention. This is a statement
and not an action. To action this statement and measure the success, it
could be a regular tactic such as distributing employee satisfaction
surveys once a quarter to measure employee wellness. Some questions
that may assist with this measurement can be:• What’s the most challenging part of your job?
• How can the company improve?
• Rate your satisfaction with your compensation.
Use the data from this survey to implement specific retention tactics. For example, if many people are saying that the cultureneeds to be improved, you could begin a culture club or team to address the issue. Also, evaluate the efficacy of theonboarding process and if the culture of the company is genuinely represented through the process.

STEP Get everyone to buy-in and on the same page04

To achieve true alignment, you need to get everyone at the table more than once. Once you’ve created your people strategy
plan complete with specific actions, that you return to your business leaders, get them involved and make sure they feel yoursystem truly aligns.

STEP Measure

05

Whether this is your first or fifteenth time aligning your people goals with your business, it’s of the utmost importance tomeasure your progress. If you want to demonstrate how HR is supporting your business definitively, you need to have the data
to back it up. While this may seem obvious, only 25% of organizations have relevant HR data available to share with key
stakeholders.
Here are some examples of the type of action measurement that can be helpful to stakeholders:
Employee satisfaction surveys:
Conduct employee satisfaction surveys at set intervals (e.g., every quarter or year). Compare the surveys to previous ones tosee if any progress was made and where.
Digitize onboarding paperwork:
Compare time and cost for onboarding before and after digitizing to see where savings have been made.

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Aligning HR goals and business goals don’t need to be an overwhelming task if you break it down into steps, set clear goals, andmeasure along the way. So, why aren’t more HR departments taking these steps?
The reality is if HR professionals are too busy filling out paperwork or answering benefits questions, they’ll never have the time to do the
crucial functions necessary for true alignment. Having one tool that decreases all this repetitive work is an efficient and smart way to free
your HR owner to focus on more strategic tasks. Without HR fully at the table, your company is missing out on the perspectives andstrategies that are necessary for success.
Tip: Making use of technology to streamline administrative processes can save a business time and money:

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Part 2

Hiring Employees
How do I go about hiring employees?
Finding the right person for a job takes time and can be a significant financial investment,
especially if you rush the process and end up hiring someone who is not suitable,
underqualified for the position, or who does not match your company culture.
There are two ways to go about hiring people. You can consider promoting an existing
employee or look for someone externally. Both have their advantages. Whenrecruitment / promotion happens internally, it is sometimes more productive,
saves money and improves staff morale when they see there is an opportunity
for growth within the business. Also, if someone is promoted within the business,less training may be needed as the employee already understands the company
culture and processes.

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If you prefer to hire people externally because of a skills
shortage or a new position being created within thecompany, there are several ways you can go about hiring
people. You could do it yourself by placing advertisements
or scout for talent at networking and career events, or you
could hire a dedicated recruitment agency or consultant to
do it for you. This is often the best option if you don’t have a
Human Resources department.
Whichever way you decide to recruit the following should
be taken into consideration:- The people strategy plan.
- The overall business goals.
- The company sales pipeline and current contracts.
If the company’s sales pipeline is more project-based, it
may be better to employ independent contractors for theduration of the project rather than a permanent employee.
Every country has its own set of laws when it comes tohiring people. In South Africa, for example, employers aregoverned by legislation relating to basic conditions of
employment, labor relations, skills development,
occupational health and safety, and employment equity.
Tip: You must familiarize yourself with the labor / hiringlaws applicable in your country. Ensure that yourbusiness complies with the policies and procedures.

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How do I develop and share a job advert?
A job advertisement means you’re selling your company to potential employees.
Know your audience, address them in a language they understand, and tell them what’s great about the position and the company.
Think about your company culture and brand that are visible on social media. People want to be part of what they have seen online.
Remember, you’re talking to people, so user-friendly, familiar phrases and addressing the reader directly for example, “You will work closelywith the marketing department” sounds warmer than “The ideal candidate will work closely with the marketing department”.
Long advertisements detailing every responsibility of the job can overwhelm candidates and deter them from applying. Keep youradvertisement short and focus only on important requirements. This way will ensure that only the most qualified candidates will apply.
A job advert is often the first experience people will have of your business. Make it a positive one and try to respond to every candidate,even the unsuccessful ones.
Your hiring strategy should be targeted. If it’s not, you’ll likely be flooded with applications from unsuitable candidates. The recruitment
platforms make use of data-driven processes in the backend to ensure that the advertisement is targeted to the right group of people soutilize this function to enable you to receive applications from top candidates.
There are various recruitment platforms. Depending on your company’s needs and industry, the most suitable platform should be selected.
LinkedIn is one of the most well-known platforms internationally:
Read more:
Tip: Remember to tailor your advertisement to the platform you’re using. A job advertisement on Twitter will look very
different from one on LinkedIn.

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Next, write up a detailed job description for the position you want to fill. If your organization requires it, the job specification should becirculated internally. Set up an interview team comprising of people from various departments in your organization, if you have more than
one department. You will get different viewpoints on candidates, and one person might pick up on something that others have missed.
Some tips on writing a job description:
Attract attention
The headline should convey somethinginteresting about the position, to standout between all the other advertisments.
Remember the right keywords as
positions are advertised on digital media
so keywords are important.
Set the tone
Depending on the position your are
advertising for, make sure you speak likea person and write for the position. It may
be a creative position or an administrative
position so a different tone and specifics
will need to be conveyed.
Give some background
Convey the company values and culture,also include some details about theimmediate team that will be part of thisposition, but remember to keep it short.
Consult the experts
Research some other job advertisements
to make sure you are up to date withcurrent trends.
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Determine role requirements
Be clear about the skills and abilities that areneeded; this is different from the nice-to-haves
that the person could bring to the position.
Format for success
Applicants normally browse advertisments onmobile phones so be brief and to the point bymaking the advertisement clear and concise.
Specifics that should be included
Location (virtual).
Equipment needed (laptop or will this be provided
etc).
Salary range.
Submission deadline.
Clear application instructions.
Share
Proof read the advertisement before publishing
Job recruitment sites
Social platforms

Once you’ve written and placed the job advertisement, you can start screening applicants from their resume and setting up interviews.
Here are a few things to keep in mind:
Decide how you will conduct interviews, e.g. over the phone or in person, virtual interviews (which platform will be used) and who will
sit in on the interviews panel.
With the shift to more virtual interview techniques, ensure you conduct your interview as you would have done in person.
Ensure all interviewees and the applicant has a meeting invite scheduled and how to connect to the interview session.
Make sure the technology and space used reflects the culture of the company.
Conduct background checks on potential candidates. These could include criminal records, credit reports, educational qualifications,etc. (not necessarily legal in every country without the candidate’s approval).
If your company utilizes behavioral assessments it will be good to do these as part of the screening process.
Request references to conduct reference checks, to get a sense of the candidate’s abilities, work ethic and reliability, as well as to verify
previous roles and to confirm employment dates. Make sure you check whether this is legal in your country before starting theprocess.
Shortlist no more than three candidates for the position and conduct a second interview with each. Have different people sit in on thisinterview, and if possible, include people who the candidate will not work with, for a different perspective.
Making hiring mistakes can be very costly, so consider including a practical component such as a simulation similar to what theywould be doing in the interview process, to assess the capability of the potential new employee.
Tip: Entrepreneurs making use of the correct recruitment process will result in employing the right person for the fit in thebusiness culture, team and position.

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Contract:
Once you’ve found the perfect candidate, you’ll need to make a formal offer of employment, in writing, via an employment contract. The
following elements should be included:
Name and address of employee and employer.
Place of work (and whether they will be located in a specific location or located virtually).
Date of employment.
Regular and overtime hours, if applicable.
Salary, benefits and overtime rate, if applicable.
Deductions.
Leave entitlement.
Notice period.
Work from home policy.
Communication policy (as most people work from home) with clear
lines of reporting and deliverables.
Cybersecurity policy.
Mobile working.
Probation period.
Termination clause.
Percentage of travel (if applicable to the role).
KPI’s (key performance indicators): this is important to ensure thatthe employee delivers what is needed in the department/business.
Small businesses often hire part-time employees or external
contractors or consultants, and these contracts will differ to atypical permanent employment contract.
Tip: An employee contract, signed by both parties, is a legallybinding document. If you make use of part-time employees
or external contractors, ensure that the deliverables arelisted clearly in the contract.

What should I look for in a CV?
High unemployment levels and the fact that online
job advertisements are so easily accessible meansthat you’ll probably get a lot of applications.
According to www.GlassDoor.com, the average
recruitment agent looks at a CV for six seconds. Thissounds absurd, but to make sure you receive theright CV, the candidate should respond accurately
and that the CV is gripping your attention. If this does
not happen during this time, move on to the nextone.
To streamline the process, have a list of skills andexperience that are essential to the position readywhen screening candidates, check which ones tick all
the boxes before reading further into the CV orcalling them for the initial phone interview.
If a candidate has been unsuccessful, send an email
acknowledging receipt of the CV and to explain thatthe application has been unsuccessful.
Read more:

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For the candidates that made it through, it is time to look deeper
Take note of the following:

Beware of these red flags:

In today’s world, just like a company cannot go without a
website, a potential employee cannot go without a LinkedIn
profile. The LinkedIn profile should be professional. It’s also
worth cross-checking a candidate’s CV against their LinkedIn
profile, to check for inconsistencies and recommendations.

Spelling and grammatical errors suggest that the candidate
does not pay attention to detail. Spell checking tools are readily
available.

Roles and responsibilities at past jobs and whether these alignwith the position you are trying to fill.

Formatting – the CV should be around two pages long, should
not be overly cluttered, and should have clear sections andheadings.

Skills – these are often more important than a person’s job title,
look for consistencies of skills being built up with experience.
Achievements ideally supported by facts for example,‘Increased traffic to company website from 200 visitors to 5,000
in three months’.
Education and confirmation thereof.
Soft skills such as communication, leadership, problem solving
and foreign languages.
Availability of references. Evidence of career progression
showing increasing levels of responsibility.
General logistics, such as location or eligibility to work in the
country.

Inconsistent dates or gaps in employment.

Unprofessional email address.
A lack of qualifications is often covered up by overplaying skills
and job specification jargon.
Job-hopping, where the candidate does not stay in one job
long enough to add value, learn new skills or build loyalty withthe employer.

Cover Letter

COVER LETTER

If you have asked candidates to submit a cover
letter along with their CV, this should be tailoredto the position, highlighting why the candidate is
the best fit for that particular job. Genericapplications show that the applicant did not takethe time to understand the position or toresearch your company.
Tip: If somebody calls to introduce themselves before sending a CV, or follows up
after they applied, make an extra effort toreview their application and give them
feedback. It shows that they are genuinely
interested in the position and are making an
extra effort to stand out.

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Part 3

Managing Employees
Why do I need to do this?
Get the most out of your staff.
Align employee goals with company goals.
Build a positive company culture.
Retain well-skilled personnel.
Attract talented future employees.

How do I onboard a new employee?
Have you ever arrived for the first day at a new job, only to find out that the company isn’t readyfor you?
Your computer hasn’t been set up, your colleagues don’t know who you are, and you can’t findthe restroom, let alone the boardroom.
If this has happened to you, you will most likely have felt disappointed, and a little unwelcome,and perhaps even questioned why you agreed to the job in the first place.
Tip: What does ONBOARD mean? The word ‘onboard’ might sound like a bit of a strange termin this context, but it is a popular word to describe how to initiate a new staff member to your company.
As the old saying goes, a first impression is a lasting one, and it sets the tone for this employee’s
experience at your company.

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It all starts with a plan:

The four C’s of onboarding your staff:

By taking the time to ensure that your new hire feels
valued and welcome on his or her first day, and putting
in place an onboarding plan, you will be setting thescene for a happy, motivated, engaged staff member.
Share these important elements with your new
employee:

Depending on the size of your organization and thecomplexity of the legal landscape, you can choose
whether to handle people strategy internally (by anindividual or a department) or to outsource this function
to an agency.

- Culture of the organization.
- Overview of the business.
- Core priorities of the role.
- Communication protocols externally and internally.
- Day-to-day expectations of the employee.
- Key meetings to be attended.
- Key individuals to meet.
-Assign a buddy to support the new team member. This
person will provide peer support. It will be a colleague
that the new employee can rely on other than their
immediate manager.
Tip: Even if you are a small start-up with two or
three people, this is something you should startfrom day one and keep as you grow. Every
employee likes and needs to feel valued.

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Company:
Give employees information about the company’s
mission, strategy, goals, customer and operational
structures, and how their job fits into that bigger picture.
Career:
Outline employees’ objectives and how those will bemeasured, as well as set expectations for success andadvancement.
Culture:Ensure that employees not only understand thecompany’s culture and environment but can thrive in it.
Connection:
Help employees forge relationships with their newcolleagues, both formally and informally.

Onboarding mistakes to avoid:

How do I monitor employee performance?

Too much too soon
Joining a new company can be daunting, and there will be a lotthat a new employee will need to learn and become familiarwith. While you may want to get your new hire involved rightaway, try not to overload them before they are ready.

There are various performance monitoring tools and platforms
available today. By assessing some of these platforms that fit into
your business goals and budget, may be a more streamlined
approach and option, especially for smaller companies. Also,
taking into consideration that most teams work remotely, thesetools can assist with remote monitoring.

Assumptions

Read more:

While the office buzzwords, nuances and procedures are very
familiar to you, you cannot assume that your new employee will
understand the jargon. Avoid any acronyms and clearly present
the procedures and information. Allow time for your new
employees to digest and absorb the information.
Lack of company communication
Don’t surprise your current employees with the arrival of a new
person, rather communicate the new person’s start date andjob role in advance. Before a new employee’s first day on thejob, all relevant staff members such as HR, the person’s
manager, and direct teammates should be prepared for his or
her arrival.
Read more:But remember, your employees are the lifeblood of yourbusiness. Their productivity levels will result in the success,or failure, of your organization. As such, monitoring yourteam’s performance is important to ensure that they arereaching targets and completing work to an excellent,rather than mediocre, standard. The way that you monitor
your employees will vary according to the job role.

Act: perform
job functions

It will be a combination of daily observations andinteractions, and clear performance objectives andmeasurements, which can be formalized using a‘Performance Objective Setting Form’.
You will need to observe your employees at work to takenotice of things like attitude, body language andpunctuality. If you start to see bad habits forming, liketardiness, missing deadlines, or a lack of motivation, you
might want to intervene early to see if there is an issue. Thisis sometimes harder to monitor with virtual teams, but as
mentioned there are online tools that can be used for thispurpose. Keep in consideration the culture of your businessbefore implementing any online monitoring tools andplatforms.
Performance Objective Setting is a practical and beneficial
way of setting and measuring employee productivity. This
ensures that the staff member knows what is expected ofthem and what goals and targets need to be met.

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Monitor:check-inand assess

Performance
management
cycle

Plan:
set goals

Review: formal
assessment andrating

How can I build employee loyalty, commitment and motivation?
“Our research continues to show that a well-substantiated relationship exists between employee engagement, the extent to which
employees are committed, believe in the values of the company, feel pride in working for their employer, and are motivated to go theextra mile, and business results.” - ISR Global Research Director, Patrick Kulesa
Engaged and motivated employees are loyal employees. You need to drive engagement to create a culture ofloyalty and willingness to stick around for the long term.
For your workforce to be engaged, enthusiastic and loyal, there needs to be a trusting employer-employee
relationship in place that is based on honesty, transparency and respect.
Tip: Retention of entry-level employees can save the business 16%, retention of employees in
midrange positions can save the business 20%, and retention of the upper level and senior
management can be as much as 213%.
Read more:

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Five steps to better employee engagement:
Make use of employee strengths
So many employees have talent and drive that are unique to them. Using the opportunity to empower an employee
and place him/her in a position where they can fully utilize their strengths will have a significantly positive effect on
employee engagement. An added benefit for employees is they get to see their own personal growth and enhanced
career objectives.
Provide the right tools
Listening to what employees need to do their job better is another way to encourage employee engagement. It might
be a quieter work environment, more communication between departments, more frequent meetings, or fewer
meetings. It may be as simple as not understanding some processes that may need some clarification.
Acknowledgement
Do not let good work go unnoticed. Some employees do a great job daily, and sometimes this is taken for granted or
becomes commonplace. For successful employee engagement, make sure the right people get credit for doing theright things.
Creating and maintaining trust
Promoting an environment of trust is essential to good employee engagement. Trust is the foundation upon which allsolid employee relationships are built. Better employee relationships mean better employee engagement in the longrun.
Encourage employee participation
Employee engagement is about listening to your workers. You should actively seek and encourage the views and ideasof your employees. Things can look very different from another tier in the organization, so it is important to view thingsfrom another perspective. For teams working virtually, this may be connecting with your teams more regularly or havefun-filled online team events to bring people closer.

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What are common employee issues and how do I handle these?
Every organization will inevitably have their share of employee issues.
Rather than waiting for problems to arise, be proactive and have policies and systems in place to deal with any concerns.
Some of the typical employee problems include frequent absenteeism, a lack of punctuality, missed deadlines, mistreatment of others andpolicy violations.
Managing problem employees is one of the most challenging aspects of running a business, but if you are equipped to deal with the issues
when they arise you will be in a good position to resolve and rectify the problems quickly and effectively.
Tip: Be proactive, not reactive. One of the best ways to neutralize employee problems is to take an objective look at yourcompany’s policies and practices. Amend any policies that are outdated, unfair, or could potentially open you up to legal issues.
Ensure that your employment contract stipulates the consequences of employee issues and how these issues will be dealt with.
This should also include the dismissal process in the business.
Four steps to managing the risks associated with employees:
1. Establish policies in an attendance policy with varying levels of disciplinary measures that address unacceptable levels of absenteeism andtardiness appropriately.
2. Implement a performance management review system that rewards excellence and uses strategies to improve employee performance aswell as enhance employee development.
3. Establish a three-step disciplinary process that includes formal notices such as verbal warning, the first report in writing, and second/final
report in writing.
4. Train your supervisors to deal effectively with problems when they arise and not wait until it gets out of hand.
Tip: Start right
Effective hiring and interviewing techniques, as well as valid job descriptions, provide the foundation for preventing unsuited employees frombecoming part your workplace.
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How and when do I dismiss an employee?
While you do not want to keep an employee on board who is affecting your business negatively, the dismissal should be your last resort, andshould only happen after you have carried out thorough investigations, intervened when necessary and conducted the necessary warnings
outlined in the disciplinary process.
You must familiarize yourself with the different legal requirements that relate to termination of employment within your market / country.
Every country will have different policies, procedures and standards, so you will need to refer to your local employment standards act orsimilar legislation document, to understand this fully. It is crucial that you are familiar with, and comply with, the legal requirements relating toemployee dismissal in your country.
What is employee dismissal?
A dismissal occurs when an employer terminates the employee’s contract.
Formal disciplinary action should only be necessary if informal
methods have failed to resolve the problem. Employee
dismissal is the last resort and final
action, in terms of your company’s
employment and dismissal
procedures.

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Points to keep in mind when it comes to disciplinary
issues:Reasons for disciplinary action and / or dismissal could
include:Set out in writing your rules and procedures for handlingdisciplinary procedures.

General misconduct (continually missing work, drug or
alcohol abuse, theft or dishonesty)

Ensure that employees and managers understand theserules and procedures.

Poor performance / capability (the ability of someone to dotheir job e.g. long-term persistent illness, inability or unwillingness to get along with colleagues etc.)

Try to resolve any issues informally first; often a quiet word is
all it takes to sort out problems.
Employers should use a fair and consistent procedure when
taking disciplinary action or going through the dismissal
process.
Employees have the right to contest unfair dismissals.
Document it:
If you find yourself in the unfortunate position of needing todismiss an employee, the accuracy of your documentation will
be important. Your performance evaluations and any
disciplinary action that is taken needs to be documented so thatyou can substantiate the reasons for dismissal in a clear way.
Read more:

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Redundancy (the job you hired someone for no longer exists
or is replaced by technology, need to cut costs, closing
business units etc.)

How do I develop policies around paid leave, sick leave, maternity leave etc.?
Employees have the rights to various statutory leave however many employers are now introducing special leave policies to deal with theplethora of unusual requests for leave. Leave and vacation policies are an essential part of any employment contract and each market /country will have different legal requirements surrounding the different types of leave (both paid and unpaid), so be sure that your contracts
comply with this. The policies also need to be clear on who the policy applies to (e.g. full / part time employees, subcontractors etc.) Leave is
not only a legal requirement, but it is also important that your employees take vacations and time off when they are sick to relax and recharge
so that they can function at their optimum and avoid burnout. A fair Maternity and Paternity leave policy can also assist you in attracting andretaining talented employees, who are interested in starting a family in the future.
When thinking about putting employee leave policies in place, remember that there are five main types of leave:

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Annual leave

Maternity leave

Sick leave

This type of leave isknown as paid time off
work, which every
employee is entitled to.
There will be a specificnumber of days
allocated to this.

Time off work (paid or
unpaid depending on
the company’s policy
and what is legallyrequired) for pregnant
women to prepare for,give birth to, and lookafter their newborns.

Paid time off work torecover from an illness
or injury. There will bea specified number ofdays allocated to sickleave, depending on
the regulations in yourcountry.

Family responsibility
leave
Family responsibility leave
applies when theemployee’s child is born
(Paternity Leave) when theemployee’s child is sick, orin the event of the deathof a close relative. This
form of leave is in addition
to annual leave but does
not accumulate if not usedin the stipulated period.

Study leave
Time off work to study.
This is usually not legally
stipulated in thecontract, but rather amatter arranged
between employee andemployer. Often theemployee will use
Annual Leave for study
and examination
purposes.

Tip: Paid leave improves worker retention, which saves employers money through reduced turnover costs.
Leave policies can have a real impact on small businesses, especially where teams are small. Consider this carefully when planning andallocating leave with employees.
Read more:
What business information do I share with employees?
While some companies have chosen to be very open with their employees, other CEOs use their discretion as they feel that sharing too muchinformation might compromise an employee’s focus.
When deciding on how much, or how little, business information you want to share with your staff you need to take into account thepositions and responsibilities of different employees and thinkcarefully about who needs, and will benefit from, thisinformation.
When sharing information, be sure to have a privacy andconfidentiality policy in place so that employees know
when confidential information cannot be communicatedto people outside the organization.
One thing that should never be shared openly is information
about employee salaries. In a small business setting,sharing salaries can lead to internal conflict. Each businessowner should have a fair and consistent method for
determining salaries based on seniority, experience,and other factors specific to each situation.
Sharing salary information without an explanation
behind each case is asking for trouble.
Read more:
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Part 4

Rewarding Employees
How can I attract and keep the best talent?
“The real competitive advantage in any business is one word only, which is, people”
Kamil Toume, Writer and thought leader
The first step in bringing in quality employees and holding on to the ones you alreadyhave is understanding what they are looking for. Generally, what they are looking for isthe opportunity for professional development.
This is more important than salary and benefits and is followed closely by the desire tounderstand where they fit into the business’ overall goals. The balance between finding
quality resources and the affordability of resources for small businesses is often difficult
to navigate. Attracting the right people is, therefore, important.
Tip: It is equally important to look beyond potential employees’ ability to hit the groundrunning. Consider their soft skills, such as flexibility, the ability to learn quickly, adaptability,
personal accountability and resourcefulness.
Working in a small business requires great resilience and hard work. Attracting top
employees is only one piece of the puzzle. Once you have a quality worker, you need towork to keep them.

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An employer can do everything right to attract candidates through the hiring process, but if an employee feels undervalued, they will taketheir talent elsewhere.Top reasons why employees leave their jobs:
Lack of advancement opportunities.
Lack of salary growth.
Negative work-life balance.
Poor organizational culture.
Poor management, which is often responsible for all the above.
To hold on to employees, you need to start their retention planning as soon as they start.
“… the single biggest constraint on the success of my organization is the ability to get and to hang on to enough of the right people.” Jim
Collins
Ten ways to improve employee satisfaction and retention:
1. Give employees autonomy. One of the main things
that reduce employee satisfaction and happiness is the
feeling of being micro-managed and controlled.
2. Challenge employees. Show that you believe in
employees by giving them assignments that will challenge
and motivate them.
3. Engage with your employees. Ask the rightquestions, both personal and professional, and thenlisten.
4. Be transparent. Happy employees know the directionof the business.
5.Support employees’ ideas. Show you value youremployee’s involvement and contribution towards yourbusiness.
6. Acknowledge employees’ accomplishments.
Regularly meet with your team and call out specific staff
for their accomplishments.
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7. Treat employees individually. Happiness is not‘one size fits all’, so spend time with each employee andfind out what they need from their leader, colleagues,
and the business.
8. Be social. Frequently bring employees together forteam activities to help develop critical connections andsocial ties that keep employees happy and engaged.
9. Provide the right resources. Remove any obstacles
to employees’ work success and give them the tools
they need to grow, from improved technology tocontinuous skills development.
10. Watch your body language. Ensure your behavior
and body language is sending out the right message to
set the tone for the culture of your business.

Another important way to track employee satisfaction, development
and performance is by conducting annual performance reviews andawarding bonuses where applicable.
The performance review and bonus payment process are a joint
responsibility for employees and managers. The process provides anopportunity for employees and managers to work together to identify
performance objectives, identify and describe work expectations,provide feedback, review overall performance and plan for futureindividual and organizational growth and development.
Think about these areas of development when reviewing andemployee’s performance:
Quality and quantity of work.
Communication and interpersonal skills.
Planning, administration and organization.
Leadership.
Job Knowledge and expertise.
Attitude.
Ethics.
Creative thinking.
Self-development and growth.
Adaptability.

Three steps to help employees reach their peak performance:
1. Involve them in setting goals
Rather than blindly dropping project goals, individual goals or your business’ goals onto your employees, start by asking what they thinkthey can achieve. This is particularly relevant if you are a new business.
2. Keep the goals realistic
Any goal needs to be difficult, desirable, and doable.
3. Avoid micromanaging
You may want to lay out every detail of how employees should achieve their goals, but you must trust them to take ownership of thesegoals and allow them to be part of guiding the company’s success.
Remember:Bonuses are not guaranteed and should be based on your business meeting its
financial objectives for the year. They are also contingent on satisfactory employee
performance. The value of the bonus should be consistent with theapproved budget.
Tip: Incorporate an employee self-review into the performance review
process. If you ask employees to grade themselves, you’ll find thatthey’re often harder on themselves than you. This also helps ingiving you the role of a career mentor rather thanunilateral decision-maker.

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How do I go about investing in employee training?
“The only thing worse than training your employees and having them leave is not training
them and having them stay.” Henry Ford, Founder, Ford Motor Company
Investing in employee training can benefit your business in multiple ways.
Train your employees in areas that will add to your business offering:If you offer social media services to your clients, ensure your employees keep
up to date with the latest trends and platforms. Your employees will appreciate
you upskilling them rather than bringing in new talent each time a
new skill is required.
Train your employees in areas they have expressed an interest in:
If an employee has shown an interest in learning about Microsoft Excel or
improving their presentation skills, invest in this training so that they feelvalued and can apply their newly acquired skill in your business.
Train your employees in areas that will enhance your working environment and culture:
Investing in a first aid course for your employees is a great way to ensure the health and safety of all your employees while offering them auseful skill and introducing an element of fun in the workplace.

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Despite the initial costs, training your employees
can also pay back your investment in the following
ways:
Training helps your business operate more efficiently as
trained employees are more equipped to do their jobs.
Training is a recruiting tool. You are more likely to attract
and retain good employees if you can offer
development opportunities.
Training promotes job satisfaction by helping employees
to develop their skill sets, in turn helping them tocontribute to and engage with the business.
Training is a retention tool by offering employees
continuous opportunities to learn and grow, you will
instill a sense of loyalty and commitment, while also
creating promotable employees.
Training adds flexibility and efficiency as you cancross-train employees in more than one aspect of yourbusiness. This is particularly valuable in a small businesswhere you often can’t recruit different people fordifferent skills.
Training is essential for knowledge transfer because if
only one person has a particular skill, you’re at risk
should they decide to leave. Set up in-house training to
spread the knowledge

How do I develop a promotion or growth plan?
A well thought out plan provides your employees with
opportunities and a clear direction on how to increase
their skills and advance their careers. And with an
expanded skill set, they have more tools to help yourbusiness grow. It’s a win-win for you and your employees.
How do I go about investing in employee training?
Step 1: Consider your business goals
Before you set objectives for employees, try to align theirdevelopment plan with your company’s needs.
Step 2: Talk to your employees
Don’t just assume you know your employees’ skill level andcareer aspirations.
Step 3: Decide what skills your employees needOnce you’ve looked at each of your employees’ abilities
and their experience, as well as your company’s needs,
decide exactly how each employee should develop.
Step 4: Create an action planNow that you know what the objectives are, it’s time tofigure out how your employees will achieve them.
Step 5: Apply the new skills in the workplaceYour employees need to be able to put those new skills towork in your business. Create opportunities where theycan quickly apply the new skills and get feedback.

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What is a company culture and how do I create/maintain an attractive one?
Company culture is the personality of your business. It defines the environment in which your employees work and includes a variety ofelements, including work environment, mission, value, ethics, expectations and goals.
“Corporate culture is the only sustainable competitive advantage that is completely within the control of the entrepreneur.
Develop a strong corporate culture first and foremost.” David Cummings, Co-founder of Pardot
Therefore, having an attractive company culture is crucial for businesses that want to keep employee turnover rates down while keeping
morale and trust high. When employees enjoy the company culture, they are likely to be happier and will perform better overall, thus
helping to improve their bottom line and reach your goals. Replacing an employee is also costly and time-consuming, so it’s important toavoid this as much as possible.
Five ways to create an attractive company culture:

Maintain open
communication. It’s
important that
employees feel thatyou share information
with them, and equallyimportant that they
feel you listen to them.

Hire the right people.
Some businesses use
personality tests to see
if a potential employee
will fit in with the rest of
the team; others get
team input on whether
the candidate would
make a good fit.

Be a good leader. Be
there to listen, guideand provide
leadership that makes
your employees feel
comfortable andbrings out the best inthem.

Empower youremployees to give
each employee somepower when it comesto making certain
decisions. This
demonstrates yourtrust in them andallows them to use
their own creative andleadership skills.

Reward youremployees because
everyone likes to berecognized when they’vedone good work. You
may not be able to afford
a big party but do what
you can to offer positive
feedback and reward
your employees for theirefforts.

Tip: A company culture cannot be created and maintained by a single person. It is a collective process that is built day by day. Though
it may be tempting for the CEO to try and shape the culture alone, the entire company must be on board and included.
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Notes

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Biz4Afrika
Visit Biz4Afrika.com© 2015 Microsoft Corporation. All rights reserved. This document is for informational purposes only.
MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY AS TO THE INFORMATION IN THE DOCUMENT.
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