human resources Archives

Startups: Six HR Steps You Can Do Now

When do you need HR? As soon as you hire an employee. If your business, however, is like most businesses, you can’t afford to hire an HR person at the same time you hire your first employee. If you could, you’d hire two employees to generate more revenue. That doesn’t mean that you don’t need to begin to establish the HR function in your company. Here are 6 things you can do until you can afford to hire The Grange 1. Just a Little Study a. Take an hour and read about the basic employment laws that pertain to companies with 15 or fewer employees. Here’s what you need to find: The Fair Labor Standards Act (FLSA), Minimum wage laws in your state, the Immigration Reform and Control Act (IRCA), Title VII of the Civil Rights Act, and the Americans with Disabilities Act (ADA). Just learn the basics so you know how to be compliant. Some may not officially apply to you yet, but you want to be compliant anyway. 2. Establish a clear Vision, Mission, Values. a. If you can’t verbalize or write why you’re in business you can’t share it with employees. If you want employees to focus on your goals, they have to know what they are and how you want it done. A vision, Mission, Values statement does just that. 3. Focus on your vision. a. Gear everything in your business towards your vision by achieving your mission. Eliminate anything in your business that doesn’t fulfill your vision by achieving your current mission. If it doesn’t fulfill your vision, you shouldn’t be doing it. If you don’t have this focus, how do you expect your employees to have that focus? 4. Policies a. Write down a series of rules your employees can rely on. Things to include are what time to show up, when they get paid, what holidays they’ll get paid for, what happens when they work more than 40 hours a week, how much paid time off (if any) they receive and anything else that you feel are good sign posts that will guide them. Don’t include performance metrics etc. Details are a double edged sword. Any policy you write down, you are legally obligated to follow. 5. Compliance a. Make sure you have a specific and reliable way of paying people, you know how to complete I9 forms, you issue the correct tax documents, and make sure you pay above minimum wage. Be sure not to discriminate against anybody for any reason other than their performance. Worry about benefits later. If you can afford benefits, you can probably afford HR. 6. Treat Everybody the Same a. If you do something for one person, anybody else in that same situation needs to be treated the same. Call The Grange when you need help. That is doubly true when an employee makes a complaint to you about anything that you feel may relate to a legal issue (pay, discrimination, harassment, etc). When you’re ready, we’re here for you. Give us a call and we’ll get you the information in a way that is helpful and cost affective. But do it right, do it now!

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HR Doesn’t Have to Suck

Current Topics, Strategic HR / TonyB

Most HR People Suck. Seven years ago, I stood before a crowd of 300 to 400 HR professionals and started my presentation with that phrase. Every day, when I met with potential clients, I got the same reaction: HR was necessary but seen as a cost center—not worth paying extra for and meant to do little more than keep the company out of court. At that time, HR professionals were still reeling from Fast Company’s article, “Why We Hate HR,” even though it had been published more than seven years earlier. They clamored for a seat at the table but struggled to justify it. Most HR courses and seminars, even those billed for experienced professionals, focused on compliance—how to adhere to specific laws and properly complete I-9 forms. We’ve come a long way since then, yet, in many ways, not far at all. Recently, LinkedIn has been full of posts pontificating on variations of “Culture isn’t HR’s job; it’s the CEO’s.” The authors of these posts vent their growing frustration with corporate virtue signaling companies publicly claiming to value employees while internally fostering toxic cultures. They point fingers at leadership and demand accountability. The problem is: HR does own the company’s culture. HR owns culture in the same way a CFO owns the financial health of a company. If a CEO refuses to follow the advice of the company’s culture expert, they are making the same mistake as ignoring the CFO’s financial recommendations. So, what should an HR professional do when company leadership refuses to take direct steps to improve workplace culture? They should resign.. “HR owns culture in the same way a CFO owns the financial health of a company.” However, many HR professionals refuse to resign or seek employment elsewhere, even when their best recommendations are ignored. If you work at a company riddled with red flags, and leadership dismisses your concerns without meaningful action, why are you still working there? They don’t value your input. Eventually, the company will pay the price, and your professional reputation will be tied to that failure. Leaving a job is scary, but being another mediocre HR professional is just as bad. No wonder employees think we suck at our jobs—we espouse high ideals yet provide little more than a fig leaf for toxic work cultures. There are many reasons HR falls short of success, but this is one of the biggest: we don’t demand competence from leadership. CEOs who don’t implement sound management practices don’t value sound management practices. CEOs who don’t require their managers to implement them don’t value them. CEOs who ignore good business advice regarding culture don’t value culture. Culture is king, and it is the responsibility of HR. We don’t need to complain about it on LinkedIn, point fingers, or abdicate our responsibilities. In short, we don’t need to suck.

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The Org Chart is Queen

Strategic HR / TonyB

As businesses grow, organizations develop informal ways of sharing information that are often unplanned, organic, and subject to change.

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Culture is King

Strategic HR / TonyB

The importance of culture seems to be axiomatic lately. I hear how important culture is everywhere from HR conferences to broadcasts of NFL games. Everybody seems to understand the idea that culture is important. Is it really? First, let’s define what is meant by culture. Culture is the sum of all interactions within an organization. OK… that’s easy to say, but what does that look like in practice? If most communication with employees is managers giving dictates and not asking for input from front line employees, it means that part of the company culture is a top down command structure where employees don’t have input into decisions. Think of it as the graphic showing your volume on your phone. It’s not all on or all off, it’s usually somewhere in between. How much influence that one particular aspect of your company culture has on the outcome of your business is relative to the other aspects of your culture. Then let’s define “good company culture”. This gets a little more difficult because not all organizations play in the same arena. For example, a “good” culture working at Minky Couture is probably very different from a “good” culture at the Chicago Bears. Therefore, a “good company culture” has to be defined as the culture that produces the best results for the organization over time. It’s important to note however, as Jim Collins points out in his landmark book Good to Great, that cultures can sometimes produce incredible results over a period of time, but not be able to sustain them. For the purpose of this article, we’ll note that a “good culture” is one that facilitates the successful achievement of the company’s objectives over a long period of time. Of course, all of this points out the nuanced nature of culture and how difficult it is to quickly assess it until you’ve lived it. It is possible, however, after some study, to find commonalities between successful cultures that seem generalized across industry and time. If that is done, we begin to see how important culture can be. Examples of this abound. According to a research study published by the Society for Human Resource Management (SHRM) in December of 2024, 57% of employees who rated their culture as poor said that “they are actively or soon will be looking for another job.” While the study didn’t mention who those employees were, I think we can reasonably assume they are the employees who are most likely to get another job. In other words, they are better performers over all. SHRM also noted that more than a quarter of employees who found their company culture lacking, said they were “burned out.” In the light of this, an argument could be made that Jim Collin’s work, more than anything, underlined this one fact: all success is downwind of culture. Employees who are “engaged” are more productive, more efficient, and solve problems on their own instead of taking it to leadership for a solution. They are, in short, focused on their jobs and giving it their full attention with the goal of improving it. They look to build the organization and take personal satisfaction from doing so. As Sunnie Giles notes in her book, The New Science of Radical Innovation, this is a fundamental component of companies that radically transform their industries. It can’t be done without engaged human capital revolutionizing processes to produce a better result. If all of this is true, the natural response from managers should be to make culture their highest priority. Do nothing to damage it, do anything to enhance it, and then nurture its growth. In short, culture is king.

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Why Do HR Correctly?

Strategic HR, Why HR / TonyB

Not sure if you need HR yet? You do. As a matter of fact, you’re probably late. Do you have HR on your payroll but aren’t seeing anything from it but red tape and expenses? Maybe you’re not sure what HR contributes to your bottom line other than a reduction of liability (compliance). Human Resources is the art of management. Your company’s future is only as bright as the people working for it. Does the future of your company, then, only rest on how good you are at identifying good employees in the interview process or is there more to do? If you buy a machine that is rated to make 100 widgets an hour, do you accept it when you only get 80 an hour? Do you get rid of the machine and buy a new one? Of course not, you have too much invested in the purchase of the machine to simply toss all of that aside and get a new one. By my calculation the cost of hiring an employee is, at a minimum, half of the annual salary associated with the position you’re filling. Then why is that the approach that so many businesses take when they hire people? It’s because they don’t understand the power of engaged employees who actively solve problems, find new ways to accomplish company goals, and grow more efficient over time. That is the role of Human Resources. You can’t change the oil, reset the gears, or reprogram employees like you can machines, but you can develop their talents and increase their productivity over time. Human Resource professionals in your organization are there to help managers do that. All of the areas that HR manages such as benefits, perks, policies, and pay are only tools that HR uses to ensure your employees become more productive over time. I’m famous for starting speeches with the phrase “most HR people suck”. If your HR team isn’t actively improving the efficiency of your human capital, you need to reexamine HR’s role in your company. …And that’s why The Grange is here.

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The Role of Human Resources in Modern American Business

Uncategorized / TonyB

“I like the way your predecessor did parties, I like how you do HR.” One of the greatest compliments I’ve ever received was when my COO said this to me after my predecessor visited her office. It was just over a year after I started working for the company and, I have to admit, I was a little insecure about what my COO thought of the dramatically different way I ran the company’s HR department. The statement came with a lot of relief and, more importantly, validation for what many people would see as a very unorthodox style of Human Resources. One of my favorite quotes, from the TV show The Office, is a quote by Michael Scott, “If I had a gun with two bullets and was in a room with Bin Laden, Hitler, and Toby, I’d shoot Toby twice.” It exemplifies the way Human Resources is largely perceived in the United States. HR is perceived as a “rent taker” (somebody who makes money from the process, as opposed to somebody that generates money by creating value). I was reminded at several companies I worked for, some very supportive of employees and some not, that the HR function was a cost center. I was told that it was a necessary and important cost center, but still a cost center. I was reminded that HR didn’t generate any revenue, create a product, or improve the intellectual property of the company. “The true role of Human Resources, however, has very little to do with the notion of providing customer service to either employees or management.” Shockingly a lot of HR professionals see the function the same way. In their minds, the department provides a buffer between itself and ever increasingly complex regulation that can damage the company seemingly without warning. This was exemplified when I saw a Vice President of HR talking to a group of employees and reassuringly telling them that they could count on the HR department because “We see you as our customers. Just like the company has customers, you’re our customers. We’re here to help you.” The sentiment is well meaning but, like most broad, generalized statements, it betrays the underlying assumptions associated with it. In this case, the underlying assumption is that “we perform transactional work that makes your work easier or supports you as an individual.” Stop and think about that for a moment. The HR department takes a burden off of you, so that you can perform your work. We get you benefits, perks, and ensure that the company complies with laws that protect you from the company. We process paperwork like payroll and help you resolve issues when they arise. A companion statement to leadership is that we’ll protect you from your employees and take care of all of the paperwork associated with them. With that kind of mentality, it’s easy to understand why senior leadership at the C-suite level doesn’t feel the need to involve Human Resources in large scale executive, strategic, decision making. It’s easy to see why Fast Company covered its magazine with the headline “Why We Hate HR” above a drawing of a small girl cutting up her dollies. The message is visceral, “you’re strange, threatening, and don’t provide anything substantial.” The true role of Human Resources, however, has very little to do with the notion of providing customer service to either employees or management. HR does provide services to employees and managers alike, but that isn’t its core function. Does your accountant just pay your bills and count where your money went? Of course not. While accounting does pay the bills, tracks money, and files taxes, it also helps you find efficiencies in your operations, organizes resources for growth, strategically recommends ways for the company to grow, and provides a window into what the future may hold for the company. If accounting didn’t do all of those things, you wouldn’t want them in senior leadership because they wouldn’t provide any value outside of reporting. HR is no different. HR is the art of management. It should provide executive leadership with insight into the company’s greatest asset and largest cost, human capital. It should provide forecasts and explanations for why employees produce what they produce, should develop leadership to better facilitate productivity and efficiency, and train leadership at all levels on how to maximize the company’s largest asset. It is becoming increasingly clear that companies who understand the strategic role of HR outperform those who do not. It is increasingly obvious that culture is king, the org chart is queen, and becoming a vision driven company are the underpinnings of success in the modern economy. Ironically, that is the role of HR in modern American business. Yes, parties are a part of that (one that I probably need to be better at), but they aren’t the central function of HR.

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