HR Pitfalls Series: 4/5........No need to worry about pay and benefits, we're a small business.
We work with small businesses on their people management challenges. In this series we thought we would share some familiar HR pitfalls and offer some advice on how to avoid them.
You know people have joined your company because they like the idea of working for a small company, in an autonomous role where they can put their own stamp things. This means they aren't remotely concerned about pay and benefits doesn't it? Actually it doesn't! Here are some things even small businesses should be doing.
To start with, you must pay minimum wage, that is the law and our recent FAQ on National Minimum Wage will tell you everything you need to know. Now, although you may not have the budget to compete with the big players in your industry, you do have the flexibility to be creative. As a starter, we like self funding commission schemes where possible as they are a great incentive which won't tie up your budget. Additional time off (beyond the 28 statutory days) is also a good option, think about a day off on their birthday or closing down between Christmas and New Year when its usually quite anyway. If you are looking to save the company a bit of money, salary sacrifice benefits are great too - ask us about how these work as they a bit too complicated to explain in a short post. Finally, offer your team flexibility to work remotely, go to the gym during the working day and to adjust their hours to accommodate outside activities or childcare - Large corporates generally find it tough to do this so they will rarely be able to compete.
Pay and benefits is a complicated area so if you are looking for some specialist advice, get in touch. We will also be publishing a short series of posts on benefits for small businesses next month so keep an eye out for those.
Follow us to see the final instalment of the HR Pitfalls Series: 5/5........If we ignore the poor performer, they'll go away.