HRM textbook

CHAPTER 18 MANAGING HUMAN RESOURCES IN SMALL AND ENTREPRENEURIAL FIRMS 619
* Make sure they have what they need to do their jobs. Having motivated employees
is only half the challenge. Also ensure they have the tools they need to do their
jobs for instance, the necessary training, procedures, computers, and so on.
* Constantly recognize a job well done. Capitalize on your day-to-day interactions
with employees to never miss an opportunity to give your employees the recognition
they deserve. 44
RECOGNITION Studies show that recognition can often be as powerful as financial
rewards. The personal nature of small business interactions makes it easier to recognize
employees. A short list includes: 45
* Challenging work assignments
* Freedom to choose own work activity
* Having fun built into work
* More of preferred task
* Role as boss s stand-in when he or she is away
* Role in presentations to top management
* Job rotation
* Encouragement of learning and continuous improvement
* Being provided with ample encouragement
* Being allowed to set own goals
* Compliments
* Expression of appreciation in front of others
* Note of thanks
* Employee-of-the-month award
* Special commendation
* Bigger desk
* Bigger office or cubicle
SMALL BUSINESS BENEFITS FOR BAD TIMES The recession hit smaller
businesses benefits particularly hard. 46 Thus, when the monthly cost of a family
policy for Brennan s Prime Meats, a meat wholesaler and retailer with six employees
in Brooklyn, jumped almost 30%, to $1,780, its owner switched to a less expensive
plan. Participating employees will have to absorb new co-payments and possibly pick
up half of the premium cost.
With the recession, more firms were also focusing their retention efforts on anything
they can do to get high performers to feel appreciated. 47 For example, Intuit shifted
its employee recognition awards programs from several vendors to Globoforce. The
move allowed us to build efficiencies and improved effectiveness into the programs
management, says Intuit. 48
SIMPLE RETIREMENT BENEFITS Access to retirement benefits is more prevalent
in large firms than small ones. About 75% of large firms offer them, while only about
35% of small ones do. 49
There are several ways for small firms to provide retirement plans. The Pension
Protection Act of 2006 provides for a retirement benefit that combines traditional
defined benefit and 401(k) (defined contribution) plans. 50 Only available to employers
with less than 500 employees, it exempts employers from the complex pension
rules to which large employers must adhere. The employees get a retirement
plan that blends a defined pension, plus returns on the part of the investment that plan
participants contributed. 51
The easiest way for small businesses to provide retirement benefits is through a
SIMPLE IRA plan. With the SIMPLE (for Savings Incentive Match Plan for Employees)
IRA, employers must (and employees may) make contributions to traditional