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6 Crucial Employee Management Tips for Small Business Owners

Simon Osuji by Simon Osuji
October 19, 2023
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6 Crucial Employee Management Tips for Small Business Owners
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You took a leap of faith when you made the decision to start your small business, so hats off to you!

From forging on in spite of discouraging statistics about the low survival rate of startups, to doing all you can in an environment that isn’t half as enabling as it should be, you’ve made it thus far and we applaud you for your resilience.

Knowing fully well that there’s no scarcity of challenges you face daily as a small business owner, we’d like to share some tips that will ensure you get the core aspect of your business right- employee management.

These 6 crucial tips will help you turn your employees into success partners through effective management:

  1. Keep them in the loop: Maintaining an informed workforce is the bedrock of optimal employee engagement and excellence. This is because employees that know better do better. Keeping even the most mundane details of your business as classified information does nothing but leave your employees feeling like strangers to the business. On the other hand, sharing regular business updates, wins and even loses gives employees a sense of belonging and a higher sense of responsibility. This impacts positively on their commitment to the success of your business and improves overall productivity. So, don’t keep secrets!jobberman skills assessments
  2. Don’t micromanage your employees: Investopedia defines a Micromanager as “a boss or manager who gives excessive supervision to employees. A micromanager, rather than telling an employee what task needs to be accomplished and by when will watch the employee’s actions closely and provide frequent criticism of the employee’s work and processes.”

Does that describe you? We understand it can be difficult to let go of the little things because you have worked hard to be where you are today but it is important that you make the necessary adjustments. 

younger boss

Micromanaging employees leaves them feeling incompetent, not trustworthy, overly dependent (unable to make decisions on their own), and in some cases aggressive and unhappy. Showing that you trust your employees to do the work you hired them for boosts their confidence. Hiring right, setting clear objectives, success metrics, accountability structures, and effective task delegation are better approaches to employee management, as opposed to micromanagement.


3. Don’t show or encourage favouritism: A common form of favouritism that is often preached against is the one related to parenting. But did you know that giving preferential treatments to certain employees is just as disadvantageous? Employees in small businesses tend to work in clusters, and this could easily lead to manager-employee or employee-employee bonding. For managers or business owners, this special interest can be because a particular employee is excellent at their job while for co-workers, it could be as a result of shared interests. 

Whichever way it is, judgements can become clouded to the point that perks and benefits are no longer distributed evenly, with the ‘favoured’ employee getting the bulk of it. This could lead to an increased feeling of resentment, low morale, demotivation among other employees. It’s important to take the lead here by making sure you model a fair and open system of reward and employee appraisal. 

4. Keep your promises:  It’s important to consider all the options and make adequate projections before you create your employee compensation or benefits structure. The last thing an employee wants to hear at the end of the month is excuses for delayed salary payment. Owing salaries is one of the fastest ways to land in the low employee retention rate trouble- a huge problem that a small business like yours cannot afford. 

Don’t make promises you can’t keep and be transparent enough to offer compensation that is commensurate with the value your employees are bringing to the table. This is a sure way to keep everyone happy ????

5. Show commitment to their development: It’s important to encourage your employees to constantly look for ways to improve their knowledge and skills. However, don’t stop at encouraging them, take this a step further by organizing regular internal training/learning sessions. You can also take advantage of training that won’t cost you a dime like the Jobberman Soft Skills training. 

Having a trained workforce is a win-win situation for everyone- your employees are able to do their jobs more efficiently and effectively while your business is better positioned to achieve optimal ROI.

6. Don’t forget benefits: Other than their monthly salaries, employees want to know what benefits you have to offer. Offering benefits to your employees is important because it shows them you are invested in not only their overall health but their future. A good employee benefits package can help to attract and retain talent. Also, benefits can help you differentiate your business from competitors.

Employees are the greatest assets of any business, irrespective of size. Hence, for a small business like yours, extra attention must be paid to not only getting great talent but managing them as they play a pivotal role in the success of your business. 

Don’t forget, getting great talent is the foundation on which other success factors will be established.

Are you looking for the right partner to help you hire better, faster, and for less? We are up to the task. Visit https://www.jobberman.com/hire-the-right-way 

For more helpful resources on managing talent, visit the Employer’s Corner 



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