By definition the entrepreneur is one who takes risks; the smart entrepreneur and business operator takes calculated risks. Most have a business plan, have consulted with an accountant. However, in one area of tremendous liability and pitfalls, smaller businesses fall short in their planning and control employment relationships.
The relationship makes small business very successful in terms of trust and loyalty. But still in India small business doesn’t provide much emphasis to the employee relationship and welfare, because of which small business tend to face high employee turnover. Many Indian entrepreneurs feel that due to high population of unemployment provide them advantage of bargaining as low as possible wages as others are ready to take the place of the person who is leaving.
The following issues can escalate the employee relation problem:
- Lacking policies and procedures.
- Absence of job descriptions.
- Misclassifying employees as exempt when they may be nonexempt.
- Inconsistencies in the application of policies (or actions which become policy).
- Giving preferential treatment to an employee or group of employees.
- A lack of documentation.
- Not evaluating performance.
- Low wages
As many small scales are unorganized facing fund shortage very less focus has been put to organizing the human resource department.
The following things can be done to avoid employee relation problem:
- Explaining the policies and procedures in simple language and with confidence of its implication.
- Helping the employee with complete job description and even if multi tasking is required.
- Business policies should be taken very much seriously in terms of its application which will be having cascading effects on the employees
- Equal status should be given to each & every employee working to install fair game play in the business.
- Small scale business should update on themselves from paper based to paper free organization which will lead to free flow of information.
- Even an BPO jobs requires job appraisal every six months so why not small scale business even they have semi-skilled workers doing multi tasking job so why not job appraisal and performance evaluation in small scale business.
- Small scale business should follow minimum wage policy of government.
“Relations are simply a tedious pack of people, who haven't the remotest knowledge of how to live, nor the smallest instinct about when to die
Indian small scale business has to understand the importance of employee relations which help them to sail through bad times and come out clean as never before. By Nilesh Shah:):)
Laurent & Benon Management Consultants Ltd, a public limited company with its corporate office Gurgaon with multiple branches. We as an organization strive to offer the right Human Resource Solutions at the right time and enable our clients to enhance the net worth of their human resource capital. For further information Please visit us at http://www.laurentandbenon.co.in/