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Guidance

Managing employees in a small business

Managing employees in a small business

Managing your staff effectively can help your business reach its full potential.

When you are running a small business, the time, budget and resources can sometimes be hard to find to effectively manage your employees.

Here are some ideas to consider to help your business, and the team you have working for you, reach full potential. 

1. Hire the right people

Choosing the right people to join your business can create a good team culture and boost staff performance. Consider the following when making your next hire:

  • Is this person passionate and do they share your vision for the business?
  • Does this person have the right skills for the job?
  • Have you completed thorough reference checks, even reviewing social media? 

2. Prioritise training

Training your staff can be one way to invest in their personal development and may contribute to increased performance in your business. If external courses and workshops are too expensive, training can be done on a budget by:

  • Arranging monthly lunch sessions where you share your knowledge on a particular topic
  • Asking employees to train others – an employee who has strong skills in a certain area can share their hints and tips with new employees

3. Be clear and open with communication

Clearly communicating your expectations of employees’ responsibilities can help your team make decisions and collectively work towards business goals. Your team can focus on their tasks, knowing exactly what's needed. 

Ask for open communication between yourself and your team. You could receive valuable ideas on how to improve your business. Think about how you might involve your staff in the decision making processes where possible and give them ownership of tasks.

4. Support your staff

Aim to create a culture in the workplace that motivates staff. Recognise that different people are energised in different ways. Building a good relationship between you and your employees can help to foster a good team spirit.

5. Offer rewards where possible

Rewarding staff doesn’t always have to be about increased remuneration. You could also consider:

  • Flexible working hours
  • Public acknowledgement 
  • Casual dress days

6. Take care of your employees’ financial contributions 

As an employer, you need to ensure you are meeting your employee’s tax and superannuation obligations. You can find the latest details of what's required at the Australian Taxation Office website.

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. You should consider seeking independent financial advice before making any decision based on this information.