Other
Aug 8, 2022

Good to Grow: Compliance and Cultural Considerations for Small Businesses

Sponsored Content provided by Insights On - ,


Growing a company looks different or every small business owner but hiring and keeping the right employees are consistent challenges. Each step from a small, like-minded group of collaborators to a diverse workforce with a variety of roles, skills and personalities requires mindfulness. Let’s break the “zero to 60” discussion into four phases. Each stage is unique, and the organizational structures, CEO priorities, staffing challenges and key regulations are different.

PHASE 1: 1 TO 10 EMPLOYEES 
As the owner begins to add people, hiring carefully is critical. Ideally, you need people who are secure in a smaller company and who can take on more responsibility as the company grows. To get to the next level, all staff must understand and feel like a part of the plans to grow the business. They should know their role but be comfortable with the idea that with growth comes change. 

The other complexity that arises with added employees is state and federal legislation. The primary compliance laws that come into play during this phase include:

•    Fair Labor Standards Act (FLSA)
•    OSHA
•    Equal Pay Act
•    Immigration Acts
•    Polygraph Protection
•    Other laws protecting jurors, veterans, union activities and health insurance portability
•    Other considerations and
state specific laws including unemployment, workers compensation, Wage Payment, Retaliatory Discrimination, New Hire Reporting, etc.

PHASE 2: 11 TO 19  
We see the beginnings of an organizational structure. Not everyone reports directly to the CEO anymore. The CEO may see their “team,” the people that started the company, may no longer be a fit. Letting go of these people or placing them in different roles is painful but getting to the next stage may depend on it.

Here, we add two more regulations:

1.    Civil Rights Act (15 employees)
2.    Americans with Disabilities Act (15 employees)

PHASE 3: 20 TO 34
The organization now transitions from being CEO-centric to having its own “identity”. It is time to consider creating a set of values that describes the organization’s expectations. The CEO is required to focus on regular and effective communication more than ever. Employees expect information from their manager rather than directly from the CEO. Messages must cascade efficiently and accurately to ensure unity.

During this phase, add:

1.    The Age Discrimination in Employment Act, or “ADEA” (20 employees)
2.    Consolidated Omnibus Budget Reconciliation Act, or “COBRA” (20 employees)

PHASE 4: 35 TO 60
The formal documentation of processes and key systems provides the foundational building blocks to manage here. The company is growing up. Experienced managers must provide employees with tools, guidance and regular feedback. Processes must be formalized, since remembering “what we did last time” is no longer effective.

Your employees feel less frustrated, work fewer hours, and are more productive in Phase 4. If you’ve hired poor managers (“doers” instead of 
“leaders”), you’ll find good employees leaving.

During this phase, add two regulations:

1. Family Medical Leave Act (50 employees)
2. The Affordable Care Act (50 employees)

SUMMING UP
The zero to 60 process is exciting and sometimes frustrating, but one thing stands true: good hiring is key to successful growth. Managers shouldn’t just be hired for skill but also for the potential to lead confidently. They should share their vision beyond day-to-day tasks while investing time, developing relationships and coaching teams.

Catapult Members have access to experts skilled in HR and the business of people. From talent recruitment to employee retention and customized professional development, Catapult is your trusted partner. Focus on organizational priorities with confidence knowing your business is compliant, competitive and empowered.
 


Catapult™ is your employer’s association dedicated to educating and inspiring the working world. By solving your HR and employment law challenges as our own, we ensure Member companies are places people are proud to work. With a Catapult Membership unlock exclusive discounts across our portfolio of services, special employee and team trainings, and access to peer networks (and so much more!) to propel past the competition.
 

Other Posts from Insights On

Ico insights

INSIGHTS

SPONSORS' CONTENT
Jasonpathfinder3

What You Need to Know About SECURE 2.0 and Its Effect on Retirement Plans

Jason Wheeler - Pathfinder Wealth Consulting
Untitleddesign7

Mastering ARC Applications: Best Practices for HOA Board Members

Dave Orr - Community Association Management Services
Dave sweyer 300 x 300

Insights into the 2023 Leasing Market in Wilmington, NC: What You Need to Know

Dave Sweyer - Sweyer Property Management

Trending News

Passenger Rail Study Offers New Details About Proposed Wilmington To Raleigh Route

Emma Dill - Apr 22, 2024

Severe Weather Postpones Trump Rally In Wilmington

Emma Dill - Apr 20, 2024

Will NC Be CNBC's Three-time Top State For Business?

Audrey Elsberry - Apr 22, 2024

In The Current Issue

Surf City Embarks On Park’s Construction

“Our little town, especially the mainland area, is growing by leaps and bounds. So having somewhere else besides the beach for kids to go an...


Info Junkie: Lydia Thomas

Lydia Thomas, program manager for the Center for Innovation and Entrepreneurship at UNCW, shares her top info and tech picks....


With Coffee And Cocktails, Owners Mix It Up

Baristas are incorporating craft cocktail techniques into show-stopping coffee drinks, and bartenders are mixing espresso and coffee liqueur...

Book On Business

The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2024 Power Breakfast: The Next Season