Current reports indicate economic growth in the 3rd and 4th quarters and continuing improvements as we move into 2010. However, despite some early optimistic views of 2010,  current research clearly shows that small and medium sized businesses, are taking a “wait and see” approach when making strategic decisions regarding expansion, hiring and other business expenses.

The Bad News

Lagging economic indicators like employment rates are still dismal. National unemployment rates are over 10% (in California it is 12.3%) and the Federal government has created great uncertainty with continuous discussion of health reforms, interest rates, and small business lending. This turbulence directly affects many companies’ management who require stable market conditions to make intelligent business decisions. The overall sentiment is that the recession is not quite over and pessimism prevails among many small business owners.

Looking at the Bright Side

On the other hand, the Labor Department said in early December that although employers continued to shed jobs in November, they only cut payrolls by 11,000 jobs, the fewest since the recession began in December 2007. The department also said the average workweek rose and the temporary-help sector expanded for the fourth month. Aside from the silver lining in the slowing tide of job losses, leading indicators like the stock market are also telling a happier story. Last January the Dow Jones Industrial Average was under 9000. Today, it trades well over 10,000. Significant market movement can be seen as a predictor of the overall direction the economy is headed.

What does this mean for Small Business?

With all the uncertainty 2010 offers, it is clear that small employers must continue to find ways to reduce costs, increase productivity, and look to rebuild lost talent. However, with all the demands of digging out of 2009, many multiple-hat wearing owners find the prospects daunting. One of the hottest trends throughout the recession is Human Resources Outsourcing. HR Outsourcing firms have the internal staff and know-how to assist small companies in all three of the above-mentioned areas. And they can it quicker, simpler, and more cost-effectively than a small business could do on their own. In our next posts we will review how HR Outsourcing firms can assist in these three areas.

In our last post, we reviewed the Pros and Cons of permitting employees to telecommute. Telecommuting is a great way to increase productivity and save the company money; however, there can be some risk, so finding the right balance of benefit and risk is crucial.  Here are 5 tips for managing telecommuters, which can help ensure that the telecommuting experience is a productive and successful one.

1.     Have clear guidelines for the telecommuting program.

The guidelines should indicate to employees and managers what the criteria are for selecting telecommuters, how to request consideration as a telecommuter and what the requirements are for ongoing participation.  You should also have a “telecommuting contract.”  Include hours the employee is expected to be available by phone or e-mail, times the employee will need to report in to the office, equipment that will be provided by the employer, safety issues, performance expectations, training, etc.
2.     Clarify the “ground rules” for the telecommuting relationship

Telecommuters must be measured on results and the attainment of established goals.

3.     Have a formal training program

Training of both telecommuters and their managers is essential.  Training should focus both on the technical aspects of telecommuting (how to use the equipment, etc.) as well as the relationship aspects (how and when to contact the office).

4.     Make your expectations clear

Be clear and specific about your expectations in terms of the output you expect from telecommuters.  Consider ways that you can quantify the deliverables you will expect.

5.     Communicate!  Provide frequent and constructive feedback

Since telecommuters are away from the office and not part of the informal communication and feedback process that often takes place between managers and employees, it is important to establish formal channels and processes for providing feedback on performance.

A well crafted and balanced telecommuting policy can go a long way in establishing a positive working relationship with your staff, saving your company money, and increasing corporate productivity and efficiency. If you require assistance in creating a policy, please contact our Human Resources Consulting department to schedule an appointment.