Running a business is no small feat. As an owner, you're juggling countless responsibilities, and sometimes, employee management can slip through the cracks. But never forget this one thing: your people are the backbone of your business. Getting employee management right isn't just about avoiding headaches; it's about setting your business up for success.

I've seen plenty of SMEs stumble when it comes to managing their people. It's not because they don't care – far from it. It's usually because they're so focused on keeping the lights on that they miss some critical aspects of people management. Let's dive into the 12 most common pitfalls I've observed and how you can sidestep them.

1. Turning a Blind Eye to Early Warning Signs

You know that gut feeling when something's not quite right with an employee? Don't ignore it. Maybe Sarah's always punctual, but lately, she's been rolling in late. Or John's customer service ratings have taken a nosedive. These little changes can be red flags waving at you.

Catch these issues early, and you'll save yourself a world of trouble down the line. Set up regular one-on-ones with your team. It doesn't have to be formal – a quick coffee chat can work wonders. The key is to keep those lines of communication wide open.

2. Playing the Guessing Game with Expectations

Ever played broken telephone as a kid? That's what happens when you're not crystal clear about what you expect from your team. Vague instructions lead to vague results – and a whole lot of frustration on both sides.

Never forget our starting 3'Cs (Clarity do your team know what you expect them to do?). Communication (how are these expectations passed on?). Consistency (do you as the leader always act consistently to all staff?)

Spell it out for your team. Whether it's job responsibilities, performance targets, or company policies, get it in writing. An employee handbook might sound fancy, but it's just a clear guide that keeps everyone on the same page. Trust me, it's a lifesaver when things get sticky.

3. Skimping on the Paper Trail

Paperwork for some is about as exciting as watching paint dry. But let me tell you, good documentation is like a shield for your business, it can be your best friend, so don't skimp on it! When employee issues crop up (and they will), you'll be glad you kept those records.

Start simple. After a meeting, a discussion, a pep talk, a even a verbal warning, shoot off a quick email summarising what was discussed. Use tools like Google Docs or even a good old-fashioned notebook to keep track of performance issues or praise. Future you will thank present you for this habit.

4. Playing Favourites (Even Unintentionally)

In a small team, it's natural to click with some folks more than others. But when it comes to applying policies, you've got to play it straight down the line. Consistency is key, or you'll find yourself in hot water faster than you can say "unfair dismissal."

Create a decision-making checklist for common scenarios. It might feel a bit rigid at first, but it'll help you treat similar situations similarly, no matter who's involved.

5. Putting Training on the Back Burner

"We're too busy for training" – I've heard this one a lot. But here's the thing: neglecting employee development is like refusing to change the oil in your car. It might seem fine for a while, but eventually, things will grind to a halt.

Training doesn't have to be expensive or time-consuming. Think lunch-and-learns, online courses, or even job shadowing. The payoff in terms of productivity and reduced mistakes is worth its weight in gold.

6. Rushing Through Disciplinary Actions

When an employee messes up, it's tempting to want to sort it out quickly and move on. But hasty disciplinary actions can backfire big time. Take a deep breath and follow a fair process.

Investigate thoroughly, give the employee a chance to explain, and consider all angles before making a decision. It might take a bit longer, but it's better than facing an unfair dismissal claim down the road.

7. Forgetting the Human Touch in Disciplinary Procedures

Disciplinary procedures aren't just about following rules – they're about dealing with people. Remember, your employees are human beings with feelings and rights.

Always inform employees of their right to bring a colleague or representative to disciplinary meetings. Offer support, be it through an Employee Assistance Program or just a sympathetic ear. It's not just the right thing to do; it also helps maintain trust and respect within your team.

8. Overusing Suspensions

Suspending an employee might seem like a quick fix, but it's a serious step that can damage morale and productivity. In a small team, losing even one person can throw everything off kilter.

Before you suspend someone, ask yourself: Is there another way? Could they work on a different project or from home while you sort things out? If suspension is unavoidable, keep it as short as possible and communicate clearly throughout the process.

9. Wearing Too Many Hats in the Disciplinary Process

In a small business, you might be tempted to handle every step of a disciplinary process yourself. But wearing the hats of investigator, judge, and jury can lead to biased decisions – even if you don't mean to be unfair.

If possible, have different people handle different stages of the process. Can't manage that? Consider bringing in an external HR consultant for serious cases. It's an investment in fairness and professionalism.

10. Treating Appeals as a Nuisance

Nobody likes their decisions questioned, but appeals are a crucial part of a fair disciplinary process. They're not a sign that you've done something wrong – they're an opportunity to double-check that you've been fair.

Set up a clear appeals process and take it seriously. If possible, have someone who wasn't involved in the original decision handle the appeal. It shows your commitment to fairness and can sometimes bring new information to light.

11. Not Learning from Past Mistakes

Every disciplinary issue is a chance to learn and improve. Did a misunderstanding lead to a problem? Maybe your communication needs work. Was a policy misinterpreted? It might be time for a rewrite.

After each disciplinary process, take a step back and ask what you could do better next time. Continuous improvement isn't just for your products or services – it applies to your people management too.

12. Neglecting Your Company Culture

Your company culture isn't just about having beanbags in the office or Friday drinks. It's the invisible glue that holds your team together. When you're dealing with disciplinary issues, it's easy to forget the impact on your wider culture.

Keep the big picture in mind. How you handle difficult situations sends a message to your whole team. Strive for a culture of fairness, respect, and open communication. It'll make handling those tough conversations a whole lot easier.

Conclusion:

Managing people isn't always smooth sailing, especially when you're at the helm of an SME. You're going to hit some rough waters – that's just part of the journey. But by avoiding these common pitfalls, you're setting yourself up for smoother sailing ahead.

Remember, good employee management isn't about being perfect. It's about being fair, consistent, and always striving to do better. It's about seeing your team as your greatest asset and treating them accordingly.

As you navigate these waters, don't be afraid to ask for help. Whether it's chatting with other business owners, consulting with HR professionals, or investing in some management training for yourself, there's always room to grow and improve.

At the end of the day, how you manage your team can make or break your business. Get it right, and you'll build a loyal, motivated workforce that'll help your business weather any storm.

But here's the thing: you don't have to go it alone. That's where we at AHGms Ltd come in. We've got the expertise to guide you through every aspect of employee management, from setting up robust systems to handling complex disciplinary issues.

Whether you need us to manage the entire process or just want an independent expert to step in at a crucial moment, we're here to help. We can be your lifeline when you're dealing with tricky situations, your sounding board when you're unsure, and your guide to building a stronger, more effective team.

Don't let employee management challenges hold your business back. Reach out to AHGms Ltd today. Let's have a conversation about how we can support you in creating a workplace where both your business and your people can thrive.

Remember, investing in proper employee management is investing in your business's future. With AHGms Ltd by your side, you can turn potential HR headaches into opportunities for growth and success.

Take the first step towards better employee management. Contact AHGms Ltd now and let's set your business on the path to success. Your team – and your bottom line – will thank you for it.