It does not matter how much you pay them, give them mentorship, opportunities etc. Life changes and so do people. Plan for their exit and always have a 2nd in place who is capable.
First we would not hire friends and family. Second, we would be more demanding of employees and not treat them as friends. We would have been more productive if we were somewhat sterner.
I would have a “no jerks” rule and use the probationary period to fire jerks, no matter how talented and skillful they may be.
I would not do an ESOP – there are simpler and more effective ways to share ownership with employees.
Pick an acronym common in your industry and ask your accountant if (s)he knows what it means. If they do not, then you are using the wrong accountant.
I kept employees too long after the downturn. Should have laid people off early 2009 and did not do so until 15 mos. later.
Don’t hire part-time employees thinking you’ll save money over a full-time employee. Part timers have somewhere else to be and are less productive than the person trying to impress you to move up the ladder.
I thought employee management would be easy – it’s not. Take extra HR classes and be prepared for tons of employee drama.
Don’t have too many junior employees or trainees at one time.
Never hire someone who is less intelligent than you.
Be kind to people always.
Fire a disgruntled employee. Today. They poison the well and will never be happy, no matter what you do for them.
Not firing my partner when I knew it would be best for the business, in order to be fair to him. I should have let him go and continued on with the company I built.
Don’t think you are befriending your employees. They do not think of you as a friend and are there for one reason – to earn a paycheck. When they laugh at your jokes, it’s because they are plotting their next raise.
Don’t under-value your staff. Getting the right group of people who are self motiviated to get the job done, even if you have to pay them more, is what works best.
Never give a lot of details about family, friendships. Be very neutral as it can be used against you in certain scenarios.