Whether you are managing one or ten employees, as an entrepreneur you must understand the basics of human resource management to do a good job. Most businesses find that managing their employees effectively can be a challenging matter.


  • Low Productivity.
  • Tardiness - habitually getting to work late or working at a slow pace.
  • Poor customer skills - Not dealing with customers in a timely and professional manner.
  • Lack of skills to get the job done.
  • Poor quality work.
  • Poor/negative attitude.

Many human resource problems start with hiring the wrong persons. There is no guarantee that the person you hire will work out for your business. Therefore, it pays to have a written policy that you can refer to when
recruiting or just in case things don’t work out.


  • Have a clear definition of the job you want the employees to undertake in terms of key responsibilities, duties and tasks.
  • Have a written job description for each position within your business.
  • Know the skills, experience and education the person must have to perform the job successfully.
  • Do background checks if necessary.
  • Tell the candidates what you expect from them. Specify behaviour that you would not tolerate.
  • Inform candidates of any penalties they might incur if their actions are not in keeping with your business policy.
  • Draw up contracts of employment and have employees sign them.
  • Define the standard hours of work, including breaks for lunch.
  • Note the method of payment and state when wages would be paid.
  • State how much vacation leave employees are entitled to.
  • Define the basis for termination of service and policy for severance.
  • Explain dress-code, safety rules and regulations, policy on the use of business tools and equipment, telephone and internet.


  1. Offer discounts when employees do business with you.
  2. Increase wages overtime.
  3. Have different pay levels for positions in your business.
  4. Create situations for promotion.
  5. Change job titles so that employees know they are progressing.
  6. Organise and encourage training and personal development for your employees. Training helps to increase productivity and efficiency, develop greater self-worth and reduce staff turnover. Become a coach.
  7. Establish a set of procedures for dealing with employees grievances.
  8. Pay NIS (National Insurance Services) contributions for employees.
  9. Praise employees for good work. Let them know that you value the contribution they make to your business.
  10. Always pay wages on time.


  1. Dismiss employees who are not contributing to the success of your business.
  2. Know all regulations governing the dismissal of employees.
  3. Keep a record of poor performance and attitude and all warnings (verbal or written) that you have given the employee.
  4. Give required notice of termination if necessary.
  5. Treat employees with respect even though you have to let them go.
  6. Be firm in your decision.



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