Startups are more fragile than established companies with deeper pockets. Small events at a large corporation might barely go noticed while it could mean termination at a smaller company. The best thing to do is stay calm if something is going seriously wrong as a panicked decision is rarely the solution. A plan of action in case certain unfortunate events do occur is wise to create. Preventative policies can also work wonders by reducing the likelihood of disasters transpiring. Below will investigate common events that can occur as well as doing damage control to help keep the company healthy.
False Termination Claims
There are quite a few entitled people in the workforce that believe that subpar performance over long periods of time should guarantee employment. The best thing that can be done is to have every infraction signed by the employee along with an email where they confirm receiving it. Treating people without bias can be difficult but the same infraction should be met with the same punishment. If this is not done, there could be a claim of discrimination due to differences in punishment.
Top Employee Arrested
A top employee could be arrested for something like a DUI or drug possession. The right criminal defense lawyer will be able to help get this charge reduced or completely thrown out. The top employee if charged with a violent crime needs to be let go due to being a potential danger to staff. In the less serious cases, take the time to establish that this cannot happen again. Substance abuse classes or anger management classes being required can help the employee grow personally as they are already an incredible employee. Treat your employees like you would want to be treated in the case you make a mistake as many people have.
Former Employees Stealing Clients
A former employee stealing clients can be common whether they work for a new company or went into business alone. Legal paperwork can help reduce the likelihood of this happening but cannot prevent it totally. Keep client contact information on a need to know basis only as people from all departments could try to pitch a client if they acquire a new job. Client managers need to be trusted as these employees maintain the rapport between the company and the client.
Hiring Too Quickly Leading To Cash Flow Shortage
Hiring too quickly can lead to cash flow shortages making it difficult to run the business efficiently. Take hiring slowly to help ensure the current staff has all productivity processes optimized. Keeping the employee number down also requires hiring versatile employees that can work in multiple roles if needed. The automation of processes can allow current staff to handle current workload as their time will be managed in a more efficient way. Using hiring software can be a huge help as seeing trends in quality hires can provide immense insight.
Startups can thrive in short amounts of time if they maintain low costs and continually increase revenue monthly. Take the time to do a thorough risk analysis to help tighten up certain aspects of your startup today!