Tips on how to manage your first employees in a small business

1Setting goals and objectives for employees

Managers should set clear goals and objectives to help employees understand what they're working toward and how they contribute to overall business success. For example, employees may be expected to meet a specific sales quota or resolve a certain number of customer support requests, or work remotely a few days a week.

Setting clear employee goals can provide much-needed structure for your team members, keeping them motivated as your business grows.

2Provide professional training for employees

Give employees the tools, skills, and knowledge they need to succeed in their roles and evolve as professionals. As Gallup reported, 71% of U.S. workers say job training and development increased their job satisfaction, and almost half said they would switch to a new job if it offered skills training opportunities.¹

Creating a thorough onboarding and training process can set employees up for successful career development within your business.

3Review employees’ performance

Review employees' performance on a regular basis — such as monthly or quarterly — to make sure people are tracking toward their goals, satisfied in their roles, and acknowledged for their work.

For example, small business managers may establish a monthly performance appraisal meeting with each employee to assess their performance and provide feedback.

4Be communicative with employees and vice versa

Be communicative and upfront with employees — both during scheduled performance reviews and throughout each workday as needed. If a problem arises, address it head-on with clear, constructive communication. If an employee is doing a particularly good job, let them know by providing positive reinforcement.

On the flip side, encourage employees to communicate with their managers as well. Whether through instant messaging platforms, emails, feedback forms, or good-old in-person conversations, create an open channel of communication for employees to voice their needs and ideas in real time.

5Build trust with your employees

Building trust is very important in the workplace. Employees should feel safe and comfortable enough to ask challenging questions, try out new strategies, and take guided risks. In fact, nearly 80% of employees who trust their employer are not only more motivated to work but also less likely to leave.²

To start, small business managers can use these tips to build trust with employees:

• Accept feedback and avoid giving defensive responses
• Treat all employees equally regardless of their status or experience
• Invest in long-term employee relationships by providing opportunities for growth
• Encourage collaboration and team-building

6Always support your employees

Take proactive steps to support your employees professionally and personally, when appropriate. Supporting employee mental health and well-being, in particular, can help reduce burnout and increase job satisfaction. For instance, you may provide opportunities for career advancement, improving work-life balance, and practicing self-care.

So how can managers support employees? Begin with these quick tips:

• Accommodate flexibility in work arrangements when possible
• Offer training, skill development, and career advancement paths
• Pay attention to employees' concerns, ideas, and feedback, showing that their opinions matter
• Offer resources for physical and mental well-being, such as mental health or wellness days

7Reward your employees for their performance

Small business managers should celebrate employees for a job well done. Rewarding employees for their work helps boost morale and encourage future success. It also shows employees that their efforts are valued and appreciated.

There are many ways to reward employees for their performance, such as through monetary compensation, special perks or bonuses, public acknowledgment, and one-on-one feedback.

8Offer a benefits package to help manage employees

Help attract and retain employees by offering a competitive company benefits package. For example, you may offer health insurance options, paid leave, perks for remote workers, and retirement plans.

Investing in an employee benefits package can set your business apart from competitors and show team members that you value their personal wellness.

9Motivate your team to energize employee performance

Wondering how to motivate employees as a manager? There are several ways you can work to energize your team. Here are some examples:

• Mentorship and coaching: Pair experienced employees with newcomers for guidance and skill development.
• Team building: Organize team-building activities, outings, or casual gatherings to strengthen interpersonal relationships.
• Innovation: Encourage idea sharing and experimentation, allowing employees to contribute meaningfully and creatively.
• Peer-to-peer recognition: Implement a system where team members can acknowledge each other's contributions.
• Gamification: Introduce friendly competitions, challenges, or point-based systems to make tasks more engaging.

10Balancing workload and well-being

Managing people at work can sometimes be a challenge. That’s why balancing workload and well-being is key to small business employee management. Here are strategies you can implement easily and quickly:

• Allow employees to work remotely or have flexible hours to balance work and personal commitments.
• Create an atmosphere where employees feel comfortable discussing concerns with management.
• Design a comfortable workspace with ergonomic furniture and adequate lighting.
• Encourage employees to take short breaks to stretch, relax, and recharge during the workday.
• Offer access to counseling services or employee assistance programs for emotional and mental well-being.
• Ensure workloads are reasonable and manageable to avoid burnout.
• Allow employees to take sick days or personal days when needed.