BUSINESS

  financial foundations

Human Resource Management

Maximizing staff productivity and effectiveness

DAVID MILLS, O.D., M.B.A.

No component is more important to your financial success than the how you manage the most important asset of your business: your employees.

Human Resource Management (HRM) is a formalized structure developed to maximize the productivity and effectiveness of your staff. Once thought of as a small function of an organization, HRM is now the center of the organizational chart. HRM has an impact on all aspects of the business. Your employees are the “face” of your business. Therefore, an effective HRM ensures that your patients will receive the experience you desire and, further, a successful practice.

Here, I discuss the steps to developing an HRM system for your business.

1 Identify your needs

Clearly, the HRM needs of a small business do not require the complexity found in large corporations. That does not mean, however, that small businesses, such as optometric practices, do not face critical employment problems. One incompetent or dishonest employee may create a much larger negative impact on a small business than on an organization of 100 or more employees.

As small businesses typically employ a small number of employees, each employee is assigned a number of different tasks. For example, in most optometric practices, one employee not only files claims for services, but is also responsible for posting payments, collecting on accounts receivables and all other aspects of the revenue cycle. In a large corporation, each of these tasks are the responsibility of different employees.

2 Evaluate staff utilization

Being over- or understaffed can negatively affect your business. This is why creating an optimal staff mix, in which employee productivity is maximized, is integral to HRM. (For more information, see “Staff Mix: Part 1,” September 2014 OM).

If you are thinking of hiring a new employee, several factors should be considered. First, an additional employee will create an expansion in payroll expenses. Additionally, a new position will have an impact on your organization’s structure, which may create tension with the current employees. So, before creating a new position, evaluate whether your current employees are being utilized in the most efficient manner.

3 Create a manual

The personnel policies and procedures you develop must be aligned with the strategic plan and goals of your business. Therefore, it is imperative that you develop an employee manual.

The employee manual documents all procedures and policies within the business. It will serve as a guide in areas of compensation, employee benefits, training, promotions, general office policies as well as cause for termination. Having an employee manual will help ensure that all employees are treated fairly. This will go a long way in making sure that your employees are as productive as possible. Remember, state employment laws vary, so be sure your policies are in compliance.

The right approach

It is difficult to run a successful business without effectively managing your employees. Allocating time and resources to the development of HRM will help ensure you are maximizing the largest asset of your practice — your employees. OM

DR. MILLS PRACTICES AT OCEAN STATE EYE CARE IN WARWICK, R.I., AND HOLDS A M.B.A. FROM PROVIDENCE COLLEGE. E-MAIL HIM AT MILLSD@NECO.EDU, OR SEND COMMENTS TO OPTOMETRICMANAGEMENT@GMAIL.COM.